Sale of Goods Act, 1930

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The Selling of Goods Act of 1930 controls arrangements for the sale of goods. This refers to the entire of India. Contacts for the selling of merchandise shall be subject to the basic rules of contract-related legislation, i.e. the Indian Communication Act. However, a contract for the selling of goods has certain unusual characteristics, such as the transition of possession of the goods, the supply of the buyer's and seller's rights and commitments to the goods, recourse for violation of contract, terms and promises implied by the contract for the sale of goods, etc. The rules of the Sale of Goods Act, 1930 are the subject of these particularities.


A contract for merchandise is a contract in which the seller sells or agrees to transfer the goods to the customer for a sum. A purchase deal may be signed between one part-owner and another [Sec. Number 4(1)]. The contract of sale can be conditional or unconditional [Sec 4(2)]. The term' sale deal 'is a common term that requires both a sale and a purchase arrangement. The Sale of Goods Act deals with the 'Sale of Goods Act, 1930,' Contract of Sale of Goods is a contract under which the seller sells or agrees to transfer the property for a price to the buyer.' Contract of Sale' is a common concept that involves both a sale and a sale arrangement.


Two parties: in order to impact a purchase deal, there must be two different parties, i.e. a buyer and a seller, and they must be qualified for contracting. 'Buyer' means a person who purchases products or decides to buy them [Sec. Around 2(1)]. 'Seller' means a person who sells products or decides to sell them [Sec. (13)]. Goods: there must be such items in which the property is or is to be passed from the vendor to the consumer. Goods which constitute the subject-matter of the sales contract must be movable. The Selling of Goods Act does not control the movement of immovable property.

Price: Price is an integral part of all purchase deals because, in the absence of a price or consideration, the move is not deemed to be a sale. The selling conversion must be in return for a price. It has been maintained that price typically means money. The price may be charged in full in cash, or partially paid and partly promised in the future to be paid. The price will be decided by an arrangement between the parties before the property is sold.

Transfer of general property: as distinct from special property of merchandise, the transfer of general property from the seller to the purchaser must take place. For e.g., if A owns such products, the goods have general property. B has exclusive property in the products if he promises them to B.

Key components of a valid contract: in the contract of sale, all essential elements of a valid contract must be included.

                                      IMPORTANT SECTIONS OF THIS ACT

Meaning of Goods [Section 2 (7)]

Goods, rather than actionable claims and assets, indicate some sort of movable property and include the following:

• Stocking and Sharing

• Rising plants, grass and items that are attached to or form part of the property that are agreed to be served before or under the sale agreement.

Types of Good

1.Existing Goods: mean the goods purchased or possessed by the purchaser at the time of the selling contract. The current goods may be unique or uncertain or as follows: • Specified Goods [section 2(14)]

• Unsanctioned Goods

• Ascertained Goods

2.Future Goods [Section 2(6)]

3.Contigent Goods [Section 6(2)]

 Price of Goods [Section 3(10)]

Price indicates the consideration of cash for a sale of goods. Modes of Determining Price [section 9(1)]

There are three modes:

 It can be decided by the arrangement or by the contract.

 It could be left to be decided in an accepted way.

 It can be decided by the way the parties interact with each other.

 Thus, at the time of selling, the price need not actually be set.

Meaning of condition

A stipulation is a requirement Which is important to the contract's key purpose. A violation which gives the aggrieved party the right to terminate the agreement.

• Meaning of Warranty

A warranty is a stipulation that is collateral for the contract's key function. The violation of which grants the aggrieved party the right to demand damages but not the right to deny merchandise and cancel the deal.

• Implied condition

1.Condition as to Title [Section 14(a)]

2.Condition in case of sale by Description (Section 15)

3.Condition in case of sale by sample [Section 17]

4.Condition in case of sale by Description and Sample [Section 15]

5.Condition as to Quality or Fitness [Section 16(1)]

6.Condition as to merchantable quality [section 16(2)]

7.Condition as to wholesomeness

8.Condition implied by custom [Section 16(3)]

Transfer of Property in Goods

MEANING: Passing of property involves the transfer of ownership and not the actual possession of goods. For example, if a principal sends goods to his agent, he merely transfers the physical possession and not the ownership of goods. Here, the principal is the owner of the goods but has no possession of goods and the agent has possession of goods, but the owner is not us.


