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Section 76: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 75 All 266 Sections of Indian Contract Act Section 77

Legal Commentary & Landmark Judgments: Section 76

Section 76 of the Indian Contract Act, 1872 originally defined 'goods' as every kind of movable property; repealed and superseded by Section 2(7) of the Sale of Goods Act, 1930 (Act 3 of 1930), its historical definition remains foundational to the commercial understanding of subject matter in sales contracts and tax jurisprudence.

  • Original Statutory Lexicon of Goods: Originally defined 'goods' in Chapter VII of the 1872 Act as every kind of movable property, covering merchandise, machinery, securities, and actionable corporeal chattels.
  • Legislative Repeal and Modern Succession (Act 3 of 1930): Repealed by Section 65 of the Indian Sale of Goods Act, 1930 and re-enacted with refinement in Section 2(7) of the 1930 Act, defining goods as every kind of movable property other than actionable claims and money, including stocks, shares, and growing crops.
  • Foundational Role in Commercial and Constitutional Jurisprudence: Continues to be invoked by constitutional benches to determine the taxable essence of 'sale of goods' under Entry 54, List II of the Seventh Schedule to the Constitution of India.
Key Landmark Precedents:
  • State of Madras v. Gannon Dunkerley & Co. (Madras) Ltd. 1959 SCR 379 / AIR 1958 SC 560: A 5-Judge Constitution Bench traced the historical evolution of the definition of goods from Section 76 of the Contract Act 1872 to Section 2(7) of the Sale of Goods Act 1930, holding that 'sale of goods' in legislative lists possesses the same legal meaning as in these foundational statutes.
  • Tata Consultancy Services v. State of A.P. (2005) 1 SCC 308: A 5-Judge Constitution Bench traced the lineage of 'goods' from Section 76 of the Contract Act, 1872 to the Sale of Goods Act, holding that software embedded on physical media constitutes 'goods' capable of being sold and taxed.
Courtroom Practice & Strategic Litigation Guidance:

In commercial litigation and works contract disputes, analyze whether the transaction involves 'goods' under the Section 76/Sale of Goods Act lineage or represents an indivisible contract for work and labour. Cite Gannon Dunkerley and TCS to establish whether the supply is governed by sale of goods rules or general contract law.

Section 75 All 266 Sections of Indian Contract Act Section 77