Sales contract is a typical contract in contract law of China

Sales contract is one of the most common contracts made between manufacturing companies, trade companies and etc. As per the law, other contract in dispute, when without specific regulation, may refer to the ruling of sales contract. The Article 595 says a sales contract is a contract whereby the seller transfers the ownership of the subject matter to the buyer and the buyer pays the price。

This article defines the concept of a sales contract.

A sales contract is a contract in which the seller transfers the ownership of the subject matter to the buyer, and the buyer pays the corresponding price.

The sales contract is the most important traditional contract with a long history of development in civil law. It is the product of commodity exchange at a certain stage of development and the most basic, important and representative legal form of commodity exchange.

(1) a sales contract is a contract for transferring the ownership of the subject matter;

(2) a sales contract is a bilateral contract;

(3) a sales contract is a paid contract;

(4) a sales contract is a consensual contract;

(5) a sales contract is generally an informal contract.

The parties to a sales contract include the seller and the buyer:

(1) The buyer must have the corresponding civil capacity. People with special identities cannot become the buyer of a specific sales contract. For example, a guardian cannot purchase the property of the ward, a trustee cannot purchase the property entrusted by the principal to sell, a public official and his spouse cannot purchase the property sold or disposed of by the public official in accordance with his authority, and the directors and managers of a limited liability company or a joint stock company cannot enter into a contract or conduct a transaction with the company to become the buyer of a specific sales contract.

(2) In addition to having the corresponding civil capacity, the seller shall also be the owner of the subject matter of the sales contract or other person with the right to dispose of the subject matter in accordance with Article 597, paragraph 1 of this Part.