The seller and buyer are responsible for the execution of the deal. The responsibility of the seller is to supply the goods and that of the buyer, in compliance with the contract of sale, to receive the goods and pay for them. Paying of the price and distribution of the products and concurrent terms, i.e., all take place at the same time as in cash transactions over a shop counter, unless otherwise agreed. Delivery (Sections 33-39) Delivery is the voluntary transition, from one party to another, of custody. Delivery can be actual, positive or symbolic.


(a) Distribution should have the effect of taking control of the purchaser.

(b) According to the contract, the seller shall supply the goods.

(c) When the buyer asks for delivery, the seller must supply the goods; it is the buyer's responsibility to demand delivery.

(d) If the goods are in the hands of a third party at the time of the transaction, distribution shall take place only if that person agrees to the customer that he owns the goods on his behalf.

(h) If the items are to be shipped to a location other than the place where they are, the buyer will bear the burden of deterioration in transit, unless otherwise decided.


The seller will sue him for the price if the property in the products has passed to the buyer. If the price is due on a certain day, irrespective of the delivery day, the vendor may sue for the price if it is not paid on that day, even if the products have not passed through the land. The seller should sue the buyer for damages for non-acceptance if the buyer wrongfully neglects or refuses to accept the products and pay for them. The customer can sue him for damages for non-delivery if the seller wrongfully neglects or refuses to deliver the goods to the buyer. The purchaser cannot reject the goods if there is a breach of warranty or if the buyer elects or is compelled to treat the breach of condition as a breach of warranty. In extinction or diminution of the price owed by him, he will set a breach of warranty and if the injury suffered by him is higher than the price he can apply for the damages. The buyer may sue the seller for the recovery of the amount paid if the buyer has paid the price and the goods are not delivered. The customer will still get an order from the court in appropriate situations that the relevant items should be shipped.


Where either party to a sales contract withdraws from the contract prior to the date of delivery, the other party may either treat the contract as still in existence and wait until the date of delivery, or treat the contract as being terminated and sue for damages for the infringement. If the deal is regarded as still valid, it will not be stripped of the gain of both the parties and the person that initially repudiated it:

(a) his right to perform on the due date, in spite of his prior repudiation;

or (a) his right to perform on the due date, in spite of his prior repudiation;

(b) his right to create any defense for non-performance that could actually have happened since the date of the previous repudiation.


Where any party to a sales contract withdraws from the contract prior to the date of delivery, the other party can either treat the contract as still in effect and wait until the date of delivery, or treat the contract as being terminated and sue for damages for the violation. The source of merchandise is known to be an 'unpaid Seller'.

If the whole price was not paid or tendered, Where an exchange bill or other negotiable instrument (such as a cheque) has been obtained and dishonoured as a conditional payment [Section 45(1)].

RIGHT OF UNPAID SELLER [Section 46-52,54-56,60-61]

• Right against the goods

• Right against the buyer personally

Right of lien [Section 47, 48and 49]

Meaning of Lien’s Right: The right to lien means the right to retain ownership of the goods until the full price has been obtained.

Three circumstances in which lien rights may be exercised [Section 47(1)]]

1. Where the products were sold without credit stipulation;

2. Where the goods have been sold on loan, but the credit term has expired;

3. Where the purchaser is insolvent.


We may infer that a contract for the selling of immovable property is a contract provided that the sale of such property takes place on the terms agreed in the said contract between the parties. Such a purchase deal does not give rise to any interest or fee on such immovable property. The purchase contract does not give way to any transition of ownership. However, in relation to the possession of the land, a sort of duty is established.


 Bare Act of sales of Goods Act, 1930