Intro

Question 1

Where is the definition of a contract for sale of goods found?

Answer 1

SGA 1979

s2 (1)

Question 2

SGA 1979 s2(1)

Answer 2

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

Question 3

In definition of contract for sale of goods, what is meant by contract?

Answer 3

• > Identical to common law
• > Offer, acceptance and consideration
• > With intent to create a legal realtionship

Question 4

In definition of contract for sale of goods, what is meant by property?

Answer 4

Ownership

Question 5

In definition of contract for sale of goods, which statute defines goods?

Answer 5

SGA 1979

s61(1)

Question 6

SGA 1979

s61(1)

Answer 6

-> Goods =

‘All person chattels other than things in a action and money’

Question 7

What is a personal chattel?

Answer 7

• > All tangible physical objects

- > Not land, that’s real property

Question 8

How can land be a chattel for the purpose of goods for sale?

Answer 8

• > Anything that is growing on (crops) or attached to the land is a good
• > As long as it is capable of being severed from the land

Question 9

Cases for software being subject to SGA 1979?

Answer 9

Mayor and Burgesses of London Borough of Southwark v IBM 2011

St Albans City District Council v International Computers 1996

Question 10

Mayor and Burgesses of London Borough of Southwark v IBM 2011

Answer 10

• This specific contract stipulated that title, copyright and all other proprietary rights remain vested in manufacturer
• Purchasers has only bought a license to use the software
• No transfer of property = not SGA

Question 11

St Albans City District Council v International Computers 1996

Answer 11

• Necessary to distinguish a programme from the disk, as disk itself can be goods
• If the specific contract is like SOUTHWARK then no transfer of property = not SGA
• No reason why another specific contract can’t involve the transfer of property in software, and that would be subject to SGA

Question 12

Why is specifically money consideration under SGA important?

Answer 12

Consideration for other contracts need only be something of economic value

Question 13

Aldridge v Johnson 1857

Answer 13

• Farmer exchange bullocks for some barley
• Barley was worth more than the bullocks, so the difference was paid in cash
• Held that it WAS 2 contracts for the sale of goods, as both the bullocks and barley had prices attached and money was given as consideration

Question 14

Cases for money consideration essential to be under SGA?

Answer 14

Alridge v Johnson 1857

Esso Petroleum v Commissioners of Customs 1976

Question 15

Esso Petroleum v Commissioners of Customs 1976

Answer 15

• Garages gave free gift per 4 gallons of fuel sold
• The gift was not a a contract for sale of goods, not subject to SGA
• The consideration for the gift was the ancillary contract for buying 4 gallons of fuel

Question 16

Difference between a sale and an agreement to sell?

Answer 16

• > Sale is instant transfer of property in goods as soon as contract complete
• > Agreement to sell does not transfer property in goods until a later date/condition is met

Question 17

Statute for a sale?

Answer 17

SGA 1979

s2(4)

Question 18

SGA 1979

s2(4)

Answer 18

Property in goods is transferred from S to B as soon as contract is made

Question 19

Statue for agreement to sell?

Answer 19

SGA 1979

s2(5)

Question 20

Can an agreement to sell become a sale?

Answer 20

YES

-> s2(6) SGA

Question 21

SGA 1979

s2(6)

Answer 21

An agreement to sell becomes a sale when:

• > Agreed time elapses or
• > A condition fulfilled
• > Subject to which the property in goods is transferred

Question 22

What are the 2 types of goods?

Answer 22

1) Specific

2) Unascertained

Question 23

What is a specific good?

Answer 23

• > Has been identified and agreed upon by the parties

- > It is the exact thing that will be sold, not one that looks like it, but that exact thing

Question 24

Statutory definition for specific goods?

Answer 24

SGA s61(1)
Identified and agreed upon at the time the contract for sale is made

Question 25

SGA 1979

s61(1)

Answer 25

Specific goods are goods that have been identified and agreed upon at the time the contract for sale is made

Question 26

What are unascertained goods?

Answer 26

• > No statutory definition
• > All goods that aren’t specific
• > May become specific at anytime after contract for sale is made

Question 27

What is the difference between existing and future goods?

Answer 27

• > Existing goods are owned/possessed by S

- > Future goods are to be manufactured/acquired by S after the making of the contract

Question 28

Statue for existing goods?

Answer 28

SGA

s5(1)

Question 29

SGA 1979

s5(1)

Answer 29

Existing goods are owned/possessed by S at the time of making the contract

Question 30

Statute for future goods?

Answer 30

SGA

ss5(1) AND s61(1)

Question 31

SGA 1979

ss5(1) and 61(1)

Answer 31

Future goods are to be manufactured/acquired by S after the making of the contract

Question 32

Why is it important to know whether or not the SGA applies to a contract?

Answer 32

• > Often determines type/extent of liability for defective goods etc
• > Implies into contracts certain terms which impose strict liability onto S

Question 33

Why are implied statutory terms important?

Answer 33

No need for express agreement between parties, automatically included

Question 34

What if no statute applies to the contract?

Answer 34

• > Only common law remedies available

- > Liability tends to be fault based

Question 35

What are the 3 essential components for a contract to be a contract for sales of goods under s2(1) SGA 1979?

Answer 35

1) Transfer of property from S to B
2) Property must be in goods
3) There must be money consideration