Under the Sale of Goods Act, 1930, how does a contract that purports to sell future goods immediately…
Section 6(3) of the Sale of Goods Act, 1930 treats the purported present sale of future goods as an agreement to sell. The distinction is between a transfer of ownership now…
Choose your answer
Under the Sale of Goods Act, 1930, how does a contract that purports to sell future goods immediately operate?
Answer and explanation
Correct answer B
Section 6(3) of the Sale of Goods Act, 1930 treats the purported present sale of future goods as an agreement to sell.
The distinction is between a transfer of ownership now and a transfer at a future time or upon satisfaction of a condition.
Option feedback
Option A
Future goods cannot pass by a present sale under section 6(3).
Option B
Section 6(3) characterizes the transaction as an agreement to sell.
Option C
Prepayment does not displace the statutory classification of a purported present sale of future goods.
Option D
Section 6 permits a contract for future goods and specifies how a purported present sale operates.
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