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THE SALES OF
GOODS ACT
(1930)
INTRODUCTION
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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1930 and sections 76 to 123 were repealed from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.
Cont.
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 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.
Sales of Goods Act does not Deals with:4
 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
DEFINATION
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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
ESSENTIAL ELEMENTS OF THE ACT
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BUYER AND
SELLER
ESSENTIAL
ELETMENTS
OF VALID
CONTRACT
PRICE
GOODS
TRANSFER OF
PROPERTY
A.BUYER AND SELLER
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 “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
B. 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.
Cont.
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 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.
C. TRANSFER OF PROPERTY
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“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
Cont.
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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.
d. price
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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.
i.
ii.
When there is no consideration,it amounts to gift and
not sale
However , the consideration may be partly in money
and partly in goods because the law does not
prohibited as such.
E. ESSENTIAL ELEMENTS OF VALID
CONTRACT
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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)
CONTRACT OF SALE
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Under Section 4(3) the Contract of Sale Includes:1) SALE:- Sale means where the ownership in goods
is transferred.
2) 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.
Distinction between sale and agreement to sell
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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)
Cont.
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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.
GOODS
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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
TYPES OF GOODS
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1.Existing goods
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EXISTING GOODS
means the goods ,which are either owned or 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
2.Future 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.
3.Contingent goods
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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 Z’s farm in Haryana during the year 2007
season for sum of 1 lakh rupees,if Z sells the crops.
REFERENCE
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 THE PREESENTATION IS MADE FROM THE
MODULE GIVEN IN THE COURSE OF CHARTED
ACCOUNTANT.
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Thank You