THE SALE OF GOODS ACT,1930
Goods :-
Goods mean any kind of movable property other than money & actionable claim & includes :-
stocks & shares
growing crops
grass
things attached to OR forming part of land but which can be severed {separated} at the time of the contract.
Types of goods :-
1) Existing goods :
They are those which exists in the possession OR custody of the seller at the time of the contract of sale.
They are further divided into :-
Ascertained goods -
They are those, which can be identified at the time of the contract. e.g. :- Purchase of TV, Refrigerator, etc..
Unascertained goods -
They are those, which cannot be identified at the time of the contract. e.g. :- A buyer wants to purchase 5 kgs of sugar out of a bag containing 100 kgs of it.
2) Future goods :
They are those, which are not in the possession of the seller in the condition in which they should be sold. These goods are to be produced OR manufactured OR acquired by the seller after the contract of sale. e.g. :- A buyer desires to purchase furniture of a particular description to be made by a carpenter.
Contract of sale :-
A contract of sale of goods is a contract where by the seller transfers OR agrees to transfer the property in the goods to the buyer for a price. Such a sale may be absolute OR conditional.
Where under a contract of sale the property in the goods is transferred from the seller to the buyer the contract is termed as sale.
Where the transfer of property in the goods is to take place at a future date OR after certain conditions are fulfilled the contract is termed as an agreement to sale. An agreement to sale becomes a sale after the expiry of the time agreed upon OR after the condition is fulfilled.
Essentials of a contract of sale :-
Parties -
The buyer & the seller who must be competent to contract.
Goods -
The contract must be in respect of the sale of goods.
Transfer of ownership -
There must be a transfer of ownership from the seller to the buyer i.e. the buyer becomes the owner of the goods after sale.
Consideration -
Consideration of a contract of sale is always in terms of money.
Form -
For a contract of sale there is no particular form prescribed. It can be in writing OR oral.
A contract of sale may be absolute OR conditional. A contract of sale is of 2 types :-
When it is absolute the ownership of the goods is transferred to the buyer. Such a contract is termed as a sale.
When the contract is conditional the ownership of the goods is transferred at a future date. Such a contract is termed as an agreement.
When the condition of the transfer of the goods is on a future date it may be either done after the lapse of certain agreed time OR it may depend upon certain conditions upon the fulfillment of which the goods are transferred i.e. the agreement to sell becomes a sale.
A condition to a contract of sale may be of 2 types :-
Condition precedent-
A condition that is to be fulfilled before the agreement to sell is converted into sale. e.g. :- A orders for certain furniture to be manufactured by B according to his description. This is an agreement to sell where there is a condition to be fulfilled by B i.e. the manufacture of the furniture before the agreement to sell is converted into sale {the ownership of the goods is transferred to the buyer}.
Condition subsequent -