The Sale of Goods Act is a legislation that governs the sale of goods in India. It was introduced in 1930 and has since undergone several amendments. The primary objective of this act is to protect the rights of buyers and sellers in a transaction. The contract of sale is a critical aspect of this act, and it defines the terms and conditions of the sale of goods. In this article, we will discuss the subject matter of the contract of sale as per the Sale of Goods Act.
According to the Sale of Goods Act, the subject matter of the contract of sale can be any tangible goods that are capable of being sold. The term “goods” refers to any movable property, other than actionable claims and money. It may include items such as electronics, clothing, vehicles, machinery, and livestock, among others.
The contract of sale can cover the entire or a part of the goods. This means that the parties can agree to sell the entire stock of goods or a specific number of goods from the stock. The contract can be for the sale of specific goods, which are identified and agreed upon by the parties. On the other hand, the contract can be for the sale of unascertained goods, which are not identified at the time of the contract but are identified later.
The quality of the goods is another subject matter that can be covered in the contract of sale. The Sale of Goods Act mandates that the goods sold must be of a satisfactory quality. This means that the goods must meet the standard that a reasonable person would consider acceptable. The quality of the goods can be specified in the contract of sale, and any deviations from the agreed quality can result in a breach of the contract.
The price of the goods is also an essential subject matter of the contract of sale. The parties must agree on the price of the goods, and it must be certain or ascertainable at the time of the contract. The price can be fixed or may be determined according to a specific formula or method. In cases where the price is not specified, the buyer must pay a reasonable price for the goods.
The payment terms are another subject matter that can be covered in the contract of sale. The parties must agree on the mode of payment, and the payment must be made at the time and place of delivery unless otherwise agreed. The contract can also specify the consequences of non-payment or delayed payment.
In conclusion, the Sale of Goods Act provides a framework for the sale of goods in India, and the contract of sale is a critical aspect of this act. The subject matter of the contract of sale can be any tangible goods that are capable of being sold, the quality of the goods, the price of the goods, and the payment terms. It is essential for the parties to agree on these terms to avoid any disputes or breaches of the contract.