Define Goods, Future Goods, Specific Goods, Delivery, Goods in Delivery State, Title to Goods, Insolvent, Mercantile Agent, Buyer, Seller

by • 09/06/2013 • GeneralComments (0)378

Q.3 Define the following terms.

1. Goods           2. Future Goods                         3. Specific Goods

4. Delivery        5. Goods in Delivery State          6. Title to Goods

7. Insolvent       8. Mercantile Agent                   9. Buyer           10. Seller

Ans:(1) GOODS

Goods means every kinds of moveable property other than actionable claims and money and includes growing crops, grass and things attached to or forming a part of the land which are agreed to be served before sale or under the contract of sale. [Sec 2(7)]

Goods includes every type of property which can be transferred from one place to another like furniture, machinery and all types of thing lying in shops for the purpose of sale. He also includes the growing crops, grass and other things, which are attached with land but can be separate from land before sale. It does not include actionable claim and money (currency notes). Actionable claim are claim like arrears of rent, claims for according debt or a share in the partnership etc.

(2) FUTURE GOODS

Future goods are those, which are not ready at the time of contract of sale but are, prepared and manufactured after the contract of sale is made,

EXAMPLE:

“A” order to “B” (the seller) to make 50 chairs, which are to be delivered to him within 10 days at a particular price. In this example these chair will be future goods because these will be manufactured after the contract sale.

(3) SPECIFIC GOODS?

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

The seller for the goods may have different types and qualities of the same product. But specified goods are that type or quality of the product, which is identified and agree upon between the seller and buyer at the time, when the contract of sale is made.

(4) DELIVERY

Delivery means voluntary transfer of possession from one person to another. [Sec 2 (2)]

When a person transfer the possession of goods to another it implies the delivery of goods. The delivery may be actual or constructive.

(5) GOODS IN DEUVERABLE STATE

Goods are said to be in a deliverable state when they are in such state that the buyer would under contract be bound to take delivery to them. [Sec. 2(3)].

When all the requirements of contract of sale related to goods to be delivered are fulfilled and goods are ready to be taken by the buyer then such goods are said to be in a deliverable state. For example, if the buyer wants that the goods should be packed in a case before making the delivery, the must put the goods incase. When the seller will do so, the goods will be in a deliverable state.

(6) DOCUMENT OF TITLE TO GOODS

Document of title to good includes a bill of lading, dock warrant, ware house keeper’s certificate, wharfinge^ certificate, railway receipt, warrant or order of the delivery of goods and any other document used in the ordinary course of business as roof for the possession or control of goods or authorizing or purposing to authorize, either by endorsement or by delivery the possessor of the document to transfer or receive goods thereby represented. [Sec. 2(4)]

From the above-mentioned definition we find that any authorizes which is used in the ordinary course of business and authority the transfer of receipt of goods represented by it, is a document of title to goods. As the railway receipt authorizes the party who possesses it to get delivery of the goods from the railway company, so it is document of title to goods.

(7) INSOLVENT

A person is said to be insolvent who has ceased to pay his debt in the ordinary course of business or cannot pay his debt as they become dye, whether he has committed an act of insolvency or not. Sec. 2(8)

An insolvent within the meaning of law is a person who must have ceased to pay his debt in the ordinary course of business or is not in position to make payment of his debts when they become due.

(8) Effect of insolvency of the buyer before paying the price

Mercantile agent means a mercantile having in the customary course of business as such agential authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods or to raise money on the security of goods. Sec. 2(9)

A mercantile agent is a person who is appointed by the principal in order to represent him in the ordinary course of dealing during the sale or purchase of goods. The common examples are factors, brokers and auctioneers etc.

(9) BUYER

Buyer means a person who buys or agrees to buy goods Sec 2(i)

This act defines buyers as a person who under the contract of sale buys or agrees to buy goods on some future day.

(10) SELLER

Seller means a person who sells or agrees to sell goods Sec 2(13)

Example

“A” and “B” enter into a contract then “A” will sell specific goods to “B” for Rs. 100/=. In this illustration, “A” will be seller and “B” will be buyer.

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