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Before The Sales of Goods Act, transactions

relating to sales and purchase of goods were

regulated by The Indian Contract Act 1872.
The Indian Sales Of Goods Act was passed in

1930 and sections 76 to 123 were repealed

from The Indian Contract Act.

 It came into force on 1st July 1930 and w.e.f

22nd Sept. 1963 the word Indian was removed

and now the present act is called The Sales Of
Goods Act 1930.
This act extends to whole of INDIA except the

state of Jammu n Kashmir.

MORTAGAGE

(which is dealt with under the Transfer of

Property Act,1882)
PLEDGE
(which is dealt under The Contract Act,1872)
This Act deals with goods but not with:a) Movable property e.g actionable claim or
money
b) Movable property other than goods
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According to Section 4(1) of The Sales of Goods

Act,1930.
contract of sales of goods is a contract
whereby the seller transfer or agrees to
transfer the property in goods to the buyer
for a price
Contract of Sale is a generic term ,which
includes both sales and an agreement to sell
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BUYER AND
SELLER

ESSENTIAL
ELETMENTS OF
VALID CONTRACT

PRICE

GOODS

TRANSFER OF
PROPERTY

BUYER
means a person who buys or agrees to buy
good.[Section 2(1)]
SELLER
means a person who sells or agrees to sell the
good.[Section 2(13)]

A person cannot be a buyer as well as a seller

as a person cannot buy his own goods

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GOODS means every type of movable

property other than actionable claim n
money but it can include stock and
shares,crops,lands etc.

ACTIONABLE CLAIM:- It means which can be

enforced through the courts of Law, e.g. debt due.

MONEY:- means the legal tender i.e. the currency

of the country but not old coins coins.

PROPERTY means the general property in

goods, and not merely a special property.

General property in goods means ownership

of the goods

Special property on the goods means

possession of the goods
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Thus, there may be either a transfer of

ownership of goods or an agreement to
transfer the of the goods. The ownership may
transfer either immediately on completion of
sale or something in future in agreement to
sell.

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For every sale or purchase their must be a price of

the goods.
PRICE means the MONEY CONSIDERATION for
the sale of goods.
When there is no consideration,it amounts to
gift and not sale
ii. However , the consideration may be partly in
money and partly in goods because the law
does not prohibited as such.
i.

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Essential elements of a valid contract as

specified under Section 10 of Indian Contract
Act,1872 must also be present.
Offer and Acceptance
b) Delivery and Payment
c) Express or Implied
a)

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Under Section 4(3) the Contract of Sale Includes:1)

2)

SALE:- Sale means where the ownership in

goods is transferred.

AGREEMENT TO SELL :-Agreement to sell

includes where the transfer of ownership in
goods is to take place at a future time or subject
to the fulfillment of some condition.
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S.No

BASIS

SALE

AGREEMENT TO SELL

1.

Transfer of
ownership

Transfer of ownership of
goods takes place
immediately.

Transfer of ownership of
goods takes place in future
times.

2.

Executed or
Executory

It is an executed contract.

It is an executory contract
because something
remains to happen.

3.

Conveyance of
Property

Buyer gets the right to

enjoy the goods against
whole of the world. It
creates jus in rem(Right
against property)

Buyer does not get such

right to enjoy the goods. It
only creates jus in
personam (Right against
person)

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4.

Transfer of Risk

Transfer of risk* of loss of

goods takes place
immediately as the
ownership is been
transferred. As a result in
case of destruction of
goods, the loss shall be
beared by the buyer.
(Risk*-Risk follows
ownership)

Transfer of risk of
loss of goods does
not takes place
because the
ownership is not
transferred. As a
result, in case of
destruction of goods
the loss shall be
borne by the seller.

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U/s 2(7) GOODS MEANS

GOODS means every type of movable
property other than actionable claim n
money but it can include stock and
shares,crops,lands etc.

ACTIONABLE CLAIM:- It means which can be enforced

through the courts of Law, e.g. debt due.
MONEY:- means the legal tender i.e. the currency of the
country but not old coins
IMMOVABLE PROPERTY
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EXISTING GOODS
means the goods ,which are owned and
possessed by the seller at the time of contract
of sale.
Existing goods are of 3 types:
a) Specific goods
b) Ascertained goods
c) Unascertained goods
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FUTURE GOODS

means goods to be manufactured or produced

or acquired by the seller after the making of
the contract of sale. There is an agreement to
sell only.
For Example:-X will sell the goods to Y all the
crops to be grown at Haryana in his farm.
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CONTINGENT GOODS
means those goods,acquition of which by the
seller depends upon a contingency, which
may or may not happen.

For example:-X agrees to sell to y all the

crops to be grown at Zs farm in Haryana
during the year 2007 season for sum of 1 lakh
rupees,if Z sells the crops.
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