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Intro To Sale Of Goods Contracts Notes

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? Sale of Goods Act 1979, as amended by: a) the Sale and Supply of Goods Act 1994 b) the Sale of Goods (Amendment) Act 1994 c) the Sale of Goods (Amendment) Act 1995
? If goods supplied with services, Supply of Goods and Services Act 1982 (SGSA 1982) applies
? Unfair Contract Terms Act 1977 (UCTA 1977) deals with exclusion clauses
? Consumer Rights Act 2014 (CRA)
? See Table on p. 43 for rel'p between CRA and old legislation

DEFINITIONS 'Sale of goods'


? SGA, s 2(1): "a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price" (can refer to hire agreements)
? SGA, s. 2(4): "Where under a contract of sale the property in the goods is transferred from the seller to the buyer the contract is called a sale"
? SGA, s. 61: "all personal chattels other than things in action and money"
? E.g. not land, cheques, services
? May be either existing (present) or future goods (SGA, 5(1))
? Existing goods may be
- Specific goods, identifiable at time of contract (2007 grey Mercedes, reg. T15 SHR)
- Unascertained purely generic goods (100 tons of potatoes)
- Specific quantity of goods from identified bulk (100 tons of potatoes from 200 tons currently stored in warehouse in Chatteris)
? Future goods do not yet exist (e.g. next year's crop); never specific
? Where goods have perished, contract is void (SGA, s. 6)



Duties of seller
? To deliver the goods (s. 29)
? To deliver the correct quantity (s. 30)
? To pass good title (s. 12)
? To deliver goods which
- Correspond w/ description (s. 13)
- Are of satisfactory quality and fit for purpose (s. 14)
- Correspond w/ sample (s. 15) Rights / Remedies of Seller
? To terminate / repudiate contract for breach of condition
? Action for the price (s. 49)
? Damages for non-acceptance (s. 50)
? Rights of the unpaid seller:
- Lien (s. 41)
- Stoppage in transit (s. 44, 45)
- Resale (s. 48)
? To retain title to the goods until paid (ss. 17, 19)

Duties of Buyer
? To accept delivery (s. 27)
? To pay for the goods (s. 27)

Rights / Remedies of Buyer
? To inspect the goods (s. 34)
? To reject the goods and refuse payment for breach of condition
? To damages for non-delivery (s. 51)
? To damages when the goods are accepted (s. 53)
? To request specific performance (s. 52)

Performanc e obligations

? Three 1) 2) 3)

categories of performance obligations: Default provisions (will apply unless agreed otherwise) Implied terms that can be excluded by agreement (s. 55) Implied terms that can never be excluded

? Contracts for services only (legal or accountancy advice)
- Service will be performed with rble skill and care (s. 13) Contracts
- Work will be carried out w/in rble time (if no specific time given) (s. 14)
- Rble charge will be paid (if no price fixed) (s. 15) for services ? Contracts for work & materials (where worker also supplies parts) - governed by SGSA 1982
? Contracts for finished products (e.g. on-site construction of fitted kitchen)
? Regulated by Consumer Credit Act 1974 Hire
? Buyer buys the goods from the finance house, pursuant to the credit purchase agreement
? Hirer obtains only possession, not title Hire

agreemen t

? Operating leases (short-term, multiple-use hire)

Leases of
? Finance leases (equipment supplied to one user for course of its working life goods (e.g. computers)


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