The sale of goods is the most common of all commercial contracts. Hence, the law of sale of goods is the most important law for all classes of the community. The law of sale of goods is based in the basic principles of mercantile law. It places a duty on the seller and buyer to fulfill obligations under the terms of contract.
The law relating to the sale of goods or movables in India is contained in the Sale of Goods Act, 1930. Prior to the enactment of the Sale of Goods Acts, 1930, the law of sale of goods was contained in chapter VII of the Indian Contract Act 1872. The Sale of Goods Act came into force from July l, 1930. The Act is applicable to the whole of India except the State of Jammu and Kashmir.
The Sales of Goods Act 1930 takes into account the basic principles of contract and makes a clear introspection of commercial transactions. Thus, the general rules applicable to contracts are also applicable to contracts of sale of goods, in so far as they are not inconsistent with the express provisions of the Sale of Goods Act.