Sale of Goods Act Section 2 — Definitions

CHAPTER I PRELIMINARY

Commercial / Corporate

Summary

Sub-section (1) defines a buyer as a person who buys goods or agrees to buy goods.

Sub-section (2) defines delivery as the voluntary transfer of possession of goods from one person to another.

Sub-section (3) explains that goods are in a deliverable state when they are in such a condition that the buyer would be legally required, under the contract, to accept delivery of them.

Sub-section (4) defines a document of title to goods. It includes specific documents like a bill of lading, dock warrant, warehouse keeper's certificate, wharfinger's certificate, railway receipt, multimodal transport document, warrant or order for delivery of goods. It also includes any other document used in normal business as proof of possession or control of goods, or that authorises or claims to authorise, through endorsement or delivery, the person holding the document to transfer or receive the goods it represents.

Sub-section (5) defines fault as a wrongful act or default.

Sub-section (6) defines future goods as goods that the seller will manufacture, produce, or acquire after the contract of sale is made.

Sub-section (7) defines goods as every kind of movable property, except actionable claims and money. It also includes stock and shares, growing crops, grass, and things attached to or forming part of land that are agreed to be cut or separated before the sale or under the contract of sale.

Sub-section (8) defines a person as insolvent if they have stopped paying their debts in the normal course of business, or cannot pay their debts when they become due, regardless of whether they have formally committed an act of insolvency.

Sub-section (9) defines a mercantile agent as an agent who, in the usual course of their business, has authority to sell goods, consign goods for sale, buy goods, or raise money using goods as security.

Sub-section (10) defines price as the money consideration paid for a sale of goods.

Sub-section (11) defines property as the general ownership interest in goods, not just a limited or special interest.

Sub-section (12) defines quality of goods as including their state or condition.

Sub-section (13) defines a seller as a person who sells or agrees to sell goods.

Sub-section (14) defines specific goods as goods that are identified and agreed upon at the time the contract of sale is made.

Sub-section (15) states that any terms used in this Act but not defined here, if they are defined in the Indian Contract Act, 1872, will have the same meaning as given in that Act.

Official Text

In this Act, unless there is anything repugnant in the subject or context,—

(1) “buyer” means a person who buys or agrees to buy goods;

(2) “delivery” means voluntary transfer of possession from one person to another;

(3) goods are said to be in a “deliverable state” when they are in such state that the buyer would under the contract be bound to take delivery of them;

(4) “document of title to goods” includes a bill of lading, dockwarrant, warehouse keeper’s certificate, wharfingers’ certificate, railway receipt, 5[multimodal transport document,] warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented;

(5) “fault” means wrongful act or default;

(6) “future goods” means goods to be manufactured or produced or acquired by the seller after the making of the contract of sale;

(7) “goods” means every kind of moveable 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;

(8) a person is said to be “insolvent” who has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not;

(9) “mercantile agent” means a mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods;

(10) “price” means the money consideration for a sale of goods;

(11) “property” means the general property in goods, and not merely a special property;

(12) “quality of goods” includes their state or condition;

(13) “seller” means a person who sells or agrees to sell goods;

(14) “specific goods” means goods identified and agreed upon at the time a contract of sale is made; and

(15) expressions used but not defined in this Act and defined in the Indian Contract Act, 1872 (9 of 1872), have the meaning assigned to them in that Act.