By virtue of the Sale of Goods Act, goods which form the subject of a contract of sale may either be:
- Existing goods i.e. Goods owned or possessed by the seller at the time of the contract. If I walk into Cake Lounge to buy an already made cake, then I have purchased an existing good or I buy a car from a dealer or an existing house or,
- Future goods i.e. goods to be manufactured or grown by the seller after the contract of sale .David and Stone is a property company. It sells, at times, houses off plan. This means that houses can be purchased before it is built. Again if I order a cake to be produced at a later date then the contract is for the sale of a future good.