sale and supply of goods Flashcards
what is the process that we go through when assessing a scenario problem?
we ask ourselves, are they a consumer or a trader?
we then ask which act do we look under? SOGA or CRA?
Then look in statute book and allocate rights to parties.
Then allocate remedies to parties.
what does the CRA apply to?
what does SOGA apply to?
CRA applies to consumers who buy something mainly or whoely outwith their business found in section 2(3) of the Consumer rights act 2015 so Traders and Consumers.
the Sals of Goods Act applies to people buying in their capacity as a company and not a consumer. seen in s2(2) of the CRA. so between commercial and private acts.
when is a person not a consumer? in certain circumstances.
any person is not a consumer if they attend an auction and they have the opportunity to attend the sale in person.
s2(6) CRA
where does the burden of proof lie if the seller wants to say that they are not a consumer?
burden of proof lies with the seller to prove the consumer is not a CONSUMER S2(4)
what is digital content?
digital content is not goods.
what is a trader under the CRA?
acting for purposes relating to that persons trade, business, craft or profession.
what is consumer under the CRA?
individual acting wholly or mainly outside that individuals trade craft business or profession
when working with a consumer what is the problem that we need to work with?
whether they are using the thing they’ve bought as more for their trade or personal life
what do we need confirmation of for there to be a valid contract?
we need to have a consensus in the price, consensus on the goods.
what are ascertained goods?
specific goods are specific items so you have a very clear individual items
un acertained goods
they will get a chunk out of it and it is all the same. like grain or wheat and you get 4 bags of this
what is seen in s 61(1) of the same of goods act?
this is for ascertained and unacertained goods
will the sale of goods act allow for the transfer of ownership of unacertained goods?
no it will not. refer to s16 of the act.
need to be ascertained first.
what happens if there is pre payment?
in this case there can be a transfer of ownership. in unacertained goods.
can you have goods that are going to be made for you?
yes. see s5.
can be made after the contract
is time required for a contract?
no time does not, if you miss your payment then that is a breach issue. S10.
what does S18 of the CRA do?
this explicitly says that no other terms may be implied into the contract. time is not included in this.
do we need the third party to have capacity?
ni we do not need the party to have capacity
transferring goods/title. what is the order that we need to look at?
seen in s12 of the SGA.
implied term that the goods
are: the seller has a right to sell the goods.
in the consumer rights act there is an implied term that the seller has a right to sell or transfer the goods.
if S12 is breached then this is a breach of contract.
buyer must have quiet possession.
so1. Right to sell
2. NO encumbrance
3. PROVIDE QUIET POSSESSION OF THE GOODS.
Interpretation of S12 in SOGA case?
Niblett v Confectioners Materials Co-
buyer sued under s12 court said you are incorrect in law and failed to say that there was a breach.
outlined that no encumbrance means branding as well.
road marking machines
contract of sale of a particular design. at the same time. someone else was seeking an intellectual property right at the same time and they got their patent. when they got their patent they sued the buyer. in breach of their patent. buyer sued the seller.
Court said- it was breach of quiet possession after the sale.
where you have an encumbrance that comes up later in time then it does not count unless it exists at time. but if it affects quiet possession this is forever.
legal encumbrance is at the time.
what happens if the rule of they are not the owner or they do not give quiet possession is breached? in S12?
then in S21- they acquire no better title in the goods than the seller.
cannot pass on what you don’t have.
is it a valid contract if S12 has been breached?
yes it is a valid contract as seen in Rowland v Divall- he sold a stolen car(he did not know it was stolen). buyer discovered it was stolen and sued. they said it was a valid contract and the buyer could recover the whole price.
the buyer has possession in the goods.
what happens if you buy a car and the battery fails after 3 days?
S12 breach?
yes a breach under the act but not S12. this is a defect action.
what are the exceptions to S12?
Seen in S21 ‘Unless’
unless they have done something through their conduct to preclude them from this right.
or S21(2) - other exceptions.
cases for personal bar?
Chat fields-Martin Walter Ltd v Lombard North Central Plc
Eastern Distributors Ltd v Goldring.
transfers ownership to innocent buyer.
what are the statutory exceptions?
case?
vehicles when seised. you have the right to sell it.
Bulbruin Ltd v Romanyszyn- we are not dealing with personal bar. it is not your fault if someone steals your stuff. so they said that the local authority as the police can transfer title. so a police auction is good.
what is the state passing on when they sell it. are you estopping the party who’s car it is? or are you transferring title to someone else?
what does S24 mean?
the seller is still in possession
ownership has transferred to someone else. he can validly pass possession onto the second buyer. why is the seller still in possession if he has sold the goods and property has transferred?
ownership is transferred when you intend it to transfer. nothing to do with payment, transfer or anything else.
so seller can be in position for a long time.
retention of title clause.
seen in SGA S19.
you could write in your contract that ownership does not transfer until the money has been paid. and of course ownership only passes with intention so it does not pass.
he still owns that stuff. retention of title you hand over possession but you are still the owner.
lecture 3
lecture 3
what is the exception the the buyer is in possession? what section?
S25(1) where- retention of title clause will not protect the seller if there is a sub buyer in good faith.
A passes the goods onto B, B does not own them and sells them onto C and C pays money and takes possession then C will get ownership despite the retention of title. this is to protect the sub buyer. he must not know about the retention of title clause.
installed ventilators. because strathclyde council was in good fair then they are protected.
Exception Accretion
A is the owner B has the goods B passes the goods to C. A, Transfers the ownership to C. title then corrects.
voidable title
you still have title.
Macleod v Kerr- fake
because the original owner failed to address the voidable tille he was personally barred from challenging that title now that it had been passed onto a successor.
what will be had to second sub section of section 12.
Regard will be had to the terms of the contract. the conduct of the parties and the circumstances of the case.
this is when it is difficult to ascertain when the parties intend for the property to pass
what if we really can’t see intention?
then we look towards the sale of goods act S18-sets out rules in specific circumstances.
are these rules guidance or are the courts bound to
are these rules in s 18 guidance or are the courts bound to follow these rules?
case of this?
has been said that they are guidance.
wood burn v Andrew Motherwell - in this example the ownership had transferred before the destruction?
it was quite clear when the parties wanted the ownership to transfer.
the rules where do we see these?
S18
are the goods ready for the delivery? you have an unconditional contract, goods are deliverable. they intend at the point the contract is made unless it is from their conduct
