Q.What is a contingent goods ?

Contingent goods are goods the acquisition of which by the seller depends upon a contingency — an uncertain future event that may or may not happen; they are a sub-class of future goods.

In the classification of goods under the Sale of Goods Act, 1930, goods are grouped as existing goods, future goods and contingent goods. Contingent goods are studied as a special kind of future goods.

• Meaning: goods whose availability to the seller is conditional on some uncertain event happening or not happening.
• Key feature: the sale becomes possible only if the contingency is fulfilled; if the event fails, there is no sale.
• Example: 'A' agrees to sell goods to 'B' provided a particular ship carrying those goods reaches the port safely. The goods are contingent goods — if the ship does not arrive, A cannot deliver. …

Contingent goods are future goods the seller's acquisition of which is subject to an uncertain, contingent event; the sale can be completed only if that event actually happens.

The Sale of Goods Act, 1930, first divides goods into existing goods and future goods. Contingent goods are a sub-class of future goods.

Key points:

• Their acquisition by the seller depends on the happening or non-happening of a contingency (an uncertain future event) that is beyond the seller's control.
• If the event does not occur, the contract cannot be performed and comes to an end.
• Because possession/acquisition is uncertain, a contract for contingent goods can only be an agreement to sell, never an immediate sale. …