Law 416
QUESTION
Malik runs a restaurant at Taman Desa Kluang, Johor. He ordered from Ah Chong Mini Market 50 bags of Pakistani basmati rice at RM40 per bag and 200 packets of sugar at RM2.20 per packet. It was expressly agreed between the parties that Ah Chong must pack the sugar in boxes containing 20 packets each. However, when Ah Chong delivered the goods to Malik's restaurant, it was found that the sugar was packed in boxes containing 30 packets each. The basmati rice that was supplied was found to be from India not Pakistan. Malik wishes to reject the goods. Advise Malik.
Problematic
Issue
Whether Malik can take legal action against Ah Chong for breach of implied condition by description.
Principles of Law
Section 2 of SGA
"Every kind of movable property other than actionable claims and money, and includes stocks and shares, growing crops, grass and thing attached to or forming part of land which are agreed to be severed for sale or under the contract of sale"
Section 15 of SGA
If the contract is for the sales of goods by description, there is an implied condition that the goods must correspond with the description.
Case: Moore & Co v Launder
Facts: Contract for 3,100 cases of canned fruit packed 30 tins to a case. But half of the cases contained only 24 tins although the total quantity was met.
Held: the goods not correspond with contractual description.The buyers entitled to reject the goods. Case: Nagurdas Purshotumdas v Mitsui Bussan Kaisha
Previous contract- sale of flour which had been sold in bags bearing a well-known trade mark.
Subsequent contract- flour ordered 'the same as our previous contract'.
Seller supplied flour of the same quality but did not bear the same well-known trade mark.
Held: there was a breach of condition as the goods did not correspond with the description.
Application
According to Section 2 of SGA, basmati rice and sugar are movable property. According to Section 15 of SGA, the
Malik runs a restaurant at Taman Desa Kluang, Johor. He ordered from Ah Chong Mini Market 50 bags of Pakistani basmati rice at RM40 per bag and 200 packets of sugar at RM2.20 per packet. It was expressly agreed between the parties that Ah Chong must pack the sugar in boxes containing 20 packets each. However, when Ah Chong delivered the goods to Malik's restaurant, it was found that the sugar was packed in boxes containing 30 packets each. The basmati rice that was supplied was found to be from India not Pakistan. Malik wishes to reject the goods. Advise Malik.
Problematic
Issue
Whether Malik can take legal action against Ah Chong for breach of implied condition by description.
Principles of Law
Section 2 of SGA
"Every kind of movable property other than actionable claims and money, and includes stocks and shares, growing crops, grass and thing attached to or forming part of land which are agreed to be severed for sale or under the contract of sale"
Section 15 of SGA
If the contract is for the sales of goods by description, there is an implied condition that the goods must correspond with the description.
Case: Moore & Co v Launder
Facts: Contract for 3,100 cases of canned fruit packed 30 tins to a case. But half of the cases contained only 24 tins although the total quantity was met.
Held: the goods not correspond with contractual description.The buyers entitled to reject the goods. Case: Nagurdas Purshotumdas v Mitsui Bussan Kaisha
Previous contract- sale of flour which had been sold in bags bearing a well-known trade mark.
Subsequent contract- flour ordered 'the same as our previous contract'.
Seller supplied flour of the same quality but did not bear the same well-known trade mark.
Held: there was a breach of condition as the goods did not correspond with the description.
Application
According to Section 2 of SGA, basmati rice and sugar are movable property. According to Section 15 of SGA, the