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Exercises · Q3

Q.What is meant by 'goods' under the Sale of Goods Act? Explain the classification of goods.

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Meaning of Goods: every kind of movable property other than actionable claims (like a debt) and money, including stock and shares, growing crops, grass, and things attached to or forming part of the land agreed to be severed before sale or under the contract.

Classification:

(A) Existing Goods — owned or possessed by the seller at the time of contract:

  • Specific goods — identified and agreed upon when the contract is made.
  • Ascertained goods — originally part of an unidentified lot, but specifically identified/set apart after the contract.
  • Unascertained goods — described only generally, not yet identified or set apart.

(B) Future Goods — goods the seller does not yet own or possess, to be manufactured, produced, or acquired after the contract is made; a contract for future goods always operates only as an agreement to sell, since ownership cannot be transferred in something not yet in existence. Contingent goods are a special case of future goods, whose acquisition depends on an uncertain event.

✓Final answer

Goods is every kind of movable property except actionable claims and money. Goods are classified as existing goods (specific, ascertained, or unascertained) and future goods (not yet manufactured/acquired by the seller, so any sale of them is only an agreement to sell).

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