The Sale of Goods Act-1930

Eid in Jamalpur

The Sale of Goods Act-1930

 

1.Buyer : Buyer means a person who buys or agrees to buy goods. Sec.2(1)

2.Seller : Seller means a person who sells or agrees to sell goods. Sec 2(13).

3.Goods : The term “Goods” includes every kind of movable property except (i) actionable claims and (ii) money. Sec. (27)

Types of goods:

     i) Existing goods-

           a) Specific and ascertained

           b) Generic and Unascertained

    ii) Future goods

   iii) Contingent goods

 

 

i)i) Existing goods: Existing goods are goods which are already in existence and which are physically present in some person’s possession and ownership. Sec 6(1)

 a) Specific goods are goods which can be clearly identified and recognized as separate things e. g., a particular picture by a painter ; a ring with distinctive features etc.

b) Generic goods or unascertained goods are goods indicated by description and not by separately identified.

If a merchant agrees to supply one bag of wheat from his godown to a buyer, it is a sale of unascertained goods because it is not known which bag will be delivered.

As soon as a particular bag is separated out and marketed or identified for delivery becomes specific goods.

ii) Future goods: Future goods are goods which will be manufactured or produced or acquired by the seller after the making of the contract of sale.

Example :

 P agrees to sell to Q all the mangoes which will be produced in his garden next year. This is an agreement for the sale of future goods.

 

iii) Contingent goods: There may be a contract for the sale of goods the acquisition of which by the seller depends upon a contingency which may or may not happen. Contingent goods come within the class of future goods.

Example: X agrees to sell Y a certain ring provided he is able to purchase it from its present owner. This is an agreement for the sale of contingent goods.

 

Sale and agreement to sale:

A contract for the sale of goods may be either a sale or an agreement to sell.

An agreement to sell:

When the transfer of ownership is to take place at a future time or subject to some condition to be fulfilled later, the contract is called an agreement to sell.

 

When an agreement to sell becomes a sale?

An agreement to sell becomes a sale when the prescribed time elapses or the conditions are fulfilled.

P agrees to buy a quantity of soda to arrive by a certain ship. This is an agreement to sell because the property in the goods will pass to the buyer when the goods come and the agreement is naturally subject to the condition that the ship arrive in port with the goods.