Q.14 Define Price.
Ans: In respect of sales, the first rule is that no sale can take place without price. If there be no valuable consideration to support person of a voluntary surrender of goods by real owner to another person, the transaction is gift and is not governed by the rules relating to sale.
Section 4(1) lays down that no constitute a contract of sale, the transfer or agreement to transfer property in goods must be for a price. Therefore, price, which is defined by Section 2(10) as money consideration for a sale of goods, constitutes the essence of a contract of sale. It may be money actually paid or promised to be paid according to the agreement is for a cash on a certain sale but in other consideration than money must be given is not a sale, moreover the money must be given as the price.
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How price is determined?