Page 119 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes (a) specific or ascertained; or (b) generic and unascertained. Specific goods means goods identified
and agreed upon at the time a contract of sale is made [s.2 (14)]. Ascertained goods, though
normally used as synonym for specific goods may be intended to include goods which have
become ascertained subsequently to the formation of the contract. Generic or unascertained
goods are goods indicated by description and not specifically identified.

Example: Anthony, who owns a TV show room, has 20 TV sets and agrees to sell any one
of them to Bharti. The contract is for unascertained goods, since which particular TV set shall
become the subject matter of sale is not individualized at the time of the contract of sale.

Future goods means goods to be manufactured or produced or acquired by the seller after
making the contract of sale [s. 2 (6)].

Example: Kulkarni agrees to sell future crop of a particular agricultural field in the next
season. This is an agreement to sell future goods.
Contingent goods are the goods the acquisition of which by the seller depends upon a contingency
which may or may not happen [s. 6 (2)]. Contingent goods are a part of future goods.

Example: Alka agrees to sell to Bhola a certain painting only if Chetan, its present
owner, sells it to her. This painting is classified as contingent goods.

Notes Meaning of Price
Price means the money consideration for the sale of goods. Price is an integral part of a
contract of sale. If price is not fixed, or is not capable of being fixed, the contract is void ab
initio. As to how the price is to be fixed Ss. 9 and 10 lay down certain rules. According to s.
9, the price may (i) either be fixed by the contract, or (ii) agreed to be fixed in a manner
provided by the contact, e.g., by a valuer or (iii) determined by the course of dealings
between the parties.

For example, in a particular trade, there is a usage to deduct discount in determining the
price. The usage is implied by the course of dealings between the parties.
In case, price is not capable of being fixed in any of the above three ways, the buyer is
bound to pay a reasonable price. What is a reasonable price will vary from case to case.
Where, however, there is a market price, that may be a reasonable price.

Section 10 days down that in case price is left to be fixed by the valuer and he fails to fix the
same, the agreement becomes void except as to part of goods delivered and accepted
regarding which the buyer is bound to pay a reasonable price. If, however, one of the
parties prevent the valuer from making the valuation, he would be liable to pay damages
to the other contracting party.
Self Assessment

Fill in the blanks:
3. ……………….goods are those which are owned or possessed by the seller at the time of
the contract
4. ……………..goods means goods to be manufactured or produced or acquired by the seller
after making the contract of sale.

112 LOVELY PROFESSIONAL UNIVERSITY