Sale Of Goods Act 1930

1. Presented By: Vimal Dhar
SALE OF GOODS ACT

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

5. Types Of Sale Of Goods

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

9. Essentials Of Contract Of Sale
Of Goods

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

15. Classification Of 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

17. Types Of 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