02/05/2018 Future Goods - Formation of Contract of Sale - Pearson - Mercantile Law for the CA-CPT

Future Goods

Future Goods
These are the goods which are not in existence at the time of making the contract of
sale sec 2(6). The seller acquires such goods after the making of the contract of sale.
Thus, the future goods are those which are to be acquired or produced by the seller
after the contract of sale is made. As per sec 6(3) a sale initiated in case of future
goods will operate as a contract of agreement to sell.
 
Note: A contract of future goods is always an agreement to sell, since the
ownership of the goods cannot be transferred before the goods come into
existence.
 
Example

Arvind, a manufacturer of computers, contracted to sell 100 computers to Kumar

at the rate of 8,000 per computer. Kumar agreed to purchase the computers.
However, the computers were yet to be manufactured by Arvind. This is an
agreement of sale of future goods not in the possession of seller at the time of
making the contract.

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