Business Laws: The Sale of Goods Act, 1930 - Unit 1

This set of vocabulary flashcards covers essential definitions, classifications of goods, types of delivery, and legal distinctions within Unit 1 of the Sale of Goods Act, 1930 as presented in the lecture notes.

The Sale of Goods Act, 1930 (Implementation Date)

The Act which regulates the laws relating to the sale of goods in India, which came into force on $1^{st}$ July $1930$.

Buyer

Defined under Section $2(1)$ as a person who buys or agrees to buy goods.

Seller

Defined under Section $2(13)$ as a person who sells or agrees to sell goods.

Goods

According to Section $2(7)$, every kind of movable property other than actionable claims and money; includes stock and shares, growing crops, and things attached to land agreed to be severed.

Actionable Claims

Claims that can be enforced only by a suit or action, such as a debt, and are excluded from the definition of goods.

Existing Goods

Goods that are owned, possessed, or acquired by the seller at the time the contract of sale is made, as per Section $6$.

Specific Goods

Defined under Section $2(14)$ as goods identified and agreed upon at the time a contract of sale is made.

Ascertained Goods

Goods that are identified in accordance with an agreement after a contract of sale is made; often used interchangeably with specific goods.

Unascertained Goods

Goods that are not specifically identified or ascertained at the time of making the contract and are defined only by description or sample.

Future Goods

Under Section $2(6)$, goods to be manufactured, produced, or acquired by the seller after making the contract of sale.

Contingent Goods

Under Section $6(2)$, a type of future goods where the acquisition by the seller depends upon an uncertain event.

Delivery

Under Section $2(2)$, the voluntary transfer of possession from one person to another.

Actual Delivery

A form of delivery where the goods are physically transferred to the buyer or an authorized representative.

Constructive Delivery

Also known as delivery by attornment, it occurs when a person in possession of goods acknowledges holding them on behalf of the buyer without a change in actual custody.

Symbolic Delivery

The delivery of a thing in token of a transfer of something else, such as handing over the keys to a warehouse or documents of title.

Deliverable State

Under Section $2(3)$, a condition where the goods are such that the buyer would be bound under the contract to take delivery of them.

Document of Title to Goods

Under Section $2(4)$, documents used in the ordinary course of business as proof of possession or control of goods, such as a bill of lading or railway receipt.

Document Showing Title

A document, such as a share certificate, that identifies a person entitled to a specific property but is not a document of title as it does not allow transfer by mere endorsement.

Mercantile Agent

An agent defined in Section $2(9)$ who has the authority to sell, consign, buy, or raise money on the security of goods in the customary course of business.

Property

Under Section $2(11)$, this refers to ownership or general property in goods, rather than merely a special property like a pledge.

Insolvent

Under Section $2(8)$, a person who has ceased to pay debts in the ordinary course of business or cannot pay debts as they become due.

Price

The money consideration for the sale of goods as defined in Section $2(10)$.

Contract of Sale

Under Section $4(1)$, a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.

Sale

A contract where the property in goods is transferred from the seller to the buyer immediately, as per Section $4(3)$.

Agreement to Sell

A contract where the transfer of property is to take place at a future time or subject to conditions to be fulfilled later, as per Section $4(3)$.

Hire-Purchase Agreement

An agreement under the Hire-purchase Act, $1972$, where goods are let on hire and the hirer has an option to purchase them upon paying the final instalment.

Bailment

The delivery of goods for a specific purpose under a contract where they must be returned or disposed of according to the bailor's directions.

Jus in rem

A right created by a sale that gives the buyer a right against the whole world regarding the goods.

Jus in personam

A right created by an agreement to sell that gives a party a right against a particular person.

Section 7 (SGA)

States that a contract for the sale of specific goods is void if the goods have perished without the seller's knowledge at the time the contract was made.

Section 8 (SGA)

States that an agreement to sell specific goods is avoided if the goods perish without fault of either party before the risk passes to the buyer.