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

Karan, a trader, agrees to sell to Lalita the 'entire stock of jute bags lying in his shop at Kanpur' for Rs 90,000. Which classification of goods best describes the subject matter?

The goods are specific goods. The whole stock of jute bags in Karan's shop at Kanpur is identified and agreed upon when the contract is made, so it meets the Act's definition. It is not future or contingent, because the stock already exists.

  1. ASpecific goodsCorrect
  2. BUnascertained goods
  3. CFuture goods
  4. DContingent goods

Explanation

Specific goods are goods identified and agreed upon at the time the contract of sale is made. The entire stock in a named shop is identified and agreed. The goods already exist and belong to the seller, so they are not future goods, and the sale does not depend on any uncertain event.

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