Question

Discuss the requirements that must be met before a contract of purchase will be perfecta. (The risk can pass to the buyer even before transfer of ownership as long as the contract has become perfecta.)

8 marks

Answer 1

A contract of purchase is said to be perfecta when that contract is a completed one. The risk passes to the buyer from the seller when the contract is perfecta. The requirements to be met include the following.

Both buyer and seller have the intention of buying and selling: Intent of the parties is very important in making an agreement valid and in order to make the purchase agreement valid, the buyer and seller should have the intent to buy/sell while entering into the contract.

The purchase price should be fixed or can be fixed: Price is an important factor in a contract of purchase. A purchase contract becomes a completed one only when the purchase price is already fixed or can be fixed easily.

All the goods are specified: All the things to be sold as part of the purchase contract should be specified in the contract.

No further conditions: The contract should not have any further conditions to be satisfied and if any conditions are to be met, that must have been already fulfilled.