L11: Sale of Goods

Question 1

Explain a contract for sale of goods.

Answer 1

It is a contract where seller agrees to transfer ownership in goods to a buyer for a money consideration called price.

Question 2

State the 4 terms implied by the sales of goods act

Answer 2

1. Title to goods
2. Description of Goods
3. Satisfactory Quality
4. Fitness for Purpose

Question 3

State the 3 factors to assess if a goods is of satisfactory quality

Answer 3

1. Description
2. Price
3. Other relevant circumstances

Question 4

When will a person lose the right to reject goods even if not of satisfactory quality?

Answer 4

1. Defect is specifically drawn to the buyer’s attention before contract is made
2. Where buyer examines before buying and the examination revealed the defect.

Question 5

Explain consumer protection act

Answer 5

It empowers consumer to demand a remedy when goods are not of satisfactory quality. The retailers must replace / repair a defective product.

Question 6

Under UCTA, the seller cannot exclude the liability for goods that:

Answer 6

1. Do not fit the description, not satisfactory quality and not fit for the purpose made known the the seller.

Question 7

Once buyer has accepted the goods, _______

Answer 7

he can no longer reject them, only remedy would be to claim damages.

Question 8

State the 2 seller’s remedies against the goods

Answer 8

1. Right to withhold delivery if seller is not paid
2. Right of Lien
   - Buyer becomes insolvent
   - Sold without agreeing on credit

Question 9

State the 2 seller’s remedies against the buyer

Answer 9

1. Action for the price of goods

2. Action for damages for non-acceptance

Question 10

State the 2 buyer’s remedies

Answer 10

1. Damages for non-delivery
2. Specific Performance
3. Rejection of Goods