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

Ramesh, an owner of a mango orchard, agrees to sell to Sanjay the mangoes that will grow on his trees this season for Rs 60,000. Which statement is correct?

It is a valid agreement to sell future goods. Mangoes yet to grow are goods to be produced after the contract, and such a contract is only an agreement to sell. A fixed price does not make it an immediate sale, and it is not void.

  1. AIt is a contract for sale of future goods, which is treated as an agreement to sellCorrect
  2. BIt is void because the goods are not in existence
  3. CIt is a sale because the price is fixed
  4. DIt is void as the goods are immovable property

Explanation

Future goods are goods to be manufactured, produced or acquired by the seller after making the contract. A contract for sale of future goods is only an agreement to sell, and it is valid. The goods are not void, and the sale becomes complete when the property passes after the goods come into existence.

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