Goods and their classification

11/03/2020 0 By indiafreenotes

Classification of Goods


Exiting Goods: Which are owned or possessed by the seller at the time of making of contract. For example Manikchand, the Gutka maker have 1 Ton of Vimal Pan Masala in his godown.

Future Goods: Goods which are going to exists in future. For example, there is new phone launched named as “Ache Din”, which will be available in future. This good will be future goods.

Contingent Goods: These goods are not certain. For example if Business man Adani says he will sell Gold to Bappi Lehri if he finds a gold in mine. After digging if Gold is found, then fine, if not then also fine. Such goods are contingent goods.

We can classify existing goods further in specific, ascertained and unascertained goods.

Specific Goods: These are goods which are identified by buyer at the time of contract of sale. For example you go to showroom and identify a particular bike or car. Important thing is these goods must be identified at the time of contract and not subsequently.

Unascertained goods: Unascertained goods are the goods which are not identified or ascertained at the time of making of the contract. They are indicated or de fined only by description or sample.

For example, If A agrees to sell to B one packet of salt out of the lot of one hundred packets lying in his shop, it is a sale of unascertained goods because it is not known which packet is to be delivered. As soon as a particular packet is separated from the lot, it becomes ascertained or specific goods.

Ascertained Goods: Ascertained Goods are those goods which are identified in accordance with  the agreement after the contract of sale is made. This term is not de ned in the Act but has been judicially interpreted. In actual practice the term ‘ascertained goods’ is used in the same sense as ‘specific goods.’ When from a lot or out of large quantity of unascertained goods, the number or quantity contracted for is identified, such identified goods are called ascertained goods.