Introduction
The Sale of Goods Act, 1930 governs the sale and purchase of goods in India. It provides a legal framework for contracts where goods are transferred from a seller to a buyer for a price, ensuring fair commercial transactions.
Structure of the Act
- The Act is systematically arranged to cover the essential aspects of a sale of goods.
- Contains 7 Chapters and 66 Sections (originally).
- Some parts merged into the Indian Contract Act later.
- Currently, about 30 key Sections are actively applicable.
Objective of the Act
The main purpose of the Sale of Goods Act is to regulate contracts for the sale of goods, defining the rights and duties of buyers and sellers.
- To define and regulate the sale and purchase of goods.
- To establish rules for transfer of ownership and possession.
- To protect the rights of buyers and sellers.
- To ensure fair practices in trade and commerce.
Significance of the Act
The Act plays a crucial role in promoting trade by providing legal certainty and protecting parties involved in the sale of goods.
- Provides a legal framework for commerce and trade activities.
- Ensures clear rights and obligations for buyers and sellers.
- Minimizes disputes and confusion in business transactions.
- Builds trust among traders and consumers.
Scope / Applicable Areas of the Act
The Sale of Goods Act applies to contracts involving the sale of goods and defines the relationship between the buyer and seller within India.
- Applies to movable goods (excluding money and actionable claims).
- Covers transactions between wholesalers, retailers, and consumers.
- Applicable to both domestic and international sale contracts under Indian law.
- Relevant in sectors like manufacturing, retail, and e-commerce.
Key Provisions of the Act
The Act defines important terms and outlines the key duties and rights under a sale contract.
- Defines concepts like goods, sale, agreement to sell, conditions, and warranties.
- Distinguishes between transfer of ownership and possession.
- Provides remedies for breach of contract.
- Covers rights of an unpaid seller, like lien and resale.