Sale of Goods Act, 1930

The Sale of Goods Act, 1930 is the core commercial law governing contracts for buying and selling goods in Pakistan, covering how such contracts are formed, what obligations sellers and buyers owe each other, and what remedies are available when something goes wrong.

Section 4 distinguishes a "sale" (where ownership of goods transfers immediately) from an "agreement to sell" (where transfer happens later or is conditional). Section 5 allows a contract of sale to be made in writing, orally, or implied from conduct. Sections 6-10 deal with the subject matter of the contract: goods can be existing or future goods, and Sections 7-8 address what happens if goods perish before or after the contract is formed, generally voiding the contract or agreement in such cases.

Sections 11-17 cover conditions and warranties -- the difference between a major term ("condition") that lets a buyer reject the contract if broken, and a lesser term ("warranty") that only gives a right to damages. Section 14 implies an undertaking that the seller has the right to sell the goods; Section 15 covers sale by description; Section 16 implies conditions of quality or fitness for purpose in certain circumstances; and Section 17 covers sale by sample.

Chapter III (Sections 18-30) governs when ownership ("property") in goods actually passes from seller to buyer, generally when the parties intend it to (Section 19), and sets rules for specific goods in a deliverable state. Section 26 provides that risk generally passes with ownership. Sections 27-30 address the transfer of title, including exceptions to the general rule that a seller cannot pass better title than they have, such as when a buyer or seller remains in possession of goods after a sale.

Chapter IV (Sections 31-44) sets out performance obligations: payment and delivery are concurrent conditions (Section 32) unless otherwise agreed, and the Act specifies rules on partial delivery, delivery of the wrong quantity, instalment deliveries, and a buyer's right to examine goods before accepting them (Section 41). Chapter V (Sections 45-54) protects an unpaid seller with a lien over the goods (Section 47) and a right of stoppage in transit (Sections 50-52) if the buyer becomes insolvent. Chapter VI (Sections 55-61) covers remedies for breach, including suits for the price, damages for non-acceptance or non-delivery, specific performance, and damages for breach of warranty. Section 64 sets rules for auction sales, including a prohibition on the seller secretly bidding to inflate the price unless the sale is expressly a right-to-bid auction.

This is a foundational, long-standing commercial statute (1930) with amendment footnotes reflecting changes in 1940, 1956, and 1962 (notably the inclusion of electricity, water, and gas within "goods"), so anyone applying a specific provision, especially around tax pass-through under Section 64A, should confirm against the current text.