The Sale of Goods Act, 1930 defines and regulates contracts for the sale of goods in India. It was enacted on March 15, 1930 and came into force on July 1, 1930. The key elements of a contract for sale under the Act are: 1) there must be a seller and buyer who agree to the sale, 2) there must be goods involved in the transaction, and 3) there must be a price or consideration given. For a valid sale, the ownership of the goods must also be transferred from the seller to the buyer. A sale is considered an executed contract, while an agreement to sell involves the future transfer of goods contingent on certain conditions.

1. The Sale of Goods Act,
1930

2. The Sale of Goods Act, 1930
LEARNING OBJECTIVE
• To understand the requirement of the act
• To understand the process of enactment
• To learn basic definition of Sale and Agreement to
sell

3. The Sale of Goods Act, 1930
Enacted on 15th March, 1930 and it has
come into force on the 1st day of July, 1930
An Act to define and amend the law relating
to the sale of goods
This is a specific type of CONTRACT- known
as Sale of Goods

4. Contract of Sale
Section 4 defines a contract of sale
as “a contract whereby a seller
transfers or agrees to transfer the
property in goods to the buyer for a
price”

5. SELLER AND BUYER
There must be a seller as well as a
buyer.
‘Buyer’ means a person who buys or
agrees to buy goods[Section 29(10)].
‘Seller’ means a person who sells or
agrees to sell goods [Section 29(13)].

6. Goods
There must be some goods. ‘Goods’
means every kind of movable property
other than actionable claims and money
includes stock and shares, 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[Section 2(7)].

7. Transfer of property
Property means the general property in goods, and not
merely a special property[Section 2(11)].
General property in goods means ownership of the
goods.
Special property in goods means possession of goods.
Thus, there must be either a transfer of ownership of
goods or an agreement to transfer the ownership of
goods. The ownership may transfer either immediately
on completion of sale or sometime in future in
agreement to sell.

8. Do you know
the name of
this system?

9. What is this
?

10. Price
There must be a price.
Price here means the money consideration
for a sale of goods [Section 2(10)].
When the consideration is only goods, it
amounts to a ‘barter’ and not sale.
When there is no consideration, it
amounts to gift and not sale.

11. Essential elements of a valid contract
In addition to the specific essential
elements as mentioned in last slides, all
the essential elements of a valid contract
as specified under Section 10 of Indian
Contract Act,1872 must also be present
since a contract of sale is a special type
of a contract.

12. SALE AND AGREEMENT TO SELL
Sale
•Where under a contract of sale, the property
(ownership) in the goods is transferred from
the seller to the buyer, it is called a sale.
•Thus, sale takes place when there is a transfer
of ownership in goods from the seller to the
buyer.
•A sale is an executed contract

13. SALE AND AGREEMENT TO SELL
Agreement to sell
•Agreement to sell means a contract of sale
under which the transfer of property in
goods is to take place at a future date or
subject to some conditions thereafter to be
fulfilled