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Existing goods

These are the goods which are in actual existence at the time of contract of sale. These goods are owned or possessed by the seller at the time of sale. The existing goods may be of the following three types:
 
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  • Specific goods: As per Sec 2(14) These are the goods which have been actually identified and agreed by the parties at the time of contract of sale.
Example

Dhoni has 5 bikes of different make. He agrees to sell his one particular Yamaha bike to Dravid and Dravid agrees to purchase the same bike. This is sale of specific goods.

  • Unascertained Goods: The goods which are not specifically identified at the time of contract of sale are known as unascertained goods. They are not definite and specific. At the time of contract, such goods are described by description or sample only.
Example

Inder has ten horses. He agrees to sell one horse to Sunder, and in this case the contract is for the sale of an unascertained good as the horse has not been identified at the time of contract of sale. The horse remains an unascertained good.

  • Ascertained goods: The goods which are identified only after the formation of the contract of sale are known as ascertained goods. As a matter of fact, when the ‘unascertained goods’ are identified and agreed upon by the parties, the goods are called ‘ascertained goods’. Thus ascertainment takes place when the goods were not identified at the time of contract of sale but subsequently after the contract of sale.
Example

Lucky had 100 bags of rice lying in his godown. He agreed to sell 40 bags of rice to Ali, who agrees to purchase the same. After making the contract, the rice bags to be delivered to Ali were identified and kept separate by Lucky and Ali agreed to take the delivery of the same. In this case, the contract is for the sale of ascertained goods, as the rice bags to be sold are identified and agreed after the formation of contract.

 

Note: When goods are not identified at the time of contract of sale then such goods are termed as unascertained goods. The transfer of property in unascertained goods only happens after the process of ascertainment. Thus after the process of ascertainment, the goods are termed as ascertained goods.





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