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INTRODUCTION TO THE SALE OF GOODS ACT 1930.

QUESTION BANK.

Q.1. Define the term ‘goods’. What are the different types of goods? Apr. 04.

SYNOPSIS.

1. INTRODUCTION.
2. ‘GOODS’ MEAN (S.2 (7)):-
3. a) Goods in general:-
4. b) Stock and Shares:-
5. c) Growing Crops etc.:-
6. d) Future goods:-
7. e) Exclusion:-
8. Actionable Claims:-
9. Money:-

I. INTRODUCTION.

                    The Sale of Goods Act 1930[1]is a separate enactment to codify the law relating to the sale of goods. Earlier, this law was contained in Ss. 76 to 123 of the Indian Contract Act, 1872. The present Act repeals those sections. However, the rest of the provisions of the Indian Contract Act 1872 apply to the Sale of Goods Act. The Sale of Goods Act provides a law governing the sale of goods.

II.      GOODS MEAN (S.2 (7)):-

                    “Goods” means every kind of movable property other than actionable claims and money and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale (S. 2 (7)).

a)       Goods in general:-

                    According to the above definition, ‘goods’ includes every kind of movable property, including goodwill, copyright, trademarks, patents, water, oil, air, gas, electricity, motor vehicles and ships. Are all goods and maybe the subject matter of sale?

In Tata Consultancy Services v. State of Andhra Pradesh.

2004 AIR SCW 6583

Held:- The definition of ‘goods’ provided by the Act is very wide and includes all types of movable properties, whether tangible or intangible, transactions of sale of computer software, etc.

b)       Stock and Shares[2]:-

                    ‘Stock and shares’ are also goods. However, according to English Law, they are not goods.

c)       Growing Crops etc.[3]:-

                    Growing crops, grass, and things attached to or forming part of the land (which are agreed to be severed before sale) are goods. In other words, things attached to immovable property would be immovable property, where it is agreed to be severed from the land or from the immovable property before the sale. Thus, ‘standing timber’ on land agreed to be severed from the land before the sale of goods.

d)       Future goods[4]:-

                    ‘Future goods’ means goods to be manufactured, produced or acquired by the seller after making the contract of sale (S. 2 (6)). Thus, future goods may be the subject matter of the sale.

e)       Exclusion:-

                    The definition of ‘goods’ excludes ‘actionable claims’ and ‘money’.

i.        Actionable Claims[5]:-

1. 3 of the Transfer of Property Act, 1882, defines ‘actionable claims. ‘Where a person does not have the enjoyment of the thing but merely has the right to recover it by a suit or action is an actionable claim. The right of an agent to recover the goods of Principal, wrongfully taken from his possession, the agent right of ‘actionable claim’. Similarly, the right of trust to sue for trust property is his right of ‘actionable claim’.

ii.       Money:-

                    Money means current money, which is not goods. The price of every good is expressed in money; therefore, current money is not an object of ‘sale’, therefore, not goods. However, old and rare coins (which are not in use) may be good.

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[1] माल विक्रय अधिनियम 1930. [माल की बिक्री अधिनियम 1930]

[2] साठा व भाग

[3] वाढणारी पिके. [बढ़ती फसले]

[4] भविष्यकालीन माल. [भविष्य का सामान]

[5] कारवाई योग्य दावा [जहां किसी व्यक्ति के पास वस्तु का कब्जा नहीं है, लेकिन केवल एक मुकदमे या कार्रवाई द्वारा इसे पुनर्प्राप्त करने के अधिकार को  “कार्रवाई योग्य दावा” कहते है]