Section 7 Sale of Goods Act 1930 || Goods perishing before making of Contract || Sample answer

Sale of Goods Act is a part of Indian Contract Act Part II. Indian Contract II includes Special contract, sale of goods Act and Indian partnership Act. Here in this lesson we will only discuss section 7(Goods perishing before making of Contract) of Sale of Goods Act.

Section 7 states that “Where there is a contract for the sale of specific goods, the contract is void if the goods without the knowledge of the seller have, at the time when the contract was made perished or become so damaged as no longer to answer to their description in the contract”

Before going to the detailed discussion first we need to discuss about the essential condition mentioned in the section.

Essential conditions:

1. Contract should be the sale for specific goods.

2. At the time when the contract was made the specific goods must be damaged or perished.

3. The seller of the specific goods is unaware of the perished goods while making the contract.

4. The specific perished goods are not according to the description of the contract.

Now we will describe about these essential points in details.

The first point in essential condition states that the sale contract should be for specific goods. This section does not states about the meaning of specific goods but section 2(14) gives us the definition of Specific goods. Specific goods means goods which are identified and agreed upon at the time of a contract of sale.

The second essential point states that at the time of contract the goods are perished or damages. Here the term perished means goods are so damaged that it does not have any value in sale.

The third and fourth points states that the seller is unaware of the specific perished goods while making sale contract.  The specific goods are so perished that no longer match with the description of the sale contract.

As an example:

A has 400 kg of rice in his store room. A contracts with B to sale 200 kg of rice. At the time of making the contract the rice was in damaged condition and A was unaware of the condition of the rice. The contract of sale is void in this situation.

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