Sales of Goods Act of 1930

Dr. Vilas Kulkarni

Coverage of the Act

Contract of Sale of Goods. Meaning. Sale of Goods & Agreement to Sell. Essentials of Contract of Sale. Formalities of Contract of Sale. Sale & Hire Purchase Agreements

Introduction
An Act to define and amend the law relating to the sale of goods It extends to the whole of India except the State of Jammu and Kashmir.

It came into force 1st July, 1930

Definitions.
Buyer" means a person who buys or agrees to buy goods. 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 sale or under the contract of sale
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Introduction
It is central Government act. It is applicable to all the state. Except state of J & K. originally this act was known as Indian sales of goods act but in 1963 Indian word was dropped by which the contract act 1972s provision related with contract of sales of goods act was added while any goods are sold or not to consumer as per 1930s agreement. It is a commercial law which is passed and applicable to all the goods which are movable in nature & not for immovable goods/ properties

Continued
Delivery" means voluntary transfer of possession from one person to another. Price" means the money consideration for a sale of goods; Property" means the general property in goods, and not merely a special property

Continued
Quality of goods" includes their state or condition; Seller" means a person who sells or agrees to sell goods; Specific goods" means goods identified and agreed upon at the time a contract of sale is made

Goods { Sec-2(7) }

Goods: Include every kind of movable property excluding actionable claims and money. Goods may be existing or future goods. Existing goods may be specified or unascertained goods. Specified goods are identified goods. Un-ascertained or generic goods are indicated by description and not separately identified. Goods may be also classified as future goods, that is, to be manufactured after the making of the contract.

B) contract of sales of goods Sec 2(6)

It is a written contract signed by both the parties i.e. buyer and seller for transferring or agreed to transfer the legal rights of property of goods to buyer for a agreed price. It can be absolute or conditioned Def. it is a written document which communicate to all that the legal rights of goods are transferred from seller to buyer. Thus through this agreement legal rights of seller are ceased to exist and are transfer legally to new owner.

The contract of sale of goods includes Sale & Agreement to sell

Agreement to sell Thus under contract of sale the property{sec.2(11)} in goods is immediately transferred from seller to buyer. e.g. Today X has sold 100 bags of wheat to Y in consideration of Rs. 700/per bag. It means through the contract of sales of good Y become absolute owner of properly of X and legal rights are transferred from X to Y for Rs. 70000/-

c) Sale & Agreement to sell

Sale & Agreement to sell When property in goods is physically transferred from seller to buyer at once it is called sale. 2) Agreement to sell becomes sale when time and terms & conditions of agreement are followed in both. e.g. when X agrees to Y that he will sell to B 10 bags of rice on 21st Jan for Rs 200/- per bag [ Rs 2000/-] on the terms that B will pay an advance to A 50% at initial while placing order and remaining 50% at actual on 21 Jan this is called an agreement to sell and actual terms are followed and legal rights transferred from X to Y. It is called sale at actual taken place.

Essential; of contract of sale

A) Two parties a) Seller and buyer i.e. buyer means the person who buys or agrees to buy any good from other person and seller means the person who sales or agrees to sale the goods. B)Goods [subject matter of contract] D Every kind of the movable property or goods which includes stock and shares, growing crops, grass or parts attached to earth by human which agreed to be served before sale. C C)Transfer of property i.e. transfer of legal ownership from seller to buyer. D D)Monitory consideration (price) when goods are exchanged to goods called as barter exchange and not called sale of goods.

When goods are transferred by one person to another without any consideration it is also not called sale of goods but it is called as gift. When the consideration/price is linked during shifting of rights from seller to buyer it is called as sale. When goods are exchanged partly for goods and partly for money it is called as contract of sale.

E) Essential elements of valid contract

the contract of sale whether absolute or conditioned must be followed as per legal terms between both and acceptable to both parties. F)A contract of sale includes sale as well as agreement to sell

Formalities of contract of sale

The contract of sale of goods it is just like offer legal contract one of the type of contract. 1.offer from one party must be there 2. acceptance to that offer must be there 3. it can be verbal or on written from or partly oral or in writing. 4. the offer and acceptance to offer must be related to only movable goods. 5. immediate payment or delivery is not important it will depend up on terms contract of sale.

Goods section 2 (7)

Existing goods specific Ascertained unascertained / generic goods

Future goods Continental goods Existing goods Are those goods, which are owned and one in possession of seller at time of sale. Specific goods which is identified by buyer and seller together at the time of contract of sale is made.

Ascertained goods the goods [specific] becomes ascertained goods subsequent to the formation of contract of sale Generous/non Ascertained The goods which are not defined specifically in any contract. It can begoods Future unidentified in nature eg. Goods of lot The goods which in due course of time are to be manufactured/ produced/ acquired. The seller does not posses the goods at actual at the time of contract of sale the contract of sale is also not made as goods physically is not into existence. Contingent goods It is one another type of future good where the acquisition of goods to seller depends upon some uncertainly.

Sale & Hire Purchase Agreement

a) A hire purchase agreement is another type of contract. Here in this seller agrees to transfer the property in the good to hire purchaser on payment of certain sum in certain no of instilments b) if hire purchasers failed to pay remaining installment seller can terminate the contract and can take away goods sold under hire-purchase agreement. c) the installment already paid by hire purchaser are considered as use of goods. d) the hirer needs to return the goods back as not able to maintain terms of contract. e) it is not called true contract but only bailment HPA= Bailment + Agreement To Sell