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CA Foundation · Business Laws · The Sale of Goods Act, 1930

Harish owns 500 bags of cement stored in a godown. He agrees to sell to Imran 'any 100 bags out of my 500 bags'. Which classification applies to the 100 bags at the time of the contract?

The 100 bags are unascertained goods. They are to be drawn from a larger stock of 500 bags and have not been identified when the contract is made. They become ascertained only once the particular 100 bags are identified and set apart afterwards.

  1. ASpecific goods
  2. BAscertained goods
  3. CUnascertained goodsCorrect
  4. DFuture goods

Explanation

The 100 bags are to be picked from a larger stock of 500 and are not yet identified at the time of the contract, so they are unascertained goods. They become ascertained only when 100 bags are identified and set apart after the contract. They are not future goods because Harish already owns the whole stock.

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