Sale Of Goods Flashcards
Clegg
V
Anderson
Safety
Yacht naught for £25000 held that there was a fault and the reasonable person would not have noticed this.
Reasonable person is not an expert
Glyweds distribution ltd
V
S koronka and co ltd
A reasonable price does not automatically equal the market value
The price must be fair and just to both parties which is not necessarily market value
Implied term to transfer good title
S12 SGA
S17 CRA
Duty to pass good unchallengeable title to goods in exchange for price
Promises they are free from any change or encumbrance not disclosed BEFORE contract made
Buyer is entitled to enjoy quiet possession
Niblett
V
Confectioners materials co ltd
Breach of right to to sell and Lord Atkins said quiet possession
c purchased condensed milk from D, ‘nissly’
Nestle said if tried to sell they would apply for injunction
Agreed not to and brough action against sellers
Held: sellers did not have right to sell and this entitled them to rescind contract
Lord Atkin also said breach of quiet possession
Microbeads ac
V
Vinhurst road markings
Breach of QP but not to sell
C purchased road markings machines from D, after 3rd party granted patent tight meaning C could not use machines unless granted license to do so
No breach of right to sell as could at time but breach of QP as could not enjoy QP of goods
Nemo dat quod non habet
S21(1) SGA
Exceptions
Personal bar
Mercantile agent
Seller in possession after sale
Buyer in possession after sale
Voidable title?
Eastern distributors ltd
V
Gold ring
Personal bar
Where Owner of goods represents to buyer that person selling is owner or is acting as an agent
True owner is barred from denying that authority and buyer acquires good title
Mercantile agent
Exception to nemo dat
Factors act 1889
Archivent sales and development ltd
V
Strathclyde regional council
Buyer in possession after sale but ownership still with seller
Seller delivered goods on credit to contractor who was building school
Contractor sold goods to school
Ownership still passed as they acquired in good faith
MacLeod
V
Kerr
Voidable title.
A sold car to B, B paid with stolen cheque, B sold to C. A and C both claiming ownership
Held: belongs to C as voidable contract wasn’t challenged in time.
A may still have action against B for original purchase price but not car
Holder of voidable title is still owner so not strictly nemo dat
Woodburn
V
Andrew Motherwell
Transfer of ownership
S18 rules are only a guide to intention
Where intention clear under s17, not need to resort to rules
Munro
V
Balnagowan estate co
Rule 1 - deliverable state
Buyer enters sellers land to cut down and remove timbre
Ownership passed to buyer as goods in deliverable state
Gowans
V
Bowe and sons
Rule 2 - S under duty to do something which puts them in a deliverable state
Agreed when potatoes ready farmer would dig up and put in pits on farm. When B ready to collected was to lift clean and put potatoes in bags.
S became bankrupt after Ps put in pits
Held: property had passed and thing had been done which put them in deliverable state
Kennedy’s trs
V
Hamilton and Manson
Necessary weighing etc by S for ascertainment of price
Rule only applicable if duty is on seller
Brown
V
Marr
Rule 4 - goods delivered on approvals
Any act adopting transaction eg sells, lends, hires goods
Will constitute approval even if not explicitly stated