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

Mohan agrees to sell to Seema the entire mango crop that will grow on his orchard in Ratnagiri this season. Under the Sale of Goods Act, 1930, how is the mango crop classified at the time of the agreement?

The mango crop is future goods, because it will be produced by the seller only after the contract is made. Goods that the seller does not yet own or possess, such as a crop yet to grow, fall under future goods in the Sale of Goods Act.

  1. AExisting goods
  2. BFuture goodsCorrect
  3. CContingent goods that can never be sold
  4. DAscertained goods already owned by Seema

Explanation

Future goods are goods to be manufactured, produced or acquired by the seller after making the contract. The mangoes have not yet grown at the time of the agreement, so they are future goods and the contract is an agreement to sell. The other options do not fit because the goods are neither existing nor owned by the buyer.

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