Section 6 of SOGA : Section 6: Existing Or Future Goods

Explanation using Example

Imagine Sarah agrees to sell Tom 100 units of a new model of smartphone that her store is expecting to receive next month. The smartphones are future goods because they are not currently in Sarah's possession or owned by her at the time of the agreement.

The contract between Sarah and Tom is valid even though Sarah does not have the smartphones yet. This is because the law allows for the sale of goods that depend on a contingency—in this case, the arrival of the stock.

If, for some reason, the manufacturer fails to deliver the smartphones to Sarah, she cannot fulfill the contract with Tom. The agreement they made is considered an agreement to sell, which is conditional upon Sarah actually receiving the smartphones in the future.