A sale is a transaction between 2 parties i.e. the buyer and the seller. Buyer receives the goods or services and seller sells these goods and services in exchange of money.
Sale can also be referred to as a contract or agreement between a buyer and a seller which they undertake for the price of a good or a service.
Case breakdown: Movie Mrs. Doubtfire:
The scene that you just saw shows an exchange between a customer and a restaurant. When the order is accepted by the restaurant, there is an implied agreement that forms between the client and the restaurant. A customer is required to pay for the food that the restaurant will deliver. This is a type of Sales transaction.
Mrs. Doubtfire or Robin Williams who is pretending to be a nanny for his own kids, wants to impress his wife orders food from a high end restaurant in San Francisco.
In this movie Mrs. Doubtfire (Played by Robin Williams) is calling up Valenti’s Restaurant and ordering food. Now, the restaurant will cook food knowing, the customer (Mrs. Doubtfire) will pay when goods (food) are delivered to her house. Mrs. Doubtfire spent a total of $140 on the food while the food costed him $135.27.
How does a Sale take place?
For a sale to take place, there needs to be certain conditions met for it to be called as a sale.
First, Both parties should be considered of sound mind, when entering into a sales transaction.
Second, There should be goods or services available to be purchased.
Third, If one party enters into a transaction and does not receive any payment for it, then it might be considered as a charity or donation.
Everyday, countless sales transactions takes place and without them this economy would not work.
Written by: Ms. Gitika Chandra