Subject-matter of contractCentral

Section 6 of The Sale of Goods Act, 1930

(1)The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or future goods.
(2)There may be a contract for the sale of goods the acquisition of which by the seller depends upon a contingency which may or may not happen.
(3)Where by a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods.

Summary

The items in a contract of sale can be either existing goods (already owned by the seller) or future goods.
A seller can make a contract for goods they haven't even acquired yet, such as things that depend on a chance event.
If a seller tries to perform a "present sale" of goods that don't exist yet, the law treats it as an agreement to sell.
This provision distinguishes between what the seller currently has and what they plan to get or make.

1On March 1, 2024, a tech company agrees to sell 100 laptops that it plans to manufacture next month, which are future goods.

2A fisherman agrees on May 20, 2024, to sell his next catch of salmon, which is a contract for goods depending on a contingency.

1. Can you have a contract for goods that don't exist yet under the Sale of Goods Act, 1930?

Yes, Section 6(1) of the Sale of Goods Act, 1930, allows for contracts regarding future goods.

2. What happens if someone tries to sell future goods immediately under the Sale of Goods Act, 1930?

According to Section 6(3) of the Sale of Goods Act, 1930, such a contract operates as an agreement to sell the goods.

3. Can a sale depend on a chance event under the Sale of Goods Act, 1930?

Yes, Section 6(2) of the Sale of Goods Act, 1930, allows for contracts where acquisition depends on a contingency that may or may not happen.

Q1.Under Section 6(3) of the Sale of Goods Act, 1930, if a seller purports to effect a present sale of future goods, what is the legal effect?

Q2.According to Section 6(1) of the Sale of Goods Act, 1930, what can be the subject of a contract of sale?

Q3.Section 6(2) of the Sale of Goods Act, 1930, mentions a "contingency." What does this refer to in plain terms?

Q4.Using the definition of "future goods" from Section 2(6) alongside Section 6, what is the status of goods a seller expects to inherit?