Every day people buy and sale different type of goods in the ordinary course of living. These buy and sale of goods is a type of contract which is governed by the sale of goods act, 1930. But do you really know, what is the exact meaning of goods under sale of goods act or definition of goods under the Sale of Goods Act,1930 and types of goods under the Sale of Goods Act,1930.
The Sale of Goods Act, 1930, herein referred to as an Act, which governs the sale of goods in the territory of India. But it doesn’t apply to the state of Jammu & Kashmir. This Act defines various terms which are contained in the act itself. We will discuss some of them in the process of knowing types of goods under the Sale of Goods Act, 1930.
As we discuss before buy and sale of goods is a contract between the buyer and seller. The people who buy the goods is called the buyer. Here Section 2(1) of the Sale of Goods Act, 1930 define the term buyer as-
‘‘Buyer” means a person, who buys or agrees to buy goods.
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For buy goods, it is essential that someone sale those goods. An interested buyer can buy any goods if someone is interested to sell those goods.
In general term, we can say the seller is the person who sells the goods. Sec 2(13) of the Sale of Goods Act, 1930 defines the term “Seller” as-
“A seller is someone who sells or has agreed to sell goods.”
Now after discussing the term “buyer” and “Seller” we will come on the topic, “types of goods under the sale of goods act, 1930.”
Here in the Sale of Goods Act, 1930 the term “Goods” is defined as-
- “Goods” includes every kind of movable property.
- Other than actionable claims and money.
- But, includes stocks, shares(after allotment), standing timber, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale shall be included in the definition of sale.
- Also includes water, gas, electricity, trademarks, patents, copyright, goodwill are all goods. In general, it is only the movables that form goods.
So we will elaborate this definition now.
“Transferable property” means any property which can be move from one place to another place or the property which is fixed to earth but which can be moved from one place to another place by uninstalling it in his original form. The original form is important.
For transfer of immovable property, there is a different act which is called Transfer of Immovable Property Act, 1882
The term goods exclude money but the interesting thing is that movable property includes old currency. Money itself cannot be subject to a sale.
The actionable claims are things which can be claimed by him by means of legal action.
Types of goods under sale of goods act, 1930
“Goods” under sale of goods act, 1930 has been classified into three main categories-
- Existing goods
- Future goods
- Contingent goods
Now existing goods has been further divided into three subcategories-
- Specific Goods
- Ascertained Goods
- Unascertained Goods
Now we will discuss all these types of goods under the Sale of Goods Act, 1930, one by one.
“Existing goods” are the goods which exist at the time of sale under the contract of sale. So when the buyer and seller of goods enter into the contract of sale, the goods must exist.
Here Section 6 of the Sale of Goods Act,1930 said that the goods which form the subject matter of the contract must exist and must be in the position of the seller at the time of contact of sale.
Here “existing goods” are sub divided into three-part-
“Specific goods” are those goods which are identified at the time of contract of sale and there is no chance of replacement or rare chance of replacement. These type of good or specifically get chose by the buyer with the consent of the seller.
Section 2(14) of the act define Specific Goods as “specific goods” means goods identified and agreed upon at the time a contract of sale is made.
Example 1 : one man enters into a pet shop and selects a dog to purchase it. This dog is called as specific goods.
Example 2 : If a man wants to buy any antic goods like a panting of any famous painter then this panting is specific goods which can’t be replaced by any other panting.
The term ascertained goods mean the goods which have been already got separated from the bulk. Ascertained goods are not defined by the law under the judicial interpretation.
Example: A man enters into a joy factory to buy 500 toys. In the factory, there were 5000 toys. Factory owner identifies and separates these 500 toys from the bulk. Now, these 500 toys will be called as Ascertained goods.
Unascertained Goods are those goods which have not beet be specifically identified or get separated from the bulk.
These types of goods always keep in bulk form or not specifically identified at the time of contract of sale e.g. goods in the godown.
Example: A man enters into a cement factory and expresses his intention to buy 1000 bags of cement. That time, when a man expresses his intention to buy 1000 bags of cement, there was 1 lakh cement bags in the factory.
Here the seller or buyer can’t be identified which cement bags are going to form the subject matter of contract.
But as soon as the seller, separate these 1000 cement bags which form the subject matter of a contract, will become Ascertained Goods.
“Future Goods” means the goods which to be produced or manufactures in future. Here are many products which are produced by the seller only on order by the purchaser. These goods are called “future goods”.
Section 2(6) of the Sale of Goods Act, 1930 defines the term “Future Goods” as “Future Goods” means goods to be manufactured or produced or acquired by the seller after the making of the contract of sale.
In the other word “Future Goods” means the goods which are not in existence at the time of contract of sale.
Example: Contact for modification of car in future.
“Contingent Goods” means goods which may or may not be, to or to not be delivered. Basically contingent goods are apposite of absolute goods. Contingent goods are a subpart of future goods. In the case of contingent goods seller doesn’t take any responsibility for the delivery of goods whereas in case of future goods seller take responsibility to deliver the goods at any cost. In case of future goods seller bound to deliver the goods but not in case of Contingent Goods.
Example: A potato chips manufacturing company contact with a farmer to supply 100 tons of potato to the company after production. Here the farmer agreed to supply the potato on some condition like, he delivers the potato of production of potato will be more than 150 tons. This is called Contingent goods because the production of potato is not certain.
This is all about the types of goods under the Sale of Goods Act, 1930. Now we will discuss some more important topic which relates to types of goods under the Sale of Goods Act, 1930.
Documents of the title of goods
In common word document of title of goods means any document which proves the possession, control or ownership of goods.
Here section 2(4) of the Sale of Goods Act, 1930 defines the word “document of title of goods” as a bill of lading, railway receipt, dock warrant, wharfingers’ certificate, warehouse keeper’s certificate, multimodal transport document, warrant or order for the delivery of goods and any other document or documents used in the ordinary course of business as proof of the possession or control of goods, or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented.
Every sale and purchase of goods is for consideration. Generally, this consideration is in the form of money or price.
Section 2(10) of the Sale of Goods Act, 1930 deal with the term price which means the money consideration for a sale of goods.
Quality of Goods
“Quality of goods” includes their state or condition (Section 2(12) of the Sale of Goods Act, 1930)
“Seller” means a person who sells or agrees to sell goods (Section 2(13) of the Sale of Goods Act, 1930)
“Specific goods” means goods identified and agreed upon at the time a contract of sale is made(Section 2(14) of the Sale of Goods Act, 1930)
Here is some important case law
Associated Power Co. v. R.T. Roy
The Calcutta High Court was held that electricity comes under the definition of ‘goods’ under section 2(7) of the Sale of Goods Act,1930 as well as the article 366 (12) of the Constitution of India. This proposition was affirmed in a Madras High Court case where the honourable judge held that electricity comes under the ambit of ‘goods’ because it is capable of being delivered, whether it is a tangible or intangible form of energy. The Law Commission of India in its 8th report proposed that water and electricity should come under the definition of ‘goods’ of this Act.
Sunrise Associates Vs. Government of NCT of Delhi.
In the verdict of Sunrise Associates v. Government of NCT of Delhi, the Supreme Court held that sale of a lottery ticket is an amount to a sale of an actionable claim. The conclusion of the Court was based on the reasoning that there was no difference between the right to win and right to participate in a lottery draw, it means the main motive of the purchase is the right to win not right to participate.
Thus both these rights (right to win and right to participate) are in futuro. As a result “lottery tickets” were excluded from the definition of “goods”.