Sale of goods Act 1908 Flashcards
When does the sale of goods Act 1908 apply?
For the sale
Of goods
Section 3(1) defines a contract as a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price.
What are goods?
Goods are defined in Section 2(1) of the Sale of Goods Act 1908.
They are defined as:
(a) all chattels personal, other than money or choses in action
(b) emblements (Crops which are cultivated for harvest), growing crops and things attached to or forming part of the land that are agreed to be severed before sale or under the contract of sale
(c) to avoid doubt, computer software.
What are the four sections of the Sale of Goods Act 1908 which imply terms?
Section 14 - Implies terms dealing with good title, quiet possession, and the absence of charges.
Section 15 - Implies terms for sales by description
Section 16 - Implies terms regarding quality and fitness
Section 17 - Implies terms for sale by sample
With respect to the three parts of Section 14, how are they classified (condition or warranty)?
A condition that the seller has the right to sell the goods
A warranty that the purchaser will have quiet possession of the goods.
A warranty that the goods are free from incumbrance or charge.
Is section 15 a warranty or condition?
It is an implied condition when selling goods by description that the goods supplied will meet that description.
What are the four parts discussed in Section 16?
Quality or fitness is not a condition or warranty unless,
a) The buyer expressly or by implication makes it known the intended purpose so as to show that the buyer relies on the seller’s skill or judgment. There is an implied condition that they will be fit for purpose.
b) Where goods are bought by description there is an implied condition that the goods will be merchantable quality, unless a sample is provided for examination and such examination should have revealed a defect.
c) An implied warranty or condition as to quality or fitness may be annexed by usage in trade
d) An express warranty or condition does not negative a warrant or condition implied by this act unless it in inconsistent therewith.
The condition that goods must be fit for purpose is implied into a contract if these elements are met.
The buyer makes the purpose for which goods are required known to the seller AND
The buyer relies on the seller’s skill and judgment AND
The goods are of a kind which it is in the course of the seller’s normal business to supply
What four things may effect if goods are merchantable quality?
Whether the goods are new or second hand
The price of the goods.
The nature of the defect
Whether the buyer is using the goods for a normal purpose or for an unusual purpose.
What three things are required under S17 with respect to sale by sample?
a) the goods must be of the same quality as the sample
b) the buyer must be given a reasonable chance to inspect the goods and compare them with sample
c) the goods must not have any defect which would not be apparent on a reasonable inspection of the sample.
Do parties to a sale have to have to be governed by the sale of goods act 1908?
No they may contract out under S56
Who carries the risk with respect to goods?
S22 of the Sale of Goods Act 1908 says that the goods remain the seller’s risk until property therein is transferred to the buyer
If there is a Romalpa clause what happens if goods are changed?
Retention of ownership only survives for as long as the goods retain their essential or original character.
They must still be recognisable as the goods sold:
- If the goods become so processed or so mixed up with other goods that they are no longer recognisable as the goods sold, the seller will not retain ownership
- If the goods become fixed to land or immovable property, the seller will not retain ownership.
With respect to Romalpa clauses, what is required under the Personal Properties Securities Act 1999?
The agreement retaining ownership has been put in writing an signed by the buyer AND
The agreement has been registered on a register created by this Act, called the Personal Properties Register
What are the five rules as to when property passes under S 20
Rule 1
In a deliverable state, the goods pass when the contract is made, regardless of the time of payment or delivery
Rule 2
When there is a requirement for the seller to do something to put goods into a deliverable state, goods pass once that thing is done and the buyer is notified
Rule 3
Where the contract is for the sale of goods in a deliverable state, and the seller needs to; weigh, measure, test, or do some other thing with respect to the goods for the purpose of determining the price, the property passes once that thing is done and the buyer has been given notice.
Rule 4 - Sale or return
Where goods are delivered to the buyer on approval, or on sale or return or other similar terms, the property therein passes to the buyer:
when he signifies his approval or acceptance to the seller, or does any other act adopting the transaction.
if he does not signify his approval or acceptance to the seller, but retains the goods without giving notice of rejection then, if a time has been fixed for the return of the goods, on the expiration of such time, and if no time has been fixed, on the expiration of a reasonable time.
Rule 5
