Friday, February 7, 2014

Filled Under:

Kinds of Goods

Goods may be classified into
1. Existing goods;
2. Future goods; and
3. Contingent goods

1.  Existing goods: At the time of sales if the goods are physically in existence and are in possession of the seller the goods are called ‘Existing Goods’. Existing goods can be classified into ‘specific or unascertained.’

(a)  Specific goods. Goods identified and agreed upon at the time of the making of the contract of sale are called ‘specific goods’ [Sec. 2(14)]. It may be noted that in actual practice the term ‘ascertained goods’ is used in the same sense as ‘specific goods,’ For example, where A agrees to sell to B a particular radio bearing a distinctive number, there is a contract of sale of specific or ascertained goods.

(b)Unascertained goods. The goods, which are not separately identified or ascertained at the time of the making of the contract, are known as ‘unascertained goods.’ They are indicated or defined only by description. For example, if A agrees to sell to B one bag of sugar out of the lot of one hundred bags lying in his godown; it is a sale of unascertained goods because it is not known which bag is to be delivered. As soon as a particular bag is separated from the lot for delivery, it becomes ascertained or specific goods.

The distinction between ‘specific’ or ‘ascertained’ and ‘unascer­tained’ goods is important in connection with the rules regarding ‘transfer of property’ from the seller to the buyer.

2.  Future goods: Future goods are goods to be manufactured or produced or yet to be acquired by seller. There cannot be present sale in respect future goods because the property cannot pass.

3.    Contingent Goods: Though a type of future goods, these are the goods the acquisition of which by the seller depends upon a contingency, which may or may not happen [Sec. 6 (2)].

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