Types of Goods

Table of Contents

Sales of Goods Act

DEFINITIONS

Section 2 of the Sale of Goods Act, 1930 defines the terms which have been frequently used in the Act, which are as follows –

Goods

means every kind of moveable 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; [Sub Section (7)].

Existing or future goods

The subject matter of contract must always be goods. The goods may be existing or future goods Section 6).

Existing goods

Goods which are owned or possessed by the seller at the time of making the contract of sale are called existing goods

The existing goods may be:
Specific goods: goods identified and agreed upon at the time of making of the contract of sale.
Ascertained goods: Goods identified subsequent to the formation of the contract of sale is known as ascertained goods.
Unascertained or generic goods: Goods which are not specifically identified by the buyer, but are contracted on the basis of description.

EXAMPLE

Sunny goes to car Centre to purchase a car. Dealer has 20 models of different companies in his shop, these different models shall be called Unascertained goods .
Now Sunny Likes cars of different models of particular company now these models are Ascertained goods
Then Sunny selected a particular car of TATA company now this car is a specific good

Future Goods –

Those goods which a seller does not possess or own at the time of the contract. It is to be manufactured or produced or acquired by the seller after making the contract of sale.

Example

C agrees to buy the entire production of cotton that yield in D’s farm at the rate of RS 1000 per quintal. This is an agreement of sale of future goods not in possession of the seller at the time of contract, they can become the subject matter of an agreement to sell only and not of sale.

Contingent Goods

Goods the acquisition of which by the seller depends upon a contingency that may or may not happen [(Section 6(2)].

Example

P contracts to sell 50 pieces of particular article provided the ship which is bringing them reaches the port safely. This is an agreement for the sale of contingent goods.