State the various essential elements involved in the sale of unascertained goods and their appropriation as per the Sale of Goods Act, 1930.
CA Foundation · Business Laws · RTP · September 2025
State the various essential elements involved in the sale of unascertained goods and their appropriation as per the Sale of Goods Act, 1930.
Suggested Answer and Working Notes:
(a) (i) Sale of unascertained goods and Appropriation (Section 23 of the Sale of Goods Act,1930): Appropriation of goods involves selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer. The essentials are: (a) There is a contract for the sale of unascertained or future goods. (b) The goods should conform to the description and quality stated in the contract. (c) The goods must be in a deliverable state. (d) The goods must be unconditionally appropriated to the contract either by delivery to the buyer or his agent or the carrier. (e) The appropriation must be made by: (i) the seller with the assent of the buyer; or (ii) the buyer with the assent of the seller. (f) The assent may be express or implied. (g) The assent may be given either before or after appropriation. (ii) (A) Goods perishing before making of Contract (Section 7 of the Sale of Goods Act,1930): In accordance with the provisions of the Sale of Goods Act,1930 as contained in Section 7, a contract for the sale of specific goods is void, if at the time when the contract was made; the goods without the knowledge of the seller, perished or become so damaged as no longer to answer to their description in the contract, then the contract is void ab initio. (B) Goods perishing before sale but after agreement to sell (Section 8 of the Sale of Goods Act,1930): Where there is an agreement to sell specific goods, and subsequently the goods without any fault on the part of the seller or buyer perish or become so damaged as no longer to answer to their description in the agreement before the risk passes to the buyer, the agreement is thereby avoided or becomes void.
Topics: The Sale of Goods Act, 1930, The Sale of Goods Act, 1930, The Sale of Goods Act, 1930
Related Questions in this Topic
- With reference to provisions of the Sale of Goods Act, 1930, answer the following: (i) What are the consequences of the ...
- (i) The Institute of Science and Technology, Dehradun (the buyer), placed an order for various chemicals worth - 1,50,00...
- Adarsh visited an authorized car showroom and purchased a car of his choice without conducting a detailed inspection. Af...
- The Institute of Science, Pune (the buyer), placed an order for various chemicals worth - 1,50,000 from a supplier in De...
- Karan agreed to sell his laptop to Vishal for a price to be fixed by Kiran a hardware engineer. However, before the deli...