Sales of Goods Act: An Overview

The most frequent transaction in practically every type of business is the selling or purchase of goods or other such products. Businessmen occasionally engage in the sale and acquisition of goods and sign sales contracts. The Sale of Goods Act of 1930 governs these contracts. It is crucial for everyone to comprehend the key concepts in the Sale of Goods Act of 1930, whether they are legal experts or normal people who deal with sales transactions. In this essay, we'll go over a few Sales of Goods Act of 1930 phrases that are both common and crucial. Read this article quickly to understand the terminologies associated to the sale of goods.

It enables the creation of contracts in which the seller grants the buyer ownership of the items in exchange for a price or agrees to do so. India as a whole can use it. According to the act, items that are sold from owner to buyer must be sold for a specific price and within a specific time frame. On September 23, 1963, the law was revised and given a new name: The Sale of Goods Act, 1930. Despite being revised in 1963, it is still in effect in Bangladesh under the name Sale of Goods Act, 1930. (Bangladesh).


The sales of goods act, 1930 has been enacted with the objective to define and amend the law relating to the sale of goods. The given act contains 7 chapters divided into 66 sections.

Table of Content

The following table illustrates the provisions mentioned under the Act −

Chapters Sections Particulars


Sec-1 to 3



Sec-4 to 17

Formation of the contract


Sec-18 to 30

Effects of the contract


Sec-31 to 44

Performance of the contract


Sec-45 to 54

Rights of unpaid seller against the goods


Sec-55 to 61

Suits for breach of the contract


Sec-62 to 66


Important terms under the Act

The following terms are defined in Section II (s.2 of the Sale of Goods Act of 1930) of the Act 

Contract of Sale

An offer to buy something for a certain price or to sell something for a certain price, along with the acceptance of such offer, constitute a contract of sale.

A contract may provide that the goods must be delivered right away, the price must be paid right away, the items must be delivered right away and the payment must also be made right away, the delivery or payment must be made in instalments, or both must be delayed.

A contract of sale may be made, as stated in Section 5 subclause (2) - Subject to the provisions of any law now in effect - in writing, verbally, partially in writing and partially verbally, or it may be inferred from the action of the parties.


This term is referenced in section 2(1) and is defined as a person who either agrees to buy particular things or actually buys them. In the sales contract, the buyer is listed as one of the parties.


A seller is someone who either sells or promises to sell a particular product, as specified in section 2(13). In the sales contract, the seller is listed as one of the parties.

We can get the conclusion that it is not necessary to transfer products in order to be considered a buyer or a seller by combining the definitions of a buyer and a seller. You automatically become a buyer and a seller under the terms of the contract of sale only by pledging to sell and buy things.


A good is any item of property or commerce. According to Section 2(7), the following is a crucial provision of the contract for the sale of goods

  • It is a portable asset (except for money and actionable claims)

  • Shares and stocks

  • Growing vegetation, grass, and standing trees

  • Items tethered to the land but agreed to be cut loose before the sale.

For instance, if a resort offers free food with lodging but the guests decide not to take the food. Therefore, since the food was not included in the sale, the rebate on food is not available.

So, unless there is money involved or a claim that can be made, we can say that things are movable property. The next section explains the several categories into which goods can be divided.

Types of Goods Under Sale of Goods Act 1930

Section 6 of the act explains in detail all types of goods in the Sale of Goods Act. There are mainly three categories of goods

  • Existing Goods

    • Specific Goods

    • Ascertained Goods

    • Unsanctioned or Unascertained Goods

  • Future Goods

  • Contingent Goods


  • Actual Delivery

  • Constructive Delivery

  • Symbolic Deliver

Requirement and Agreement

The terms "Sale" and "agreement to sell" are defined as follows under Section 4 of the Sale of Goods Act 

  • A contract for the sale of goods is one in which the seller transfers or promises to transfer the buyer's ownership of the products in exchange for payment. The property in the goods may be transferred from the seller to the buyer under a contract of sale. A contract of sale may be absolute or conditional. Where the property in the goods is transferred from the seller to the buyer under a contract of sale is called a sale, but where the transfer is to take place at a future time or subject to some condition that must be met after that, the contract is called an agreement to sell.

  • When the period of time expires or the requirements for the transfer of ownership of the items are met, an agreement to sell turns into a sale.

The following conditions must be met 

  • There must be a contract, in which the seller transfers or promises to transfer the buyer's property in the goods in exchange for payment,

  • A contract of sale may be absolute or conditional, and it may be made between two co-owners of the same asset. If the items are already in existence at the time of the agreement, it is a contract of sale; otherwise, it is an agreement to sell.


As a conclusion, it should be noted that certain elements in this article establish a fundamental framework that must be included in the contract of sale, such as the customer, seller, manner of delivery, the nature of the items, etc.

Frequently Asked Questions

Q1. What is the Sale of Goods Act's primary goal?

Ans. According to the Sale of Items Act, all delivered or sold goods must be of adequate quality and suitable for their intended use. Fit for purpose refers to a product's ability to fulfil the benefit or use that the vendor has specified.

Q2. When Sales of Goods Act was passed?

Ans.  The law governing the sale of products was defined and amended by ACT NO. 3 OF 19301, which was passed on March 15, 1930.

Q3. What categories of products fall under the 1930 Goods Act's sales provisions?

Ans. Existing commodities, future goods, and contingent goods are the three primary categories of goods.

Q4. What number of fundamentals does the Sale of Goods Act of 1930 cover?

Ans. Components of the 1930 Indian Sales of Goods Act-

The two parties (the buyer and the seller), the mercantile agent, the commodities, the price, and the transfer of general property are among them.

Q5 What advantages exist in sales?

Ans. The benefits of a sales position include 

  • The compensation model is unbeatable. People who are driven by money and are willing to put in a lot of effort might choose a career in sales. ...

  • Your career will not end in the position in which you began....

  • It's a flexible position. ...

  • It's enjoyable and never dull. ..

  • Technology and innovation are highlighted.

Updated on: 18-May-2023


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