PPT PRESENTATION

Subject-Law Of Contarct-II
Profesor - Shilpa Jadhav Mam

Kinds of Goods under the Sale

of Goods Act, 1930
LLB (3 Years BSL)

Design And Prepare BY - Vijay Deshmukh

 INTRODUCTION
• Every individual, whether a businessman or a common man, who deals in the
transaction of goods regularly, must understand the important terms of the Sale of
Goods Act, 1930.
• India is one of the largest economies that has adequate measures to ensure the safety of
its business.
• The sale of commodities is one of the most important types of contract under the law in
India.
• This act was passed because the provisions of the contract act were found to be
inadequate to deal with new situations that were arising due to an increase in mercantile
situations.
 Kinds of Goods under the Sale of Goods Act, 1930
• According to Section 2(7) of the Sale of Goods Act 1930, Goods means “Every kind of
movable property other than actionable claims and money; and includes stock and
shares, growing crops, grass, and things attached to or forming part of the land, which
are agreed to be separated from the land before a sale or under the contract of sale”. The
term Goods includes tangible and intangible goods like goodwill, copyrights, patents,
trademarks, etc. For goods even stock and shares, gas, steam, water, electricity, and
decree of the court are also included in the term goods. To sum up, goods means:
• Every kind of immovable property.
• It excludes actionable claims and money in circulation.
• It also includes stock and shares, gas, steam, water, electricity, and decree of the court.
 KINDS OF GOODS UNDER THE SALE OF
GOODS ACT, 1930
1
3

Existing Goods 2
Contingent Goods
I. Specific Goods:
II. Ascertained Goods:
III. Unascertained Goods:
Future Goods
 1.Existing Goods

• According to Section 6 of the Sales of Goods Act, 1930, “Existing goods are those
goods that exist at the time of making a contract of sale or in other words these goods
are physically present at the time of contract.” Existing goods are owned/acquired or
have the seller at the time of entering the contract of sale. There can be three
distinctions in existing goods:
 1.Existing Goods I. Specific Goods:
• According to Section 2(14) of the Sales of Goods Act, the goods that are particularly
identified and which are agreed upon at the time of the formation of the contract of sale
are known as Specific Goods.

• For example, Rohit went to Rahul’s mobile shop. Rahul’s shop has different types of
smartphones from different companies. Rohit specifically selects the Samsung S23
12+256GB phantom black variant. Rahul agrees to sell the Samsung S23 12+256GB
phantom black variant to Rohit. In this case, the sale is for a specific mobile phone and
hence is a specific good.
 1.Existing Goods II. Ascertained Goods:
• Ascertained Goods are those goods that are identified as per the agreement after the
contract of sale is initiated. However, the term Ascertained Goods is not defined in the
act but has been carved out of judicial judgments and interpretations. In a real scenario,
ascertained goods are used in the same sense as specific goods. When out of a big lot
or out of a huge quantity of unascertained goods, a particular number or particular
quantity to be contracted for is identified, such particularly identified goods are called
Ascertained Goods. It is worth noting that before the ascertainment of the goods, the
contract was for the sale of unascertained goods.
 1.Existing Goods II. Ascertained Goods:

• For example, Mukesh is a dealer of clay pots and has 2,000 clay pots, which he keeps
in his warehouse. Rahim contracts with Mukesh to purchase 500 clay pots. Rahim
selected 500 clay pots out of 2,000 and set them aside to purchase. As the clay pots that
are to be sold are identified and agreed upon after the formation of the contract, this is
a contract for Ascertained Goods.
 1.Existing Goods III. Unascertained Goods:

• Unascertained Goods are those goods that are not particularly identified or ascertained
at the time of the making of the contract. Unascertained Goods are indicated or defined
only by description or sample.

• For example, Tim, a dealer of pulse agrees to sell 50kg of pulse to Jim out of a lot of
1,000kg. Here, the goods that will be sold to Jim are not specific as they will be given
out of the lot of 1,000kg, Tim may randomly select 50kg of pulse and sell it to Jim.
This is a case of Unascertained Goods.
 2. Future Goods

• According to Section 2(6), “Future goods are those goods that are to be manufactured,
produced or acquired by the seller after entering the contract of sale.” These are the
goods that do not exist at the time of the contract of sale and will be
manufactured/acquired/produced as per the description of the contract. It is to be noted
that a contract for the sale of future goods is in all cases an agreement to sell. It is never
considered an actual sale because a person cannot transfer goods that do not exist.
• For example, GeeksforGeeks contracts with a clothing brand to supply them with 500
custom-designed hoodies. This is an agreement of sale, as the sale will take place at a
future date after the clothing brand manufactures the hoodies as per the design. This is
a sale of future goods.
 3. Contingent Goods

• According to Section 6(2) of the act, “When the acquisition of goods is dependent
upon an uncertain contingency or an uncertain event, it is called Contingent Goods.”
Contingent goods are deemed to be an agreement to sell and not a considered sale, as in
the case of future goods the property in goods is not transferred to the buyer at the time
of making a contract.

• For example, Kartik contracts with Murli that he will buy 100 units of umbrellas if it
rains in June. Here, the agreement is based on a contingency, and it is a case of
Contingent Goods.
 Effect of Perishing of Goods

1. Goods Perishing before making of Contract: It is established under Section 7 of the

Sales of Goods Act, 1930. In the case of a contract for the sale of specific goods, if at the
time when the contract was made, the goods perish or get damaged without the knowledge
of the seller, and they fail to have the same characteristics or description as it was
mentioned at the time of contract, then the contract will be void.
 Effect of Perishing of Goods

2. Goods perishing before sale but after an Agreement to Sell: It is established under
Section 8 of the Sales of Goods Act, 1930. When there is an agreement to sell specific
goods, and subsequently the goods perish or get damaged without the fault of the seller or
buyer and such goods fail to have the same characteristics or description as it was
mentioned at the time of contract, then the contract will be void.

3. Perishing of Future Goods: In cases where the future goods are specific, any destruction
of goods will amount to a supervening impossibility, and the contract shall be void.
 Conclusion
The Sale of Goods Act, 1930 is an umbrella act that governs all forms of sales. A sale is a
general contract wherein the seller or owner of particular goods transfers or agrees to
transfer the goods to a buyer at an agreed price. The Sales of Goods Act, 1930 specifies all
rights and duties of the seller and other provisions which are of major prominence. The
Sales of Goods Act is centered around the contract of sale of goods, where the goods have
been defined as “Goods means every kind of movable property other than actionable claims
and money, and includes stock and shares, growing crops, grass, and things attached to or
forming part of the land, which are agreed to be separated from the land before sale or
Law Of Contract II PPT Presntation