Consumer Law: Sales of Goods Act
CONSUMER LAW
SALE OF GOODS ACT
Sale of Goods Act applies to all contracts for the sale of goods whether it be a commercial contract between two companies or two individuals for the supply of goods or the sale of everyday items. A contract of sale of goods is defined as a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a money consideration called the price.
In every contract for the sale of goods there must be the ordinary elements of a contract plus: goods, money consideration, transfer of property (s1)
Sale and agreement to sell: The Term “Contract for the sale of goods” includes (See section 1(3)).
a) A sale of goods (executed) “I will sell you this book”
b) An agreement to sell goods (executor) “I will sell you the book when the order arrives”.
1. A sale occurs when the ownership of the goods is transferred at the time of a contract. The rights of the parties:
a) The seller can sue the buyer for the price of the goods.
b) The buyer can sue the seller if he defaults or for conversion (for definition see page 236, footnote 7) if he wrongfully disposes of the goods.
c) The risk of any loss to the goods after sale is with the buyer as ownership has passed.
2. An agreement to sell arises where the ownership of the goods is to be transferred at a future time or subject to some conditions. The rights of the parties:
a) The seller has the right to sue the buyer for damages if he defaults.
b) The buyer, where the seller defaults, can only sue for damages.
c) The risk or any loss to the goods is with the seller as ownership has not passed.
Note: See sl(4) to determine when an agreement to sell becomes a sale contract.
Classification of goods: Goods which form the subject matter of a contract of sale may be: (s5 & 60)
a) Existing goods eg a particular car.
b) Future goods eg work in progress.
c) Specific goods. Before a sale can take place the goods must be identified and agreed upon.
d)
SALE OF GOODS ACT
Sale of Goods Act applies to all contracts for the sale of goods whether it be a commercial contract between two companies or two individuals for the supply of goods or the sale of everyday items. A contract of sale of goods is defined as a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a money consideration called the price.
In every contract for the sale of goods there must be the ordinary elements of a contract plus: goods, money consideration, transfer of property (s1)
Sale and agreement to sell: The Term “Contract for the sale of goods” includes (See section 1(3)).
a) A sale of goods (executed) “I will sell you this book”
b) An agreement to sell goods (executor) “I will sell you the book when the order arrives”.
1. A sale occurs when the ownership of the goods is transferred at the time of a contract. The rights of the parties:
a) The seller can sue the buyer for the price of the goods.
b) The buyer can sue the seller if he defaults or for conversion (for definition see page 236, footnote 7) if he wrongfully disposes of the goods.
c) The risk of any loss to the goods after sale is with the buyer as ownership has passed.
2. An agreement to sell arises where the ownership of the goods is to be transferred at a future time or subject to some conditions. The rights of the parties:
a) The seller has the right to sue the buyer for damages if he defaults.
b) The buyer, where the seller defaults, can only sue for damages.
c) The risk or any loss to the goods is with the seller as ownership has not passed.
Note: See sl(4) to determine when an agreement to sell becomes a sale contract.
Classification of goods: Goods which form the subject matter of a contract of sale may be: (s5 & 60)
a) Existing goods eg a particular car.
b) Future goods eg work in progress.
c) Specific goods. Before a sale can take place the goods must be identified and agreed upon.
d)