Future Goods

Kinds of Goods under the Sale of Goods Act, 1930

According to Section 2(7) of the Sale of Goods Act 1930, Goods 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 separated from the land before a sale or under the contract of sale”. The term Goods includes tangible and intangible goods like goodwill, copyrights, patents, trademarks, etc. For goods even stock and shares, gas, steam, water, electricity, and decree of the court are also included in the term goods. To sum up, goods means:...

1. Existing Goods

According to Section 6 of the Sales of Goods Act, 1930, “Existing goods are those goods that exist at the time of making a contract of sale or in other words these goods are physically present at the time of contract.” Existing goods are owned/acquired or have the seller at the time of entering the contract of sale. There can be three distinctions in existing goods:...

2. Future Goods

According to Section 2(6), “Future goods are those goods that are to be manufactured, produced or acquired by the seller after entering the contract of sale.” These are the goods that do not exist at the time of the contract of sale and will be manufactured/acquired/produced as per the description of the contract. It is to be noted that a contract for the sale of future goods is in all cases an agreement to sell. It is never considered an actual sale because a person cannot transfer goods that do not exist....

3. 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....

Effect of Perishing of Goods

1. Goods Perishing before making of Contract: It is established under Section 7 of the Sales of Goods Act, 1930. In the case of a contract for the sale of specific goods, if at the time when the contract was made, the goods perish or get damaged without the knowledge of the seller, and they fail to have the same characteristics or description as it was mentioned at the time of contract, then the contract will be void....

Conclusion

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. The Sales of Goods Act, 1930 specifies all rights and duties of the seller and other provisions which are of major prominence. The Sales of Goods Act is centered around the contract of sale of goods, where the goods have been defined as “Goods 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 separated from the land before sale or under the contract of sale.”...

Frequently Asked Questions (FAQs)

1. What do Goods mean?...