Master TDS & TCS Provisions with Critical Issues. Register Now!

Mercantile Law help needed

ks136 (student) (43 Points)

27 June 2011

Can sm1 explain these points 2 me plz

From: Sale of goods act 1930

6. Existing or future goods.- (1) The goods which form the subject of a contract of sale may be
either existing goods, owned or possessed by the seller, or future goods.
(2) There may be a contract for the sale of goods the acquisition of which by the seller depends
upon a contingency which may or may not happen.
(3) Where by a contract of sale the seller purports to effect a present sale of future goods, the
contract operates as an agreement to sell the goods.

Problem in (2) and (3) of above

and this point too plz

-A contract of sale may be absolute or conditional

Reply
Follow
Share

1 Replies

Ankur (na) (252 Points)
Replied 21 July 2011

Existing goods are goods owned by the selller at the time of sale while those goods which are yet to be owned by him like agricultural products yet to be produced are the examples of future goods.

the goods may be obtained by him depending upon certain contigency which may or may not take place. like if he enters into an agreement to sell 100 kg of good tomatoes possibly to be grown by him and if the tomatoes are later not grown by him then this becomes a contract dependent upon contingency

a contract will be called a contract of sale of goods if the goods are in existence at the time of sale but if the goods are not in existence then any agreement made to sell those goods yet to be manufactured will be called agreement to sell.