Short Answer

Existing goods are goods that are already owned or possessed by the seller at the time of making the contract of sale. These goods are physically available and ready for immediate delivery or sale.

According to the Sale of Goods Act, 1930 in India, existing goods include specific goods and unascertained goods. These goods play an important role in determining ownership and transfer of risk in a contract.

Detailed Explanation:

Existing Goods

Meaning of Existing Goods

Existing goods refer to those goods that are already in existence and owned or controlled by the seller at the time when the contract of sale is made. These goods are available for sale immediately or can be delivered without delay.

Under the Sale of Goods Act, 1930, goods are classified based on their availability and identification. Existing goods form an important category because they are certain and present at the time of agreement, unlike future goods which are yet to be produced.

For example, if a shopkeeper sells a television that is already in the shop, it is an example of existing goods. Since the goods are already available, the transaction can be completed quickly.

Types of Existing Goods

Existing goods can be further divided into two main types:

1. Specific Goods
   These are goods that are clearly identified and agreed upon at the time of the contract. They are unique and easily distinguishable.
   For example, a particular car with a specific registration number is a specific good.
2. Unascertained Goods
   These goods are not specifically identified at the time of the contract. They are described in general terms such as quantity or type.
   For example, 100 bags of rice from a large stock are unascertained goods until they are separated and identified.

Features of Existing Goods

Existing goods have some important characteristics:

• They are already in existence at the time of the contract.
• They are owned or possessed by the seller.
• They can be delivered immediately or within a short time.
• They provide certainty in the contract as they already exist.

Because of these features, contracts involving existing goods are usually simpler and less risky compared to contracts involving future or contingent goods.

Importance of Existing Goods

Existing goods are very important in business transactions because they reduce uncertainty. Since the goods are already available, both the buyer and seller know exactly what is being sold and purchased.

The rules regarding transfer of ownership and risk are easier to apply in the case of existing goods. For example, in specific goods, ownership may pass immediately if the contract is unconditional. This helps in avoiding disputes.

Also, existing goods make the process of delivery faster. There is no need to wait for production or occurrence of any future event. This makes business transactions more efficient and reliable.

Conclusion

Existing goods are goods that are already available and owned by the seller at the time of the contract. They include specific and unascertained goods. These goods are important because they provide certainty, quick delivery, and clear transfer of ownership in a contract of sale.