The Sale of Goods Act was passed in 1930 to regulate contracts for the sale of movable property in India. It defines key terms like buyer, seller, goods and distinguishes between existing goods, future goods, and contingent goods. For a valid contract of sale, there must be two parties (the buyer and seller), goods whose ownership is transferred, an agreed upon price, and the transfer of ownership from the seller to the buyer. The Act governs all transactions that meet these essential elements.

1. SALE OF GOODS ACT
A Presentation
by
A.SUSITRA
MBA(Tourism Management)
Anna University

2. Sale of Goods Act , 1930
SUSITRA A

3. HISTORY
• The law relating to sale and purchase of goods, prior to 1930 were dealt by
the Indian Contract Act, 1872.
• In 1930, a separate Act known as the Sale of Goods Act is passed.
• It is a contract whereby the seller transfers or agrees to transfer the title
(ownership) in the goods to the buyer for consideration.
• It is applicable all over India, except Jammu and Kashmir.
• The goods are sold from owner to buyer for a certain price and at a given
period of time.
• The name Indian is removed from the act with effect from 23 September
1963 hence the act name is now Sale of Goods act 1930.

4. DEFINITION
Buyer
A person who buys or agrees to buy goods.
Seller
A person who sells or agrees to sell goods.
Goods
Every kind of movable property other than actionable things and money.
Existing goods
Goods which are in existence at the time of contract of sale.
Future goods
Goods which are to be manufactured /produced by seller after making contract of sale.
Specific goods
Goods which are identified & agreed upon at the time of contract of sale has been made.

5. GOODS
• Goods are defined to mean every type of movable property other than actionable
claims and money.
• The term comprises stock and shares, rising crops, grass, and things attached to,
or forming part of the land which are agreed to be served before sale or under the
contract of sale.

6. Existing Goods
• As per Section 6 of the Act, existing goods are those goods which are owned or
possessed through the seller at the time of contract of sale.
• The seller is either the owner of goods, or he is in possession of goods.
• For instance A, a manufacturer of fans, sells a fan to B. It is a contract of sale of
existing goods because A owns the fan.

7. Specific goods
• These are the goods which are recognized and agreed upon through the parties at
the time a contract of sale is made.
• For instance, a specified watch, ring, or a car.

8. Ascertained goods
• Goods identified subsequent to the formation of the contract of
sale. The terms ascertained and specific, are commonly used for
same kind of goods.
• Ascertained goods are those goods which are identified in
accordance with the agreement after the contract of sale is
made.
• For example: You go to a vegetable market and demand 2kgs of
tomatoes. When the seller appropriates 2kgs of tomatoes in
accordance with the agreement, they become ascertained. If
you find some defects in it, you can replace it.

9. Unascertained goods
• The goods, which are not separately identified or ascertained at the time of the
making of the contract, are known as ‘unascertained goods.’
• If A agrees to sell to B one bag of sugar out of the lot of one hundred bags lying in
his godown, it is a sale of unascertained goods because it is not known which bag is to
be delivered.
• In a contract for the sale of 100 pieces of chairs, the seller has to deliver 100 pieces of
chairs that answer the contract description. If there is no specific description, then the
seller may deliver any kind of chairs.

10. Future goods
• Goods to be manufactured, produced or acquired after making of the contract are
called future goods.
• Example: A computer manufacturer contracted to sell 100 computers to Rahul.The
computers were yet to be manufactured.This is an agreement of future goods not
in the possession of seller at time of making contract.

11. Contingent goods
• Goods, the acquisition of which by the seller ,depends upon an uncertain
contingency are called ‘contingent goods’. They are also a type of future goods.
• Example: ‘A’ agrees to sell 100 units of an article provided the ship which is
bringing them, may or may not reach the port safely. This is an agreement for the
sale of contingent goods.

12. ESSENTIAL ELEMENTS OF A CONTRACT OF SALE
Two Parties
• There must be two parties to the contract of sale viz., seller and buyer.
• In a contract of sale, the ownership of goods has to pass from one person to another.
• Hence the seller and the buyer must be different persons because one person cannot be
both the buyer and the seller.

13. Goods
• There must be some goods the property in which is or is to be transferred from the
seller to the buyer.
• The goods which form the subject-matter of the contract of sale must be movable.
• Transfer of immovable property is not regulated by the Sale of Goods Act.

14. Price
• Price is an essential ingredient for all transactions of sale and
in the absence of the price or the consideration, the transfer is
not regarded as a sale.
• The transfer by way of sale must be in exchange for a price. It
has been held that price normally means money.
• The price can be paid fully in cash or it can be partly paid and
partly promised to be paid in future.
• The price can be fixed by the agreement between the parties
before the conveyance of the property.

15. Transfer of Ownership
• In a contract of sale, ownership over goods has to be
transferred to the buyer by the seller or there should be
an agreement to transfer the ownership by the seller to
the buyer.
• The property in the goods means “all ownership rights”
of the goods. In a contract of sale, all the ownership
rights of the goods must be transferred by the seller to the
buyer.
• However, the physical delivery of the goods is not
required.

16. EXAMPLE
• For e.g., A agreed to buy a new two wheeler from B an agent for Rs.25,000. A paid the price
and got the two wheeler registered in his name and the registration book was delivered
by B to A. This is a valid contract of sale because the ownership of the two wheeler has been
transferred to A.