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CMA Intermediate · Business Laws and Ethics · Sale of Goods Act, 1930

Which of the following is correctly classified as 'future goods' under the Sale of Goods Act, 1930?

Wheat the farmer expects to harvest next season is future goods, because future goods are those the seller will manufacture, produce or acquire after the contract is made. The chosen car is specific, the unseparated rice is unascertained, and the repaired machine already exists and is owned.

  1. AWheat that a farmer expects to harvest from his field next season, agreed to be sold nowCorrect
  2. BA particular car lying in a showroom and chosen by the buyer
  3. C10 quintals of rice from a godown's bulk stock, not yet separated
  4. DA machine owned by the seller but under repair

Explanation

Future goods are goods to be manufactured, produced or acquired by the seller after making the contract. Next season's wheat fits. The car is specific, the rice from bulk is unascertained, and the machine under repair is existing goods owned by the seller.

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