INDIAN SALES OF

GOODS ACT,1930
KIND OF GOODS
● Existing goods- Sec.6(1) these are the goods which are in
existence and are physically present in the sellers possession. They
are further classified as
● Specific goods- 2(14) – these are the goods identified and agreed
upon at the time the contract is made.
● Ascertained goods- these are identified after the formation of the
contract.
● Unascertained goods- these are the goods which are not
specifically identified or agreed upon at the time of the contract of
sale.
● Future goods -sec.2(6) and Contingent goods 6(2)
PLEDGE :

●  
• Sec. 172 of the Indian Contract Act – 1872 defines pledge as
‘bailment of goods as security for payment of debt or
performance of a promise.

• The person who offer security is called – PLEDGER

● To whom it is offered is called – PLEDGEE
HYPOTHECATION :

• Which is another method of creating charge over the movable

assets, neither ownership nor possession of goods is transferred
to the creditors but an equitable charge is created in favour of the
latter.
●  
• The banks retain in the possession of the borrower, who bind
himself under an agreement, to give the possessions of the goods
to the banker, where the banks require to do.
MORTGAGE :

● Sec. 58 of the transfer of property Act 1882 defines mortgage as –

●  The transfer of an interest in specific immovable property for
the purpose of securing the payment of money, advanced or to be
advanced by way of loans, an existing or future debt, or the
performance of an engagement which may give rise to a
pecuniary liability.
●   In this case transfer is called “MORTGAGOR”
● Transferee is called – “MORTGAGEE”
● Principle money & Int. thereon is called – “MORTGAGE
MONEY”
● Instrument is called – “MORTGAGE DEED”.
IMPLIED CONDITIONS
● Conditions as to title.(sec 14 (a))
● Sale by description (sec.15)
● Condition as to quality or fitness.(sec 16(1))
● Condition as to merchant ability(sec 16(2))
● Conditions implied by custom(sec16(3))
● Sale by sample (sec.17)
● Condition as to wholesomeness.