Sale of Goods Act

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.

At least two parties, subject matter must be goods, a price in money should be paid or promised, a transfer of property in goods from seller to the buyer must take place, it must be absolute or conditional, and all other essentials of a valid contract must be present.

1st July, 1930.

Whole of India except the State of Jammu & Kashmir.

It 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.

The Sale of Goods Act, 1930 was initially a part of the Indian Contract Act, 1872, but later it was separated into a distinct act. It came into force on 1st July, 1930, and it applies to the whole of India except the State of Jammu & Kashmir. It specifically deals with contracts for the sale of goods, outlining the rights and obligations of the seller and the buyer.

The essential elements of a contract of sale of goods as per the Sale of Goods Act, 1930 are: at least two parties (bilateral contracts), subject matter of the contract must be goods, payment of a price in money, transfer of property in goods from seller to buyer, absoluteness or conditionality of the transfer, and presence of all other essentials of a valid contract.

As per Section 2(7) of the Sale of Goods Act, 1930, 'goods' mean 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.

The Sale of Goods Act, 1930 is significant in relation to the transfer of property as it outlines the conditions and requirements for the transfer of property in goods from the seller to the buyer. It establishes the legal framework for the transfer, ensuring that the process is conducted in accordance with the stipulated provisions.

As per Section 4(i) of the Sale of Goods Act, 1930, 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. This definition encompasses the fundamental nature of the contract, emphasizing the transfer of property in goods from the seller to the buyer in exchange for a price.