Sale of Goods Act - 1930 - Introduction, Contract of Sale of Goods, Goods Meaning and Classroom Notes

Sep 17, 2026

Uploaded by Ezra

The content explains the Sale of Goods Act, 1930, tracing its origin from the Indian Contract Act, 1872, and describing its applicability across India (excluding Jammu & Kashmir) and its commencement on 1 July 1930. It defines a contract of sale under Section 4(i), lists essential elements, and explains “goods” under Section 2(7), including movable property and exclusions. It also covers classroom-style classifications of goods and compares sale with agreement of sell, bailment, contract for work and labour, and hire purchase, concluding with effects of perishing before and after agreement.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages45

Reading Time1 h 53 min

AccessFree to download

Introduction

Contract of Sale of Goods

Essential Elements

Goods - Meaning

Classroom Notes

Types of Goods

Differences between Sale and Agreement of Sell

Differences between Sale and Bailment

Differences between Sale and Contract for Work and Labour

Differences between Sale and Hire Purchase Agreement

Effect of Perishing of Goods

Goods perishing before making a contract

Goods perishing after agreement to sell

SALE OF GOODS ACT, 1930 10 INTRODUCTION It is one of the special types of contract. Initially, it was the part of the Indian Contract Act, 1872. Later it was deleted and a separate sale of Goods Act was passed in 1930. It came into force on 1st July, 1930. It extends to whole of India except the State of Jammu & Kashmir. CONTRACT OF SALE OF GOODS As per Section 4(i) of the Sale of Goods Act, 1930, Contract of sale of Goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. Essential Elements: - There must be atleast two parties. (Bilateral Contracts) - The subject matter of the contract must be goods. - A price in money should be paid or promised. - A transfer of property in goods from seller to the buyer must take place. - It must be absolute or conditional. - All other essentials ofa valid contract must be present. GOODS-MEANING As per Sec 2(7), it means every kind of movable property other than actionable claims and money; and 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 contact of sale. - Money means current money and it includes rare and old coins. - Actionable claim means what a person cannot make a present use of or enjoy, but can recover it by means of a suit or an action. Thus, a debt due to a man from another is an actionable claim and cannot be sold as goods, although it can be assigned. Under the provisions of the Transfer of Property Act, 1882, goodwill, trade marks, copyrights, patents are all goods, so is a ship. As regards water, gas, electricity, it is doubtful whether they are goods. CLASSROOM NOTES TYPES OF GOODS - Existing Goods: It means such goods which are in existence at the time of the contract of sale i.e. owned or possessed by the seller. Examples: - Specific or Ascertained Goods: It means goods identified and agreed upon atthe time the contract of sale has been made. Examples: - Generic / Unascertained Goods: It means the goods which are not specifically identified but are indicated by description. Examples: - Future Goods: It means goods to be manufactured or produced or acquired by the seller after making the contract of sale. Examples: - Contingent Goods: It means the goods the acquisition of which by the seller depends upon a contingency which may or may not happen. Examples: DIFFERENCES BETWEEN SALE AND AGREEMENT OF SELL DIFFERENCES BETWEEN SALE AND BAILMENT | | Sale | Agreement of Sell | | --- | --- | --- | | 1. | It is an executed contract. | It is an executory contract. | | 2. | Property in goods are transferred from seller to buyer when the contract is made. | Transfer of property in goods takes place at some future date. | | 3. | Seller cannot resell the goods as the property is with the buyer. | Seller can further resell the goods as the property in good remains with him. | | 4. | Risks passes to the buyer, as he becomes the owner. | Risks is with the seller as he remains the owner. | | 5. | Breach on part of buyer, seller can sue for the price and damages both. | Breach on part of buyer, seller can sue for damages only and not for the price. | | 6. | Sale is contract plus conveyance. | It is pure and simple agreement. | | 7. | In this, if goods are destroyed then loss will be of Buyer. | In this, if goods are destroyed by accident, loss will fall on seller. | | | Sale | Bailment | | --- | --- | --- | | 1. | Property in goods is transferred from seller to buyer. | There is only transfer of possession of goods from bailor to bailee. | | 2. | Consideration is the price in terms of money. | Consideration may be gratuitous or nongratuitous. | 3. Buyer may use the goods in any way Bailee can use the goods only according to he likes. the bailor’s direction. DIFFERENCES BETWEEN SALE AND CONTRACT FOR WORK AND LABOUR DIFFERENCES BETWEEN SALE AND HIRE PURCH

FAQs

What is a contract of sale of goods under the Act?

A contract of sale of goods is a contract where the seller transfers or agrees to transfer the property in goods to the buyer for a price.

What qualifies as “goods” under Section 2(7)?

“Goods” means every kind of movable property other than actionable claims and money, and it includes stock and shares, growing crops, grass, and things attached to land that are agreed to be severed before sale.

What is the effect when specific goods perish before making the contract?

If specific goods perish before the contract is made without the seller’s knowledge, the contract is void; if the seller knew and still entered the contract, he is estopped from disputing it.

Sep 17, 2026

Uploaded by Ezra