Ram Bilas Yadav is a farmer. Anna Chips Company approached him and entered in a contract to supply100 quintals of potatoes which to be grown in the…

As per Section 4 (3) of the Sale of Goods Act,1930, where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell and as per Section 4 (4) , an agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. Further Section 2 (6) defines “future goods” means goods to be manufactured or produced or acquired by the seller after the making of the contract of sale. In the instant case, it can be said that there was an agreement to sell between Ram Bilas Yadav and Anna Chips Company and not a sale because the goods under agreement was future goods. Even the payment was made by Anna Chips Company, the property in goods can be transferred only after the goods is ascertained. As the goods was not ascertained, property is not passed to buyer. Hence, Ram Bilas Yadav must return the price to Anna Chips Company.