Unit 7: Contract of Sales of Goods
7.1 Meaning of Goods, Kind of Goods and Sale of Goods
Goods = every kind of movable property other than actionable claims and money — the English Sale of Goods Act’s classic definition (name only), which the South Asian codes copied. Kinds (the three-way map):
| Class | Meaning | Example |
|—|—|—|
| Existing goods — owned/possessed by the seller at contract | Specific (identified and agreed at contract); Ascertained (identified later, before appropriation); Unascertained/Generic (out of a described mass, not yet picked) | “My Yamaha scooter, chassis no. X”; 50 bags out of this godown’s lot; “100 bags of Shakti cement, ex-warehouse” |
| Future goods | To be manufactured, acquired or grown by the seller after contract | This season’s basmati crop; the factory’s next production run |
| Contingent goods | A species of future goods — acquisition itself contingent on an uncertain event | Goods to arrive only if the ship arrives; the auction lot if the seller wins the bid |
Sale of goods = a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a price (a money consideration). Nepal’s Muluki Civil Code 2074, Part 5, Chapter 6 (Contracts of Sales of Goods) is the governing dedicated chapter — verified from the Code’s official table of contents — replacing the general contract law’s improvised coverage of the pre-Code era.
7.2 Essential Features of Contract of Sale of Goods
- Two parties (buyer–seller — even a part-exchange keeps two sides).
- Goods (movables — 7.1; immovables take transfer, not sale of goods).
- Price in money — barter (goods for goods) is exchange, not sale; mixed consideration is sale only if money is the consideration’s substance.
- Transfer of general property (ownership), not mere possession (or an agreement so to transfer — 7.3).
- The general contract essentials apply (Law of Contract-I, Units 2–5): capacity, free consent, lawful object, certainty.
7.3 Distinction between Sale and Agreement to Sale
This is a preview. The complete Law of Contract-II notes — full unit, Exam Focus box and model questions — are in the PDF / full version. Get the complete notes →