Contingent Goods
According to Section 6(2) of the act, “When the acquisition of goods is dependent upon an uncertain contingency or an uncertain event, it is called Contingent Goods.” Contingent goods are deemed to be an agreement to sell and not a considered sale, as in the case of future goods the property in goods is not transferred to the buyer at the time of making a contract.
For example, Kartik contracts with Murli that he will buy 100 units of umbrellas if it rains in June. Here, the agreement is based on a contingency, and it is a case of Contingent Goods.
Kinds of Goods under the Sale of Goods Act, 1930
Almost every type of business somewhere or the other involves the sale and purchase of goods as part of its business operation. In some cases, sales and purchases are made to support the main business framework and in some cases, sales and purchases are the main business. Businesses often enter into a contract of sale to sell their commodities to other parties. The Sale of Goods Act, 1930 is an umbrella act that governs all forms of sales. A sale is a general contract wherein the seller or owner of particular goods transfers or agrees to transfer the goods to a buyer at an agreed price.
As per Section 2 of the Sale of Goods Act, 1930, “a contract of sale is a term that includes both sale and agreement to sell and is characterized by an offer to buy goods for a price or an offer to sell goods for a price, and acceptance of the offer.”
Geeky Takeaways:
- Every individual, whether a businessman or a common man, who deals in the transaction of goods regularly, must understand the important terms of the Sale of Goods Act, 1930.
- India is one of the largest economies that has adequate measures to ensure the safety of its business.
- The sale of commodities is one of the most important types of contract under the law in India.
- This act was passed because the provisions of the contract act were found to be inadequate to deal with new situations that were arising due to an increase in mercantile situations.
Table of Content
- Kinds of Goods under Sale of Goods Act, 1930
- 1. Existing Goods
- 2. Future Goods
- 3. Contingent Goods
- Effect of Perishing of Goods
- Conclusion
- Frequently Asked Questions (FAQs)
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