Page:United States Statutes at Large Volume 50 Part 1.djvu/55

30 Between one part o wner and another . Capacity . Liability for neces- saries . "Necessaries" de- fined . Formalities of the contract . Form of contract or sale. Statute of frauds . scope . Acceptance of goods. Subject matter of contract . Existing and future goods . 'Undivided shares. Fungible goods . (4) There may be a contract to sell or a sale between one part owner and another . SEC. 2. CAPACITY-LIABILITIES FOR NECESSARIES .-Capacity to buy and sell is regula ted by the general la w concerni ng capacit y to con- tract and to transfer and acquire property . Wliere necessaries are sold and delivered to an infant, or to a person who by reason of mental incapacity or drunkenness is incom- petent t o contract , he must p ay a reaso nable pric e therefor . "Necessaries" in this section means goods suitable to the condition in life of such infant or other person, and to his actual requirements at the time of delivery . FORMALITIES OF THE CONTRACT SEC . 3 . FORM OF CONTRACT OR SALE .-Subject to the provisions of this Act and of any statute in tha t behalf, a contract to sell or a sale may be made in writing (either with or without seal), or by word of mouth, or partly in writing and partly by word of mouth or may be inferred f rom the co nduct of t he parties . SEC. 4. STATUTE or FRAUDS.- (1) A contract to sell or a sale of any goods or choses in action of the value of $500 or upwards shall not be enforceable by action unless the buyer shall accept part of the goods or choses in action so contract ed to be sold or so ld, and actually receive th e same, or give some thing in e arnest to bind the c ontract, or in part payment, or unless some note or memorandum in writing of the contract or sale be signed by the party to be charged or his agent in t hat behalf . (2) The provisions of this section apply to every such contract or sale, notwithstanding that the goods may be intended to be delivered at some future time or may not at the time of such con- tract or sale be actually made, procured, or provided, or fit or ready for delivery, or some act may be requisite for the making or complet- ing thereof, or rendering the same fit for delivery ; but if the goods are to be manufactured by the seller especially for the buyer and are not suitable for sale to others in the ordinary course of the seller's business, the provisions of this section shall not apply . (3 ) There is an accepta nce of goods w ithin the mea ning of this section when the buyer, either before or after delivery of the goods, expresses by words or conduct his assent to becoming the owner of those specific goods . SUBJECT MATTER OF CONTRA CT SEC . 5 . EXISTING AND FUTURE GOODS .-(1) The goods which form the subject of a contract to sell may be either existing goods, owned or possessed by the seller, or goods to be manufactured or acquired by the seller after the making of the contract to sell, in this Act called future goods . (2) There may be a contract to sell goods, the acquisition of which by the seller depends upon a contingency which may or may not happen . (3) Where the parties purport to effect a present sale of future goods, the agreement operates as a contract to sell the goods . SEC . 6. UNDIVIDED SHARES .-(1) There may be a contract to sell or a sale of an undivided share of goods . If the parties intend to effect a present sale, the buyer, by force of the agreement, becomes an owner in common with the owner or owners of the remaining shares . (2) In the case of fungible goods, there may be a sale of an undivided share of a specific mass, though the seller purports to sell 75TH CONGRESS, 1sT SESSION-C H. 43-MARCH 1 7, 1937