A contract of sale is a contract where by the ownership of movable goods is tranferred from the seller to the buyer. The term 'Contract of Sale' is defined in Sec 4(1) of the Sale of Goods Act, as:-

"A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a price."

The analysis of this section reveals that a contract to transfer property in the goods (i.e legal ownership of the goods) is known as a contract of sale. The ownership of the goods is transferred from the seller to the buyers for a price.