lecture-15 - SUBJECT MATTER OFLESSON 15: ACT, 1930 AND...

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Learning Outcomes After reading the lesson, you should be able to know: · Subject matter of Contract of Sale · Kinds of Goods · Perishing of Goods · Fixation of Price · Importance of time · Document of title to the goods. Introduction Subject Matter of Contract of Sale The subject matter in sales of goods is ‘goods’. I have already explained what we mean by Goods. Let us know about its classification. Goods may be classified into 1.Existing goods; 2.Future goods; and 3.Contingent goods 1. Existing goods : At the time of sales if the goods are physically in existence and are in possession of the seller the goods are called ‘Existing Goods’ Existing goods can be classified into ‘specific or unascertained.’ a)Specific goods. Goods identified and agreed upon at the time of the making of the contract of sale are called ‘specific goods’ [Sec. 2(14)]. It may be noted that in actual practice the term ‘ascertained goods’ is used in the same sense as ‘specific goods,’ For example, where A agrees to sell to B a particular radio bearing a distinctive number, there is a contract of sale of specific or ascertained goods. b)Unascertained goods. The goods, which are not separately identified or ascertained at the time of the making of the contract, are known as ‘unascertained goods.’ They are indicated or defined only by description. For example, if A agrees to sell to B one bag of sugar out of the lot of one hundred bags lying in his godown, it is a sale of unascertained goods because it is not known which bag is to be delivered. As soon as a particular bag is separated from the lot for delivery, it becomes ascertained or specific goods. The distinction between ‘specific’ or ‘ascertained’ and ‘unascer- tained’ goods is important in connection with the rules regarding ‘transfer of property’ from the seller to the buyer. 2. Future goods: Future goods are goods to be manufactured or produced or yet to be acquired by seller. There cannot be present sale in respect future goods because the property cannot pass. Example a)A agrees to sell to B all the milk that his cow may yield during the coming year. This is a contract for the sale of future goods. b)X agrees to sell to Y all the mangoes, which will be produced in his garden next year. It is contract of sale of future goods, amounting to ‘an agreement to sell.’ 3. Contingent Goods: Though a type of future goods, these are the goods the acquisition of which by the seller depends upon a contingency, which may or may not happen [Sec. 6 (2)]. Example A agrees to sell specific goods in a particular ship to B to be delivered on the arrival of the ship. If the ship arrives but with no such goods on board, the seller is not liable, for the contract is to deliver the goods should they arrive.
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lecture-15 - SUBJECT MATTER OFLESSON 15: ACT, 1930 AND...

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