Sale of Goods Act 1979

Topics: Contract, Contract law, Contractual term Pages: 9 (2996 words) Published: March 3, 2011
During the nineteenth century there was a development in commercial law through the common law and the process was achieved by codification of certain defined area. Sir Mackenzie Chalmers drafted the following acts Bills of Exchange Act 1882, The Sale of Goods Act 1893 and the Marine Insurance Act 1906 and out of these The Sale of Goods act was amended particularly by the Supply of Goods Act 1973 and then the law solidified the Act as Sale of Goods Act 1979 which came into existence on 1st January 1980.The 1979 act has itself be modified, mainly by the Sale and Supply of Goods Act 1994 ,Sale of Goods Act 1995 and Sale and Supply of Goods to Consumers Regulations 2002.

Sale of Goods Act 1979
Contract for the sales of goods is considered as one of the distinguished contract in the present day.
Definition of sale contract as on Section 2(1) of the Act

“In a contract when a seller transfers or agrees to exchange the belongings in goods to the buyer for a financial consideration called price”

Alternate definition is given in Subsection (3) and (4) for two transaction as

(3) “In a contract of sale if the property in goods is transferred from a seller to purchaser the contract is called as sale” (4) “Where under a contact of sale the transfer of property in the goods is to take place at a future time or subjected to some conditions later to be fulfilled the contract is called as an agreement to sell”

Conditions & Warranties

Condition and warranties are the two important terms used in a contract and Sale of Goods Act draws throughout distinction between the terms “condition” and “warranty”. The classifications of condition in English law are generally considered as imperfect and unsatisfactory but if a condition in a contract is breached, the offended party can repudiate and claim damages. A violated condition gives an automatic right to reject. Any implied terms from legislation or statute are conditions. A warranty is ancillary to main aim of contract and its meaning was considerably widened in the law of contract but if a warranty is breached, the wronged party can only sue for indemnity but no right to reject the goods and treat the contract as repudiated. On analysing this, a term in a contract is classified into condition or warranty which entirely depends on the construction of the contract. Sometimes a term can be condition even if it is called as warranty in the contract When condition to be treated as warranty

Subsection (2), (3) & (4) of section 11 of the act explains when condition to be treated as warranty

2. When a sale contract is subjected to be fulfill by the vender the emptor may waive the precondition, or may elect to consider the violation of the condition as a breach of warranty and not as a reason for repudiating the contract.

3. if a term 'condition' is stated in a contract sale , the break of which may give the right to consider the contract as repudiated, or a warranty and the violation of which may give right to claim for damages but not the right to refuse the cargo or goods and treat the contract as terminated. This depends on the building of the contract on each case and a precondition may be a stipulation, though called a warranty in the contract of sale. 4. If the buyer has acknowledged the goods or part of them and if a contract of sale is not dissociable the breach or violation of a condition to be fulfilled by the vendor can only be considered as a breach of warranty and not the right for refusing the goods and to repudiate the contract. This scenario is not valid if there is an unstated term of the contract to that effect. For buyer to waive a condition he must make a representation to the seller stating that he has no objection to goods as they are and the seller...

References: Dobson: Sale of Goods and Consumer Credit Fifth Edition (1996) Sweet & Maxwell publication Pg 102(7-04),pg 185(11-08)
Ewan McKenDrick, Contract Law Text, Cases and Materials (2nd Edition), Oxford University Press, 2005 Pg 959
E.R.Hardy Ivamy,Casebook on Sale Of Goods,Fifth Edition[1987] Lloyd’s of London Press LTD
Michael Mark ,Chalmers Sale of Goods (1981) Butterworths & Co Publishers,Pg 111
Michael Furmstone, Sale of Goods Corner publication LTD (1990) Pg 2
L S Sealy & R J A Hooley, Text and Materials in Commercial Law,(1994),Butterworth’s & Co Publishers,Pg 211
Sir Gordon Borrie ,Commercial Law ,Sixth Edition [1988],Butterworth’s & Co Publishers,Pg 50
Roger Brownsword an article on A New Look at the Right to Withdraw for Breach of Contract, 1992 Pg 57
* Bunge Corporation v Tradax Export SA (1981).
(Accessed on 01/11/2010)
* Cehave N.V. v Bremer Handelgesellschaft M.B.H on 01/11/2010)
* Hong Kong Fir Shipping Co Limited v/s Kawasaki Kisen Kaisha Limited" (1962). (accessed on 28/11/2010)
* Toepfer V Warinco AG [1978]. on 29/11/2010)
[ 4 ]. P.S. Atiyah,Prof J N Adams & Hector Macqueen, Sale of Goods(2005),Pearson Longman Publication ,Pg 8 
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[ 10 ]. Boone V Eyre (1977) 1HB 1 273n
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[ 16 ]. Michael Furmstone, Sale of Goods Corner publication LTD (1990) Pg 2
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[ 18 ]. Ewan McKenDrick, Contract Law Text, Cases and Materials (2nd Edition), Oxford University Press, 2005 Pg 959
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