Synopsis On Sale of Goods Act

SYNOPSIS ON SALE OF
GOODS ACT, 1930
WHAT IS IT?
This law establishes a contract in which the seller of specific items sells those products to the buyer
or agrees to do so in exchange for a fee. When India was ruled by the British Raj, this mercantile
statute was established on July 1st, 1930.
OBJECTIVES
Sale of Goods Act involves objectives such as achieving a balance between the rights, obligations,
claims, and expectations of purchasers and sellers when property is transferred from one person to
another.
PRICE
Price, which must take the form of money, is the consideration for the sale of things. Without
consideration, it will be a gift rather than a sale.
GOODS
The items must have some sort of property that can be transferred from seller to buyer. The term
"goods" refers to any type of movable property, including shares of stock, growing crops, grass, and
anything attached to or constituting a portion of the land that are agreed to be severed before sale
or under the terms of the sale contract.
Types of Goods Under Sale of Goods Act 1930

1] Existing goods are those that are physically present at the moment of the transaction and that
the seller is legally in possession of. They can also be categorised into one of three groups:
{a} Specific goods are those that are identified and agreed to be transferred at the moment the
contract is made. They are defined under section 2(14). For instance, B agrees to purchase a bike
that A wants to sell that is of a specific model and year of manufacture. In this case, the bike is a
unique good.
{b}Ascertained Goods - Rather than being defined by statute, this category of goods is determined
by judicial interpretation. Any good where the whole or portion of the good is identifiable and
marked for sale at the moment belongs to the category of determined items. This merchandise is
intended for sale.
{c} Unsanctioned or Unascertained Goods - Those commodities that are not clearly identified for
sale, at the time of the transaction, fall under the category of unsanctioned goods. For instance, 500
of the 1000 quinols of wheat in the bulk have been agreed to be sold. In this case, the seller is left to
choose the goods from a large selection.
2. Future Goods – The definition of future goods appears in section

2(6). The goods which do not exist at the time of contract but are
supposed to be produced, acquired, or manufactured by the seller
are called future goods. For example, A sells chairs and B wants 300
chairs of a specific design which A agrees to manufacture at a future
date. Here chairs are future goods.
3. Contingent Goods – You can find the answer to what is contingent
goods in section 6(2) of the Sale of Goods Act. A contingent good is a
kind of future good, but it is dependent on the happening (or the
absence of) certain conditions. As an example, X has agreed to sell
100 mangoes from his farm to Y at a future date. But this sale
depends on the fact whether the trees in X’s farm give a yield of 100
mangoes by the date of the contract.
SIGNIFICANT PROVISIONS UNDER SALE OF GOODS
ACT
1]Sale and Agreement to Sale: Sale and agreement to sale are defined in Section 4.
When a transaction is agreed upon, the ownership of the goods will pass either
immediately or when a certain set of requirements have been met.
2] Condition and Warranty: The Sale of Goods Act of 1930 covers condition and
warranty provisions in sections 11 to 17. The basis of the entire contract is the
condition, and the aggrieved party has the right to treat the contract as rejected in the
event of a breach.
An additional clause that is collateral to the contract's primary goal is the warranty. In
the event of a warranty breach, the harmed party may pursue damages rather than
seeing the contract as repudiated.
What happens if a contract of sale or an agreement to sell is

broken?
In essence, the other party has the right to sue for damages for breach of contract if
one party fails to complete the sale. The seller is obligated to pay the customer any
additional, justified expenses in the event of a default. The opposing party could also
make an effort to make the wrongdoer adhere to the terms of the agreement. From the
buyer's perspective, it is typically advisable to obtain the sale agreement.
EFFECTS OF PERISHING GOODS ON

CONTRACT OF SALE
1] Specific Products Perishing Prior to Sale
Agreement: If the sale agreement relates to specific goods, and if they have already
perished or been damaged prior to the agreement but the seller was unaware of this, the agreement
is void .
2) Specific Goods Dying After Sale Agreement, before Sale
Contract: If the specific goods die or are damaged without either the seller or the buyer's
fault after the sale agreement but before the sale contract, the contract is void.
HOW ARE PRICE OF A PRODUCT FIXED?
1}Price is fixed by the mutual consent of buyer and seller.
2}Price maybe fixed by the course of dealings between the buyer and
3} Price maybe fixed according to the manner provided in the contract.
4} Fixation of price by third party
CONCLUSION
The Sale of Goods Act, a piece of pre-independence legislation, is
largely incompatible with current trade laws. If India updates its laws
in accordance with the 1980 United Nations Convention on Contracts
for the International Sale of Goods, it will be simpler and better to
deal with private international law and, in the event of a conflict of
laws, it would be preferable to use internationally accepted
legislation while taking exports and imports into account. The Sale of
Goods Act hasn't been used very much in recent years. The
provisions' inability to address the issues of the modern day may be
one of the causes.

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SYNOPSIS ON SALE OF

GOODS ACT, 1930

Types of Goods Under Sale of Goods Act 1930

2. Future Goods – The definition of future goods appears in section

What happens if a contract of sale or an agreement to sell is

EFFECTS OF PERISHING GOODS ON

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