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Unit 13: Law of Sales of Goods

An agreement to sell means a contract of sale under which the transfer of property in goods Notes
is to take place at a future date or subject to conditions thereafter to be fulfi lled.

Goods may be classified as existing, future and contingent. In contract of sale, parties make
certain stipulations.
All stipulations are not treated on the same footing. These stipulations are technically
known as conditions and warranties.

13.8 Keywords

Condition: A condition is a stipulation essential to the main purpose of the contact, the breach of
which gives rise to a right to treat the contract as repudiated.
Contract of sale: A contract of sale of goods is a contract whereby the seller transfers or agrees to
transfer the property in goods to the buyer for a price.
Delivery: It is defined as a voluntary transfer of possession from one person to another.

Ex-ship contracts: Under this agreement the seller has to deliver the goods to the buyer at the
port of destination.

Goods: Goods mean every kind of movable property other than actionable claims and money.
13.9 Self Assessment

State whether the following statements are true or false:
1. No sale can take place without a price.
2. The delivery of ascertained goods is essential for the completion of sale.
3. Consideration in a contract of sale of goods can also be paid partly in money and partly in
goods.
4. The right of lien by an unpaid seller can be exercised for the non-payment of price of goods
and other charges.
5. The word lien means to retain possession of.
6. The amount of damages is not to be determined in accordance with the provisions laid
down in Sec.73 of the Indian Contract Act, 1872.
7. Risk follows ownership.
8. There are can be an ‘agreement to sell’ goods.
9. A ‘Hire-purchase agreement’ is a bailment plus an agreement to sell.

13.10 Review Questions

1. State the essentials of a contract of sale under the Sale of Goods Act, 1930.

2. Distinguish between (i) Sale and hire purchaser agreement, (ii) Sale and ‘contract for work
and labour’, (iii) sale and agreement to sell.
3. What is meant by goods?
4. What is meant by (i) ascertained and unascertained goods, (ii) specific and generic goods,

(iii) existing and future goods?

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