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Definition of Goods Under the Sale of Goods Act, 1930

Definition of Goods (Section 2(7))

Under Section 2(7) of the Sale of Goods Act, 1930, "Goods" are defined as:

"Every kind of movable property other than actionable claims and money."

This includes tangible movable property such as raw materials, finished products, stock, and commodities. It also encompasses goods that are not in existence at the time of the contract but are expected to come into existence in the future.

Exclusions

The definition explicitly excludes the following:

  1. Actionable Claims: Claims that can only be enforced through legal action, such as debt recovery.
  2. Money: Currency used as a legal tender for payment does not fall under the definition of goods.
  3. Intangible Property: Intellectual properties like patents, copyrights, or trademarks are not considered goods.

Types of Goods

The Sale of Goods Act further categorizes goods into:

  1. Existing Goods: Goods that are owned and possessed by the seller at the time of the contract.
  2. Future Goods: Goods that will be manufactured, produced, or acquired by the seller after the contract is made.
  3. Contingent Goods: Goods whose acquisition depends on the occurrence of a specific event.

Examples of Goods

The term "Goods" includes:

  • Raw materials
  • Finished products
  • Furniture
  • Stock and commodities
  • Agricultural produce
  • Machinery and tools

Note: While physical items are included, certain types of goods (e.g., future or contingent goods) are governed by specific provisions under the Act.

This definition provides a comprehensive framework for understanding what constitutes "goods" in contracts for sale and purchase under Indian commercial law.

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