Buyer, Seller and Goods

Buyer:
Buyer means a person who buys or agrees to buy goods.

Seller:
Seller means a person who sells or agrees to sell goods.
 Buyer, Seller and Goods
Goods:
The term “Goods” includes every kind of movable property expect
(i) actionable claims and (ii) money.

An actionable claims means a debt or a claim for money which a

person may have against another and which he may recover by
suit. Money means legal tender money.

These two types of movable property are not included in the

definition of the term goods as used in the Sale or Goods Act. All
other types of movable property are “goods’ under the Act.
 Buyer, Seller and Goods
Existing Goods:
Existing goods are goods which are already in existence and which
are physically present in some person’s possession and ownership.

Existing goods may be either

(i) Specific and Ascertained of
(ii) Generic and Unascertained. Specific Goods are goods which can
be clearly identified and recognized as separate things e.g. a
particular picture by a painter; a ring with distinctive features;
goods identified and agreed upon at the time of the contract of
sale etc. The term Ascertained Goods is used in the same sense as
Specific Goods.
 Buyer, Seller and Goods

Future Goods:
Future Goods are goods which will be manufactured or produced
or acquired by the seller after the making of the contract of sale.

Example :
P agrees to sale to Q all the mangoes which will be produced in his
garden next year. This is an agreement for the sale of future goods.
 Buyer, Seller and Goods

Contingent Goods:
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. In such cases the goods sold are called Contingent
Goods. Contingent goods come within the class of future goods.

Example :
X agrees to sale to Y a certain ring provided he is able to purchase
it from its present owner. This is an agreement for the sale of
contingent goods.
 Sale and Agreement to Sale

Sell :

A contract for the sale of goods may be either a sale or an

agreement to sell. Where under a contract of sale the property
in the goods (i.e. the ownership) is transferred from seller to the
buyer the contract is called a sale.
 Sale and Agreement to Sale

Agreement to Sell :
When the transfer to ownership is to take place at a future time
or subject to some condition to be fulfilled later, the contract is
called an agreement to sell.

When an agreement to sell become a sale ? A agreement to sell

becomes a sale when the prescribed time elapses or the
conditions, subject to which the property in the goods is to be
transferred, are fulfilled.
 Differences Between A Sale and
An Agreement to Sale

1. Transfer of ownership.

2. Transfer of Risk.

3. Remedial Measures.

4. Nature of Contract.