Unascertained goods are
⦁ Yet to be manufactured
⦁ Purely generic
⦁ Yet to be agreed upon
Specific goods have been identified or agreed upon
Discharge of Contract by Frustration
This provision deals with perishing goods but there are certain issues to be noted:
⦁ The seller and buyer entered into a contract
⦁ The subject matter relates to specific goods
⦁ The goods have perished
⦁ Without the knowledge of the seller
⦁ The fact that the goods perished at the time of the contract of sale is an important fact
⦁ The result of such a contract is that it is a nullity/void
Not every frustrated contract is a nullity (Balfore v. UAC) where no right or remedy can be claimed by any party
S6 and S7 Sales of Goods Act
James Borough, Mort v. Carter – The court held that at the time of making the contract or before performance, the chattels are or must be in existence or must still be existing at the time of performance.
Observe that Section 6 deals particularly with specific goods . When the contract relates to unascertained goods, the parties would still be bound by their obligations.
⦁ The words “perish/have perished” are to be understood in a commercial sense and not necessarily to mean complete physical destruction.
⦁ It is also not necessary that the entire subject matter had disappeared. It is enough where they are substantially badly affected – Barrow, Lane & Ballad v. Philip and Co. Ltd.
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