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

Nisha, a jeweller in Jaipur, agrees to sell Pooja a gold necklace 'if I am able to buy it from my supplier in Surat next week'. How is this agreement best described in terms of the classification of goods?

The necklace is future goods whose acquisition depends on a contingency. Nisha does not own it at the time of the agreement, and she may acquire it only if her supplier delivers. This is therefore an agreement to sell, not an immediate sale.

  1. ASale of existing and ascertained goods
  2. BSale of goods whose acquisition depends on a contingency, being future goodsCorrect
  3. CSale of goods that have already perished
  4. DSale of ownership in immovable property

Explanation

Future goods include goods the seller will acquire after making the contract. Here the seller does not own the necklace yet and its acquisition depends on an uncertain event, so it is a contingent future goods sale. Such a contract operates as an agreement to sell, not a completed sale.

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