Sale Of Goods Act 1979 Consolidation Table - International Commercial Law

S. 2

CONTRACT OF SALE

• Defines contract for sale of goods.

• S2 (1) - A contract whereby the seller transfer or agrees to transfer the title in goods to the B for money consideration, called the PRICE.

S. 5

EXISTING & FUTURE GOODS

• Present/ existing/specific goods owned or possessed by the seller (can be identified and agreed upon at the time of the contract).

• Future goods to be manufactured or acquired by the seller after the making of the contract.

S. 7

PERISHED GOODS

• Where the agreement is to sell specific goods, and subsequently the goods perish, without any fault of either party, and before the RISK has passed to the buyer, the agreement is avoided.

• S8 (1) - Can be fixed by the contract, or left to be fixed in a manner agreed in the contract.

• S8 (2) - If not, buyer Pays a ‘reasonable PRICE’.

• S8 (3) - ‘Reasonable PRICE’ dependent on circumstances of each case.

S. 10

TIME

• 10 (2) - Time NOT of the essence unless parties agree to the contrary.

• 10 (2) - parties can agree whether or not time is of the essence with regard to any other term under the contract.

S. 13

DESCRIPTION

implied term P.71

• S13 (1) - implied term that goods sold by description will correspond such a description. (will not apply if B relied on its own skill and judgement. Does not exclude B’s right to inspect (breach of 13 may amount to misrep))

• S.13 is a condition

S. 15

SALE BY SAMPLE

Implied term

• S15 (2) - in the case of sale by sample, there is an implied term that:

1. The bulk will correspond with the sample in quality;

2. .....

3. The goods will be free from any defect, making their quality unsatisfactory.

S. 16

ASCERTAINED

• Unascertained goods no title passes to the buyer unless and until the goods are ascertained. (Go to s.18, Rule 5, for unascertained goods)

S. 18

RULES FOR ASCERTAINING INTENTION

Default Term

(Where the parties have failed to make provision for the passing of ownership s.18 is default provision to determine transfer of ownership)

• Intention to pass title:

Rule 1:

• Unconditional contract for the sale of specific goods in a Deliverable state the title passes to B when the contract is made (point of acceptance).

Rule 2:

• Sale of specific goods and S is bound to do something to the goods in order to put them in a Deliverable state, title does not pass until the thing is done and B is given notice of this.

Rule 3:

• Sale of goods in a Deliverable state and S is bound to weigh, measure, test or do some other act for the purpose of ascertaining the PRICE, title does not pass until the act/ thing is done and B has notice of this.

Rule 4:

• When goods are Delivered to B on approval or on sale or return or other similar terms, title passes to B when:

1. He signifies his approval or acceptance to S or does any act adopting the transaction;

2. If he does not signify his approval/ acceptance to the S but retains the goods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiration of that time, and, if no time has been fixed, on the expiration of a reasonable time. ]

Rule 5:

• See SGA

S. 28

Deli + Pay = Concurrent

• Unless otherwise agreed, Delivery of the goods and Payment of the PRICE are concurrent conditions (will h+appen at same time).