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Sga 1979 Consolidation Table Notes

LPC Law Notes > International Commercial Law Notes

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Sale of Goods Act FORMATION OF THE CONTRACT S. 2 CONTRACT OF SALE S. 4 HOW CONTRACT IS MADE S. 5 EXISTING &
FUTURE GOODS S. 6 PERISHED GOODS S. 7 PERISHED GOODS

?Defines contract for sale of goods
?S2 (1) - a contract whereby S transfer or agrees to transfer title in goods to B for money consideration, called PRICE
?Sets out how such a contract can be made
?S4 (1) - can be: (i) In writing; (ii) Made orally; or (iii) Implied by the conduct of the parties.
?Present/ existing/specific goods? owned or possessed by S (identified +
agreed)
?Future goods? to be manufactured or acquired by S after contract made
?Where contract is for sale of specific goods + goods have perished without knowledge of S at time contract made, contract is void
?Where agreement is to sell specific goods + subsequently goods perish, without fault of either party + before RISK passes to B, agreement is avoided

THE PRICE S. 8 (PRICE)

?S8(1) - can be fixed by contract, or left to be fixed in a manner agreed in contract
?S8(2) - if not fixed, B pays 'reasonable price'
?S8(3) - 'reasonable price? depends on circumstances of each case

IMPLIED TERMS S. 10 TIME S. 12 TITLE

Implied nonexcludable term

?10(2) - time NOT of the essence unless parties agree to the contrary
?10(2) - parties can agree whether time of the essence wrt any other term under contract
?Implied term that S has right to sell goods (CANNOT be excluded)
?S. 12(2) - sold free of charges/ encumbrances
?S. 12(3) - B will enjoy quiet possession
?International provisions: p. 80

?S13(1) - implied term that goods sold should comply with their descriptions
?Applies to websites, catalogues, brochures, ads S. 13 DESCRIPTIO ?B must know of and have relief on description
?Will not apply if B relied on own skill and judgement N implied term
? Does not exclude B's right to inspect
?S13 is a condition; breach may also amount to misrepresentation
?International provisions: p. 81 S. 14
? S14(2) - where S sells goods in course of business, implied term that goods QUALITY supplied under contract are of satisfactory quality FITNESS
? S14(2B) - factors to be taken into account include fit for the purpose Implied term commonly supplied, appearance and finish, freedom from minor defects, safety, durability
? S14(2C) - S not liable if defect drawn to B's attention before contract made or if should have been obvious upon examination
? S14(3) - if B expressly or impliedly tells S particular purpose of goods, implied term that goods are fit for that purpose
? S14(4) - must be fit for particular trade usage if rble, universally accepted by trade / profession, be certain, be lawful, and be consistent with express or implied terms of contract

? S14(6): terms implied under this section are conditions
? International provisions, pp. 82, 83

S. 15 SALE BY SAMPLE

Implied term

S. 15A

SLIGHT BREACH

CHART

?S15(2) - in case of sale by sample, implied term that: a) The bulk will correspond with sample in quality c) Goods will be free from any defect, making quality unsatisfactory
?Sale by sample normally also sale by description
?S15(2) is a condition
?International provisions, p. 84
?S15A (1): in case of contract for sale: a) B has right to reject goods for breach by S of term implied under s13, 14 or 15; but b) If breach is so slight that would be unrble to reject them then, if B does not deal as consumer, breach is treated as breach of warranty not condition Sectio Duty of S in Condition /
Remedy n relation to warranty s.12(1 Title Condition (s. Rejection and / or ) 12(5A)) damages s. Freedom from Warranty (s. Damages only 12(2) charges 12(5A)) s. Quiet possession Warranty (s. Damages only 12(2) 12(5A)) s. Description Condition (s. Rejection and / or 13(1) 13(1A) damages s. Satisfactory quality Condition (s. Rejection and / or 14(2) 14(6)) damages s. Fitness for purpose Condition (s. Rejection and / or 14(3) 14(6)) damages s. Sample Condition (s. Rejection and / or 15(1) 15(3)) damages

EFFECTS OF THE CONTRACT S. 16
?Unascertained goods? no title passes to the buyer unless and until the ASCERTAINE goods are ascertained. (Go to s.18, Rule 5, for unascertained goods) D
?Title in goods is transferred to the buyer at such time as the parties S. 17 intended it to. WHEN
? (In conjunction with s.19 (S may reserve the right of disposal of goods and PROPERTY retains title until certain conditions are fulfilled (note that B is free to sell PASSES the goods until S such time as S claims its RoT clause)), these two ss Default Term allow for RoT clause)
?Intention to pass title: S. 18 RULES FOR Rule 1:
- Unconditional contract for the sale of specific goods in a ASCERTAINI Deliverable state the title passes to B when the contract is made NG (point of acceptance). INTENTION Rule 2: 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)

RuleRuleSale 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. 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. 4: When goods are Delivered to B on approval or on sale or return or other similar terms, title passes to B when: a) He signifies his approval or acceptance to S or does any act adopting the transaction;

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