“Goods” means every kind of movable property other than actionable claims and money; and
includes stock and shares, growing crops, grass, and things attached to or forming part of the land,
which are agreed to be severed before sale or under the contract of sale. [Section 2(7)]
This is a wider definition than contained in the English law, which does not consider ‘stock’ and
‘shares’ as goods, though it includes a ship.
‘Actionable claims’ are claims, which can be enforced only by an action or suit, e.g., debt. A debt is
not a movable property or goods. Even the Fixed Deposit Receipts (FDR) are considered as goods
under Section 176 of the Indian Contract Act read with Section 2(7) of the Sales of Goods Act.

(i) EXISTING GOODS are such goods as are in existence at the time of the contract of sale, i.e., those
owned or possessed by the seller at the time of contract of sale (Section 6).

The existing goods may be of following kinds:

(a) Specific goods means goods identified and agreed upon at the time a contract of sale is made
[Section 2(14)].

Example 1: Any specified and finally decided goods like a Samsung Galaxy S7 Edge, Whirlpool washing
machine of 7 kg etc.

Example 2: ‘A’ had five cars of different models. He agreed to sell his ‘fat’ car to ‘B’ and ‘B’ agreed to
purchase the same car. In this case, the sale is for specific goods as the car has been identified and
agreed at the time of the contract of sale.

(b) Ascertained Goods are those goods which are identified in accordance with the agreement after the
contract of sale is made. This term is not defined 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.

Example: A wholesaler of cotton has 100 bales in his godown. He agrees to sell 50 bales and these bales
were selected and set aside. On selection the goods becomes ascertained. In this case, the contract
is for the sale of ascertained goods, as the cotton bales to be sold are identified and agreed after the
formation of the contract. It may be noted that before the ascertainment of the goods, the contract was
for the sale of unascertained goods.

(c) Unascertained goods are the goods which are not specigically identified or ascertained at the time of
making of the contract. They are indicated or defined only by description or sample.

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 specifc goods

4 BUSINESS LAWS

(ii) FUTURE GOODS means goods to be manufactured or produced or acquired by the seller after
making the contract of sale [Section 2 (6)].
A contract for the sale of future goods is always an agreement to sell. It is never actual sale because a
man cannot transfer what is not in existence.

Example 1: 1,000 quintals of potatoes to be grown on A’s field, is not illegal, though the actual sale of
future goods is not possible. This is an example of agreement to sell.

Example 2: P agrees to sell to Q all the milk that his cow may yield during the coming year. This is a
contract for the sale of future goods.

Example 3: T agrees to sell to S all the oranges which will be produced in his garden this year. It is
contract of sale of future goods, amounting to ‘an agreement to sell.’

(iii) CONTINGENT GOODS: The acquisition of which by the seller depends upon an uncertain contingency
(uncertain event) are called ‘contingent goods’ [Section 6(2)].
Contingent goods also operate as ‘an agreement to sell’ and not a ‘sale’ so far as the question of passing
of property to the buyer is concerned. In other words, like the future goods, in the case of contingent
goods also, the property does not pass to the buyer at the time of making the contract.
Example: A agrees to sell to B a Picasso painting provided he is able to purchase it from its present
owner. This is a contract for the sale of contingent goods.