Sale of Goods Act Section 6 — Existing or future goods

CHAPTER II FORMATION OF THE CONTRACT — Subject-matter of contract

Commercial / Corporate

Summary

Sub-section (1) explains that the goods being sold under a contract of sale can be of two types. They may be existing goods, meaning goods the seller already owns or has in their possession at the time of the contract. Alternatively, they may be future goods, which are goods that do not yet exist or that the seller does not yet have.

Sub-section (2) states that a contract can be made for the sale of goods that the seller will only acquire if a certain uncertain event happens. This means the sale depends on a condition or chance that may or may not occur, and the contract is still valid even though the seller does not yet have the goods.

Sub-section (3) clarifies what happens when a seller tries to make an immediate sale of future goods. In such a case, the contract does not actually transfer ownership right away. Instead, it is treated as an agreement to sell the goods at a later time, meaning the seller promises to deliver them in the future rather than selling them instantly.

Official Text

(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.