2. The Sale of Goods Act is basically a law that deals
with sale of goods in India.
It came into existence on 1 July 1930.
It is applicable all over India, except Jammu and
Kashmir.
Introduction
3. When the right of ownership in the goods is
transferred from the seller to the buyer, it is called
sale of goods.
Sale Of Goods
4. If Nitish sells his Musical Instruments to Sorab for
a sum of Rs 15000/-. This transaction is called sale.
Since the ownership of musical instruments is
transferred from Nitish to Sorab.
Example
6. Where the transfer of ownership in the goods is
immediately transferred from the seller to the
buyer.
Absolute Sale
7. Where the transfer of ownership in the goods shall
take place in future or on the fulfillment of certain
conditions.
Conditional Sale
8. “ A contract of sale of goods is a contract
whereby the seller transfers or agrees to
transfer the property in goods to a buyer for a
price.”
Contract Of Sale
10. It should satisfy all the essentials of a valid
contract namely, a valid offer, a valid acceptance,
free consent of the parties, a valid and lawful
consideration etc.
Valid Contract
11. There must be atleast two parties, the seller and the
buyer.
Seller means a person who sells or agrees to sell goods.
Buyer means a person who buys or agrees to buy goods.
Bilateral Contract
12. There should be immediate transfer or an
agreement to transfer the ownership of goods sold.
Transfer of Ownership
13. A price in money should be paid or promised.
Where there is no money consideration the
transaction is not a contract of sale.
Price
14. Goods means every kind of movable property
other than actionable claims and money.
Example: Copyright, Musical Instrument, Cement,
Patents, Stocks, Shares, etc.
Goods
16. Goods owned and possessed by the seller at the
time of the making of the contract of sale are called
existing goods.
Example: If ‘Ramesh’ sells his Bike to ‘Suresh’ ,
believing to be in good condition but the bike is
actually not in good condition, no contract will arise.
Existing Goods
18. Specific goods are those goods which are identified
and agreed upon at the time of making the contract
of sale.
Specific Goods
19. It means goods identified in accordance with the
agreement after the contract of sale is made.
Ascertained Goods
20. It means goods that are defined by description or
even samples.
Unascertained Goods
21. It means goods to be manufactured or produced by
the seller after the making of the contract of sale.
Example: A contract to sell oil not yet pressed from
seeds in his possession, is a contract for the sale of
future goods.
Future Goods
22. These are goods, the acquisition of which by the
seller depends upon a contingency which may or
may not happen.
Example: Ram agrees to sell 100 boxes of apple to
Sham provided the lorry carrying the apple reaches
from Kashmir safely.
Contingent Goods