ALIGARH

MUSLIM UNIVERSITY
Malappuram centre,kerala

2019-2020
Semester-4

General Class test report -1
In the subject of
Business law

Submitted to- Dr.Azmat Ali (Asst. Prof.)

Submitted by- Ankur singh

Roll no. 18ballb41

Question: Define sale and list the different
types of goods included in sale of goods act ,1930?

Answer-:
Introduction

A sale is a transaction between two or more parties in which the buyer receives tangible
or intangible goods, services, and/or assets in exchange for money. In some cases, other
assets are paid to a seller. In the financial markets, a sale can also refer to an agreement
that a buyer and seller make regarding the price of a security.

A sale determines that the seller provides the buyer with a good or service in exchange for a
specific amount of money or specified assets. To complete a sale, both the buyer and the seller
have to be considered to be competent enough to make the transaction. They also have to be in
agreement regarding the specific terms of the sale. In addition, the good or service that is being
offered has to actually be available to purchase, and the seller has to have the authority to
transfer the item or service to the buyer.

1. A sale is a transaction between two or more parties, typically a buyer and a seller, in
which goods or services are exchanged for money or other assets.

2. In the financial markets, a sale is an agreement between a buyer and seller regarding
the price of a security.

3. If the item or service in question is transferred by one party to the other party with no
compensation, the transaction is not considered to be a sale, but rather a gift or a donation.

To be formally considered a sale, a transaction must involve the exchanging of goods, services,
or payments between a buyer and a seller. If one party transfers a good or service to anothe

r without any receiving anything in return, the transaction is more likely to be treated as a gift
or a donation, particularly from an income tax perspective. To complete a sale, both the buyer
and seller must be deemed competent, and they have to agree on the terms of the sale, that the
good or service in question is available to buy, and that the seller has the authority to transfer
the item to the buyer.

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Every day, millions of people take part in countless sales transactions across the globe. This
creates a constant flow of assets and forms the backbone of the associated economies. The
sales of goods and services within a retail market are a more common form of sales
transaction; the sales of investment vehicles in the financial markets are considered highly-
refined value exchanges.A sale can be completed as part of the operation of a business–within
a grocery store or a clothing retailer–as well as between individuals. Items purchased through a
yard sale would be considered a sale between individuals while purchasing a personal vehicle
from a car dealership would represent a sale between an individual and a business. Sales can
also be completed between businesses, such as when one raw materials provider sells available
materials to a business that uses the materials to produce consumer goods.

Example of sale

When an individual is purchasing their first home, a sale occurs when the home is sold to the
buyer. However, there are many layers of sales surrounding the deal, including the process of a
lending institution providing financing in the form of a mortgage to the homebuyer. The
lending institution can then sell that mortgage to another individual as an investment. An
investment manager could earn his living trading bundles of mortgages, called mortgage-
backed securities, and other kinds of debt financing.

Goods included in sales of goods act ,1930

One of the most crucial terms to define is the goods that are to be included Act defines the term
“Goods” in its sec 2(7) as all types of movable property. The sec 2(7) of the Act goes as
follows:

“Every kind of movable property other than actionable claims and money; and stocks and share
growing crops, grass, and things attached to or forming part of the land which are agreed to be
severed before sale or under the contract of sale will be considered goods”

As you can see, shares and stocks are also defined as goods by the Act. The term actionable
claims mean those claims which are eligible to be enforced or initiated by a suit or legal action.
This means that those claims where an action such as recovery by auction, suit, refunds etc.
could be initiated to recover or realize the claim.We say that goods are in a deliverable state
when their is such that the buyer would, under the contract, be bound to take delivery of these
goods. Goods may be further understood in the following subtypes:

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1. Existing Goods

The goods that are referred to in the contract of sale are termed as existing goods if they are
present (in existence) at the time of the contract. In sec 6 of the Act, the existing goods are
those goods which are in the legal or are owned by the seller at the time of the formulation of
the contract of sale. The existing goods are further of the following types:

A) Specific Goods

According to the sec 2(14) of the Act, these are those goods that are “identified and agreed
upon” when the contract of sale is formed. For example, you want to sell your mobile phone
online. You put an advertisement with its picture and information. A buyer agrees to the sale
and a contract is formed. The mobile, in this case, is specific good.

B) Ascertained Goods:

This is a type not defined by but by the judicial interpretation. This term is used for specific
goods which have been selected from a larger set of goods. For example, you have 500 apples.
Out of these 500 apples, you decide to sell 200 apples. To sell these 200 apples, you will need
to separate them from the 500 (larger set). Thus you specify 200 apples from a larger group of
unspecified apples. These 200 apples are now the ascertained goods.

C) Unascertained Goods:

These are the goods that have not been specifically identified but have rather been left to be
selected from a larger group. For example, from your 500 apples, you decide to sell 200 apples
but you don’t specify which ones you want to sell. A seller will have the liberty to choose any
200 apples from the lot. These are thus the unascertained goods.

2. Future Goods

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In sec 2(6) of the Act, future goods have been defined as the goods that will either be
manufactured or produced or acquired by the seller at the time the contract of sale is made. The
contract for the sale of future goods will never have the actual sale in it, it will always be an
agreement to sell.

For example, you have an apple orchard with apples in it. You agree to sell 1000 apples to a
buyer after the apples ripe. This is a sale that has to occur in the future but the goods have been
identified already and the agreement made. Such goods are known as future goods.

3. Contingent Goods

Contingent goods are actually a subtype of future goods in the sense that in contingent goods
the actual sale is to be done in the future. These goods are part of a sale contract that has some
contingency clause in it. For example, if you sell your apples from your orchard when the trees
are yet to produce apples, the apples are a contingent good. This sale is dependent on the
condition that the trees are able to produce apples, which may not happen

Conclusion

from the above overall discussion it is clear that A sale is a transaction between two or more
parties, typically a buyer and a seller, in which goods or services are exchanged for money or
other assets and there are three different types of goods included under the sale of goods
act,1930. The existing goods, future goods,contigents goods and also If the item or service in
question is transferred by one party to the other party with no compensation, the transaction is
not considered to be a sale, but rather a gift or a donation and this gives us a basic knowledge
of what is sale and goods included in sale