The Sale of Goods Act was passed in India in 1930 to regulate transactions related to the sale and purchase of goods. Previously, these transactions were governed by the Indian Contract Act of 1872. In 1963, the word "Indian" was removed from the act. The Sale of Goods Act defines key terms like goods, price, buyer, and seller. It also outlines essential elements for a valid contract of sale, such as competent parties, agreement on goods and price, and distinction between buyer and seller. The act distinguishes conditions from warranties and clarifies the rights and duties of buyers and sellers.