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HomeCA FoundationbusinesslawSale of Goods — Formation of the Contract of Sale › A agrees to exchange his old car for B's new car…

A agrees to exchange his old car for B's new car, paying the difference in cash. This transaction is:

AA barter, not a sale
BA hire-purchase
CA valid contract of sale, the price being partly money and partly in kind
DVoid for want of money price
Answer & Solution
Correct answer: C. A valid contract of sale, the price being partly money and partly in kind
A transfer of goods for a price payable partly in money and partly in kind is a valid contract of sale; a pure goods-for-goods swap would be barter.
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