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Indian sales of goods act 1930

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Indian sales of goods act 1930 – More and less, every kind of business encloses the sale and purchase of goods as part of its transaction. Businessmen are often entering into a contract of sale to sell their commodities. All these sales are governed by the Sale of Goods Act 1930. It is one of the most important types of contracts under the law of India. People in business who deal in the transaction of goods on a regular basis must understand the important terms of this contract. This Write up will help you to know some of the important terminology used in the Sale of Goods Act 1930.

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  • This act describes a contract wherein the seller of particular goods transfers or agrees to transfer the goods to the buyer for some price.
  • On the first of July, 1930, this commercial law was formed when India was under the British Raj. This law had been based mostly on the Sale of Goods Act 1893 of Great Britain. At present, this act is applicable all over India except for J & K.
  • A contract of sale is a generic term which refers to both sale and agreement to sell as per section 2 of this law.
  • It is characterized by an offer to buy goods for a price or an offer to sell goods for a price and acceptance of the offer.

Important terms


A buyer is defined as a person who either purchases or agrees to purchase certain products, in section 2(1) and he appears as one of the parties in the contract of sale.


A seller is defined as a person who either sells or agrees to sell certain products in section 2 (13). He appears as one of the parties in the contract of sale.

So, we can say that it is not essential to transfer goods to be deemed as a buyer or a seller. Just by agreeing or promising to sell and buy goods, you become buyer and seller as per the contract of sale.


Goods are an important clause in the contract for sale described in section 2(7). it is merchandise or possession or moveable property, stock and shares, growing crops, grass, standing timber or the things that are attached to the land but are agreed to be severed before the sale.

Hence, we can say that goods are movable property barring money and actionable claims. They are classified into many categories as explained below.

Types of goods

Section 6 of the Sale of Goods act explains in detail all types of goods. Basically, there are three categories of goods:-

Existing goods

If the goods are present physically at the time of contract and the seller is in the legal position of the goods then it is termed as existing goods. Further, they are divided into 3 subtypes.

Specific goods

Specific goods are defined under section 2 (14).

They refer to goods that are identified and agreed to be transferred at the time of making the contract. for instance, P wants to sell a car of a certain model and year of manufacture and B agrees to buy the car. Here, the bike is a specific goods

Ascertained goods

These types of goods are not identified by law but by judicial interpretation. The good where the whole or part of the good is identified and marked for sale at the time of the contract is termed as ascertained Goods. These goods are earmarked for sale.

Unascertained Goods

The unascertained goods are not specifically identified for sale, at the time of the contract.

For example, there is a bulk of 1000 quinols of rice out of which 600 quinols are agreed to be sold. Here, the seller has an option to choose the goods from the bulk and is not specified.

Future goods

Future goods are the goods which don’t exist at the time of contract but are supposed to be produced, acquired or manufactured by the seller as per section 2(6). For example, A sells tables and B wants 500 tables of a specific design which A agrees to manufacture at a future date. Here tables are future goods.

Contingent goods

The definition of contingent goods appears in Section 6(2) of the Sale of Goods Act. Contingent goods are a kind of future good but it is dependent on the happening or the absence of certain conditions.

For instance, P has agreed to sell 100 apples from his farm to Q at a future date. Here, the sale depends on the fact whether the trees on P’s farm give a yield of 100 apples by the date of the contract.


Delivery of goods describes the process of transferring the possession of goods from one person to another as per section 2(2). The person who received the goods could either be the buyer or another person authorised by the buyer to receive the goods. There are three types of delivery of goods as given below:

Actual delivery

If the commodity is handed over straightly to the buyer or the person authorised by them, it is known as an actual delivery.

Constructive delivery

When the goods are transferred without any change in possession then it is a constructive delivery. Even after selling the goods, it means that the seller holds them as bailee for the buyer.

Symbolic delivery

If the goods are not delivered but a symbolic means of obtaining position is involved then that is called symbolic delivery for instance handing over the keys of a warehouse where the goods are stored is a symbolic delivery generally such delivery is done when the goods are heavy or bulky.

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