Goods (under SOGA 1930) - Commerce Ka Ladka -commerce in easy language

 The Sale of Goods Act, 1930, is an important law in India that governs the sale and purchase of goods. It defines the rules and rights for buyers and sellers involved in such transactions. This article focuses on goods, a key concept under this Act, and explains it in simple terms.

Goods are every kind of movable property other than actionable claims and money.

What Are Goods?

Under Section 2(7) of the Sale of Goods Act, 1930, goods are defined as any type of movable property, excluding money and actionable claims. This means goods include anything you can touch and move, such as:

• Clothes
• Electronics
• Food items
• Furniture

But it does not include things like money, debts, or shares.

Types of Goods

The Act classifies goods into different types based on their condition and ownership status:

1. Existing Goods
   These are goods that already exist and are owned or possessed by the seller at the time of the contract.

   • Specific Goods: These are goods identified and agreed upon at the time of the sale, like a particular car or a specific painting.
   • Ascertained Goods: Goods that are selected from a larger quantity after the contract is made. For example, selecting 5 kg of rice from a sack of 50 kg.
   • Unascertained Goods: These are goods not specifically identified during the contract. For instance, “a bag of apples” without specifying which bag.

2. Future Goods
   These are goods that the seller will produce or acquire after the contract is made. For example, a farmer agreeing to sell wheat that will be harvested next month.

3. Contingent Goods
   These goods depend on a certain condition being fulfilled. For example, selling a shipment of mangoes only if the ship arrives safely.

Sale vs. Agreement to Sell

It’s important to understand the difference between a sale and an agreement to sell:

• Sale: Ownership of goods is immediately transferred to the buyer.
• Agreement to Sell: Ownership will be transferred at a future date or after certain conditions are met.

For example:

• If you pay for a book and take it home immediately, it’s a sale.
• If you book a car and agree to take it after a week, it’s an agreement to sell.

Conclusion

The Sale of Goods Act, 1930, simplifies transactions by defining goods and setting rules for their sale and purchase. By categorizing goods into existing, future, and contingent, the Act helps both buyers and sellers understand their rights and responsibilities clearly. Whether you’re shopping for groceries or signing a big business deal, knowing these basics can be very helpful.