Definition of Sale (Sec. 54, TPA)
“Sale” is a transfer of ownership in exchange for a price paid or promised, or part-paid and part promised.
Essentials of valid sale
- The seller must be a person competent to transfer. Thus he must be a major and of sound mind and should not be legally disqualified to transfer the property.
- The buyer must be the person competent to be a transfer. He may be any person who is not disqualified to be transferee under sec. 6.
- The subject matter of sale must be transferable immovable property, which can be tangible.
- There must be a transfer of ownership.
- The transfer must be in exchange for a price.
The price must be paid or promised or partly paid or partly promised. It is not mandatory that payment of the price should be at the time of the execution of the sale. The price can be paid even before at the time or even subsequent to the completion of the sale. Price is the essence of the contract of sale but the time for payment of it is not the essence of the sale unless the contract stipulates so.
Sale how effected
Generally, a sale take place via a validly executed sale deed which is in writing, properly attested and registered. In case of property of nominal value, the sale of property could be completed by a simple delivery of possession of such property or by a registered instrument.