SALE OF GOODS ACT, 1930

Section 5 : what is a contract of Sale

(1) A contract of sale is made by an Offer to buy or sell goods for a
price and the Acceptance of such offer. The contract may provide
for immediate delivery of the goods or immediate payment of
the price or both, or for the delivery or payment by instalments,
or that the delivery or payment both shall be postponed
(2) Subject to the provisions of any law in force, a contract of sale
may be made in writing or by word of mouth, or partly in
writing and partly by word of mouth or may be implied from
the conduct of the parties
 SALE OF GOODS ACT, 1930
Definition of Goods:
Section (7) : 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 severed before the sale or under the
contract of the sale

What are SPECIFIC, UNASCERTAINED and FUTURE GOODS?

Goods that are identifiable are Specific goods or ascertained goods
Goods with general descriptions but not separated from Bulk are
Unascertained goods
Goods that will come into existence in future are Future goods
 SALE OF GOODS SACT, 1930
The Sale goods Act determines when the ownership changes from
Seller to Buyer.

The owner is entitled to exclusive enjoyment of the goods. The

reverse is also true. The risk is also that of the owner

Moreover, only an owner can transfer ownership. Someone who is

not the owner cannot sell the goods

This also means that once the ownership is transferred to the buyer,
if there is breach of contract by buyer, the seller cannot clain
restoration of ownership and can only seek payment of the price
 SALE OF GOODS SACT, 1930

Ownership, Possession and Delivery

Ownership & possession are two different things.

Owner may have right of ownership but not possession & vice versa

For a sale Contract to be complete, not only should the ownership

get transferred to the buyer , the seller must also deliver the goods
to the buyer
 SALE OF GOODS SACT, 1930

Delivery

Section 2 (22) –delivery means voluntary transfer of possession from

one person to another

Section 33 elaborates:
Delivery of goods sold may be made by doing anything which the
parties agree shall be treated as delivery or which has the effect of
putting the goods in the possession of the buyer or of any person
authorised to hold them on his behalf
 SALE OF GOODS SACT, 1930

Transfer of goods :
Specific goods: Ownership transfers as intended by parties
Section 19: Property passes when intended to pass: (1) Where there
is a contract for the sale of specific or ascertained goods, the
property in them is transferred to the buyer at such time as the
parties to the contract intend it to be transferred

(2)For the purposes of ascertaining the intention of the

parties,regard shall be had to the terms of the Contract,the conduct
of the parties and the circumstances of the case ……………
 SALE OF GOODS SACT, 1930
Transfer of goods :

Unascertained goods: As and when the goods are ascertained

Section 18: Goods must be adcertained : Where there is a contract for sale
of unascertained goods, no property in the goods is is transferred to the
buyer unless and until the goods are ascertained

Future goods:
In the case of future goods, if the contract is silent on transfer of
ownership, ownership passes only when the goods are appropriated to
the contract ( agreed between the buyer & seller what are the specific
goods)