📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    According to Section 2(7) of the Sale of Goods Act,

    1930, which of the following would NOT be classified as "goods"? 
    A Growing crops and standing timber agreed to be severed before sale Correct Answer Incorrect Answer
    B Stock and shares of a company Correct Answer Incorrect Answer
    C An actionable claim against a third party for payment of a debt Correct Answer Incorrect Answer
    D Chattels (moveable property) such as furniture and vehicles Correct Answer Incorrect Answer
    E Things forming part of land agreed to be severed under the contract of sale Correct Answer Incorrect Answer

    Solution

    Section 2(7) defines "goods" as "every kind of moveable property other than actionable claims and money" and includes stock and shares, growing crops, grass, and things attached to land agreed to be severed before or under the contract of sale. Critically, actionable claims (like debts, accounts receivables, or legal rights to sue) are expressly excluded from the definition of goods. This distinction is important because actionable claims are intangible rights, not moveable property, and therefore fall outside the scope of the Sale of Goods Act. Such claims are governed by the Transfer of Property Act and general principles of contract law.

    Practice Next
    More Sale of Goods Act Questions

    Relevant for Exams:

    ask-question