What is Actionable Claim?

‘Actionable Claims’ means claims which can be enforced by a legal action or a suit, example a book debt. A book debt is not goods because it can only be assigned as per Transfer of Property Act but cannot be sold. Same is case in the case of bill of exchange, promissory note etc. The negotiable instrument like promissory note can be transferred under Negotiable Instruments Act by mere delivery or endorsement and delivery, such instruments cannot be sold.

‘Money’ means current money. It is not regarded as goods because it is the medium of exchange through which goods can be bought. Old and rare coins, however, many be treated as goods and sold as such.

It may be mentioned that sale of immovable property is governed by the Transfer of Property Act, 1882.
The subject-matter of the contract of sale must be ‘goods’ According to Section 2(7) “goods means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.” Goodwill, trade marks, copyrights, patents right, water, gas, electricity,, decree of a court of law, are all regarded as goods. In the case of land the grass which forms part of land have to be separated from the land. Thus where trees sold so that they could be cut out and separated from the land and then taken away by the buyer, it was held that there was a contract for sale of movable property or goods (Kursell vs Timber Operators & Contractors Ltd.). But contracts for sale of things ‘forming part of the land itself’ are not contracts for sale of goods. For example, a contract for the sale of coal mine or building-stone quarry is not a contract of sale of goods.

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