The Sale of Goods Act, 1930 - Unit 1 Vocabulary

Key legal terms and definitions defined in Unit 1 (Formation of the Contract of Sale) under The Sale of Goods Act, 1930.

Buyer

A person who buys or agrees to buy goods [Section 2(1)].

Seller

A person who sells or agrees to sell goods [Section 2(13)].

Goods

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/separated from the land before sale or under the contract of sale [Section 2(7)].

Specific goods

Goods identified and agreed upon at the time a contract of sale is made [Section 2(14)].

Future goods

Goods to be manufactured or produced or acquired by the seller after making the contract of sale [Section 2(6)].

Delivery

Voluntary transfer of possession from one person to another [Section 2(2)].

Constructive delivery

Delivery that takes place when a person in possession of the goods belonging to the seller acknowledges to the buyer that he holds the goods on buyer's behalf.

Mercantile Agent

An agent who in the customary course of business has, as such agent, authority either to sell goods or to consign goods for the purpose of sale or to buy goods or to raise money on the security of the goods [Section 2(9)].

Insolvent

A person who ceases to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not [Section 2(8)].

Price

The money consideration for a sale of goods [Section 2(10)].