Chp 3 - SOGA Flashcards
Define CONTRACT OF SALE
OF GOODS
elements and sec? have 2
*Sec. 4(1) of SOGA 1957:
- Elements
contract, seller, transfer property in goods, buyer, price
- …a contract whereby the seller transfers or agrees to transfer the
property in goods to the
buyer for a price.
*1st Limb of Sec. 4(3) of SOGA 1957:
…the property in the goods
is transferred from the seller
to the buyer…
*ownership=property
Define GOODS, sec, with example
Section 2 of SOGA:
“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
*actionable claims = debt
*severed = to end title, possession, or interest
Examples:
-Movable Property
-Growing Crops
-Stock & Shares
-Grass
-Things attached to/forming part of the land; which are agreed to be severed before sale
FORMATION OF THE CONTRACT
OF SALE OF GOODS, with sect
- AGREEMENT/CONTRACT (s. 5 SOGA)
- PARTIES
- PRICE (s. 9 SOGA)
define formation by PARTIES
-Both parties shall have LEGAL CAPACITY to enter into the
contract
define formation by AGREEMENT/CONTRACT, sect?
(s. 5 SOGA)
-there must be an OFFER to buy/to sell goods at a price and the
ACCEPTANCE of such offer.
-The contract may provide for the:
i- immediate delivery of goods;
ii- immediate payment of the price; or
iii- both.
*The delivery & payment may be through installment
-Contract of sale may be made in:
i- writing;
ii- by words of mouth;
iii- partly in writing & partly in words; or
iv- may be implied from the conduct of parties.
define formation by PRICE, sect?
(s. 9 SOGA)
-price may be fixed by:
i- the contract itself;
ii- in the manner agreed in the contract;
iii- in the course of dealing between the parties; or
iv- paying a reasonable price, if the price is not determined in
any of the aforesaid ways.
*aforesaid ways = previously
CLASSIFICATION OF
GOODS (types)
Existing (Sec.6)
-Unascertained
-Specific
Future (Sec.2)
-Unascertained
-Specific
define CLASSIFICATION OF
‘GOODS with section (Existing, Future, SPECIFIC,UNASCERTAINED )
EXISTING GOODS (Sec.6)
*Already owned/ possessed
by the seller.
*May be specified/ agreed at
the time contract is made.
FUTURE GOODS (Sec.2)
Goods to be manufactured/
produced/acquired by the seller.
*After the making of the contract
of sale
SPECIFIC GOODS (Sec.2)
*Goods identified & agreed
upon at the time a contract of
sale is made.
UNASCERTAINED GOODS (Sec.18)
*Goods not identified & agreed upon at
the time a contract of sale is made.
*Goods identified by description only.
TERMS OF CONTRACT categories
CONDITION
Sec. 12(2)-Def: A stipulation
essential to the main
purpose of the contract, when breached there is a right to treat the
contract as repudiated.
WARRANTY
Sec. 12(3)-Def: A stipulation collateral to the main purpose of the contract , and when breached , can claim for damages, but not to a right to reject the goods & treat the contract as repudiated.
= requirement
General rule of BREACH OF CONDITION, sect?
s.13
a breach of condition entitles the
innocent party to repudiate the contract.
When does BREACH OF CONDITION becomes breach of contract? sect?
Exceptions:
Some situations where the contract cannot be repudiated, and the innocent party can merely claim damages)
- s.13(1)
Buyer waives
the condition/ elect to treat the
breach of condition as breach of warranty
*waives = reject/ abandon - s.13(2) + s.42
Contract is not severable, and the buyer has accepted the goods or part there of
*part there of = part of it - s.13(3)
Where the contract is specific goods and the property
in goods/ ownership has been transferred. - buyer yg nk jadikan warranty instead of condition
- buyer nk terima goods tersebut despite the breach
- specific goods and the ownership transferred kpd buyer
Types of implied condition and warranty
These implied terms apply only when the party to the contract of the sale have not excluded or modified them
5 IMPLIED CONDITIONS s. 12(2)
-!As to Title Sec. 14(a)
-Sale by Description Sec. 15
-!As to Merchantable Quality - Sec. 16(1)(b)
- !As to Quality/ Fit For purposes Sec. 16(1)(a)
-Sale by Sample -Sec. 17(1)
2 IMPLIED WARRANTIES s. 12(3)
-The buyer shall have quiet possession of the goods Sec. 14(b)
-The goods are free from any encumbrances - Sec. 14(c)
encumbrances = a mortgage or other claim on property or assets.
Define IMPLIED CONDITION AS TO TITLE , sect? case?
section 14 (a) of SOGA 1957
* seller must have the right to sell the goods (have ownership or legal title) in an agreement to sell.
* effect:
-breach of it by the
seller shall give right to the buyer to repudiate the contract
- recover the full price of the goods even though the goods have been
used
- buyer also can claim for damages if necessary
Case: ROWLAND v DIVALL
(story of stolen car)
held: plaintiff was allowed to repudiate the contract and claim for
the full price of the car
Addition: The defendant did not have the right to sell the goods as he did not obtain good title . Ownership remained with the original owner
Define IMPLIED CONDITION AS TO DESCRIPTIONS , sect? case?
section 15 of SOGA 1957
-there is an implied condition that the goods shall correspond with the description
Explanation:
the goods that the buyer buys by description, seller must deliver same with the description
Condition:
buyer havent seen the goods physically, relies on description, ie. mail order, online purchase, sale from catalogue
Effect:
breach of condition gives right to the buyer to repudiate the contract and reject the goods
Case:
ASSOCIATED METAL SMELTERS v
THAM CHEOW TOH
held: seller was in breach of implied condition that the goods shall correspond with description
