Notes- Corporate Law-(Sales of Goods Act, 1930, An Introduction)

Prepared by Assist. Professor Rekha Khandelwal

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Corporate Law( Commercial Law) –  Sales of Goods Act, 1930, An Introduction with Flow Chart

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The basic object of Sales of goods Act is to transfer property from one person to another person.

According Section 1. The Sales of goods Act was enacted on 15^th March, 1930. It came into force on 1^st July, 1930. It extends to whole India (including Jammu & Kashmir from 31^st Oct. 2019 by J & K Reorganisation Act 2019). It is known the name of The Sales of goods Act, 1930.

The Act superseded the earlier law, which was contained in Chapter VII, Sections 76 – 123 of the Indian Contract Act, 1872. The Sales of goods Act is not complete in itself. It is expressly mentioned that the provision of Indian Contract Act which is not repealed will be applicable on contract of sale of goods until and unless such provision is in contrary to any provision of The Sales of goods Act.

Sale of Goods is ruled by The Sales of goods Act, 1930. It is also ruled by the general provisions of the Indian Contract Act on such matters where the Sales of goods Act, 1930 is silent.

There are 7 Chapters and 66 Sections in Sales of Goods  Act, 1930.

Flow Chart of Sales of Goods  Act, 1930.

2. Definition

Unless there is anything repugnant in the subject of context in theAct,

(1)”Buyer” means a person who buys or agrees to buy good.

(2) “Delivery” means voluntary transfer of possession from one person to another.

(3) “Delivered state” when goods are in such state that the buyer would under the contract be bound to take delivery of them.

(4) “Document of title to goods”

• Includes bill of lading dock-warrant, warehouse keeper’s certificate, wharfinger’s certificate, railway receipt, multimodal transport document,warrant or order for the delivery of goods.
• Any other document used in the ordinary course of business as proof of the possession or control of goods or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented.

(5) “Fault” means wrongful act or default.

(6) “Future goods” means goods to be manufactured or produced or acquired by the seller after making of the contract of sale.

(7) “Goods”

• It means every kind of moveable property other than actionable claims and money.
• It 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.

(8) “Insolvent”

• A person who has ceased 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.

 (9) “Mercantile Agent”

• A merchant agent, such as a person who sells goods in the course of business, or consign goods for the purpose of selling, or buys goods, or raises money on the security of goods.

(10) “Price” means the money consideration for a sale of goods.

(11) “Property” means the general property in goods, and not merely a special property.

(12) “Quality of goods” includes their state or condition.

(13) “Seller” means a person who sells or agrees to sell goods.

(14) “Specific goods” means goods identified and agreed upon at the time a contract of sale is made.

(15) “The Expressions which is used but not defined in this Act and defined in the Indian Contract Act, 1872, have the same meaning assigned to them in that act”.