The sale of goods is the most reappear transaction in every kind of business. Most of the time businessman get easily involved in the sale of goods and enter in the contract of sales. And these contracts are ruled by Sales of Good Act 1930.
The term contract of sale is defined under the section 4(1) of the Sale of Good act 1930, it says “A 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.”
As we know that in contract of sale there is a buyer and a seller. Buyer means a person who buys the goods or agreed to buy goods and the seller means a person who is ready to sell or agreed to sell their goods. Here we use the term good that mean a moveable property which we give to buyer in exchange of money or any other moveable property.
Goods are classified into different type or categories when the good is transferred from seller to buyers.
Existing Goods or Future goods is defined in section 2(6) of Sale of Goods Act it says “goods to be manufactured or produced or acquired by the seller after the making of the contract of sale”.
Specific or Unascertained Goods is defined un section 2(14) of Sale of Goods Act it says “goods identified and agreed upon at the time a contract of sale is made”. “When the goods are not same that we consent on the time of contract that is Unascertained Goods.” Vijay Minerals Pvt. Ltd vs Bikash Chandra Deb is the famous case law of specific goods.
Price is one another important element in the contract of sale that also defined in Sale of Goods Act in section 2(10) that says” the money consideration for a sale of goods”. Price is the money that we fixed at the time of the contract of sales on which seller agreed to give their goods to the buyer on a valuable price. Aluminium Industries Ltd vs Minerals and Metals Trading is the famous case law for the party mutually decide the price of good. But sometime the price is left for the future.
Sale of goods does not advice the observance of any formalities for creating a contract of sale because it provided in the implied form or in the express form of contract (in implied forms party communicate only in oral form vs in express form party communicate in both written as well as oral)
Through the course of the full article, I have tried to give some important points related to the Sale of Goods Act 1930. To conclude, it can be observed certain terms in this article that is important for contract of sale like a buyer, a seller, types of good etc.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.