Goods under the Sale of Goods Act

Goods (s. 2(7), Sale of Goods Act, 1930) covers all movable property except actionable claims and money; stock and shares, growing crops and grass are goods, and so are things attached to the land or forming part of it that the parties agree to sever before the sale or under the contract of sale.

Includes and excludes: goods are movable property of every kind, including stock and shares, growing crops, grass and things attached to the land that are agreed to be severed; actionable claims and money are not goods.

Kinds of goods.

• Existing goods are goods in existence at the time of the contract of sale, owned or possessed by the seller (s. 6). What matters about them is how far they have been identified. Goods described only by kind, quantity or sample, and not yet picked out ("50 bags of basmati rice"), are unascertained; once particular goods are picked out in accordance with the agreement after the contract is made, they become ascertained; and goods already identified and agreed on when the contract is made ("this blue scooter") are specific goods (s. 2(14)).
• Future goods are goods to be manufactured, produced or acquired by the seller after the contract is made (s. 2(6)); a contract for them is always an agreement to sell.
• Contingent goods are goods whose acquisition by the seller depends on an uncertain event (s. 6(2)); like future goods, a contract for them is an agreement to sell, not a sale. Example: a farmer agrees in June to sell 20 quintals of wheat from his next harvest only if the monsoon rains arrive by July; his ability to supply depends on an uncertain event.