Posts

Showing posts with the label SALE OF GOODS

STATUTORY IMPLIED TERMS

•S 12. Implied Condition as to title •the Sale of Goods makes it clear the it is an implied condition that the seller must have a right to sell •In Rowland v Divall [1923] the plaintiff was succeeded to rescind the contract and seek restitutio in integrum •Section 6(1)(a) of UCTA 19777:The condition in 12(1) cannot be excluded by an exemption clause •s12(2):freedom from encumbrances & quiet possession •These are the only two statutory implied terms that are categorised as ‘warranties’ •possession is disturbed by the lawful act of a third person who asserts a superior title or a right which impairs the buyer’s title •where there was a breach of 12(1) there will normally be a breach of 12(2)(b); however, the remedy may differ (Mason [1949]) •S 13- Goods sold by description •Where there is a contract for the sale of goods by description, there is an implied [term] that the goods will correspond with the description. •If the sale is by sample as well as by description it is not suffici...

PASSING OF PROPERTY IN THE GOODS

•Passing of the property in the goods •Passing of the property: why is it important? •In a nutshell, it signifies the moment when the seller cease to be, and the buyer becomes the owner of the goods •The buyer bargains for the ‘property in goods’ and not in their ‘possession’ •Agreement to Sell •The Contract is executory •Any remedy against the seller is in damages for breach •The risk of loss is on the seller •If the seller becomes insolvent, the buyer has no rights to the goods •Where the buyer becomes insolvent the seller can claim the goods back •The buyer cannot insist on in rem rights against third parties (Sillavan v Aliakmon 1986) •Sale agreements •There is a conveyance in addition to the contract •The buyer has in rem rights •The buyer is left with all the responsibility for the goods, including risk of lost •The doctrine of frustration is inapplicable; s 7 of SGA •Where the seller becomes insolvent the buyer can claim the goods •Risk •General Rule: Any damage to goods ought t...

DUTIES OF THE PARTIES

•Essential duties •s 27 Duties of seller and buyer •It is the duty of the seller to deliver the goods, and of the buyer to accept and pay for them, in accordance with the terms of the contract of sale. •The duty to deliver enshrined in s 27 does not necessarily include a duty to transfer property •Cont. •In the statutory sense delivery means the ‘transfer of possession from one person to another •Accordingly it does not necessarily mean physical delivery •Place of delivery •Unless agreed otherwise by the parties, the place of delivery is the seller’s place of business •If the contract is for specific goods , which are known when the contract is made to be in some other place, then that place is the place of delivery •Three forms of deliver •(1) Actual, or physical delivery •(2) Symbolic delivery •(3) Constructive delivery •s 28 Payment and delivery are concurrent conditions •Unless otherwise agreed, delivery of the goods and payment of the price are concurrent conditions •The seller ca...

CLASSIFICATION OF TERMS

•Lecture 2 •Classification of terms and ‘express’ terms •The traditional classification of terms •Conditions: A condition is an essential term of the contract which goes to the heart of the contract •Warranties: A warranty, on the other hand, is a lesser, subsidiary term of the contract. These are collateral to the main purpose of the contract •The importance of the distinction •A breach of a condition enables the party who is not in breach of the contract (whatever the gravity of the breach) either to terminate the performance of the contract and recover damages for the breach or to affirm the contract and recover damages for the breach •A breach of a warranty only enables the innocent party to claim damages, and must continue to perform his obligations under the contract. •The immergence of innominate terms •There are many contractual undertakings which cannot be categorised as being "conditions" or "warranties" •some breaches will, and others will not, give rise ...

PASSING OF PROPERTY IN THE GOODS

•Lecture 4 •Passing of the property in the goods •When does the property in the goods pass (unascertained goods) •No property can pass in unascertained goods which were not appropriated to the contract or purchaser Re London Wine Co [1986] •In Re Stapylton Fletcher [1994] the court found that the property in the goods had been sufficiently appropriated by segregating the relevant quantity of wine from their general trading stock and placing it into separate storage. •s 20A of the Sale of Goods Act 1979 •This section gives proprietary remedies to a buyer of goods forming part of a larger bulk (See Re Wait [1927]) •a precondition is that the goods subject to the sale are forming part of an identified bulk, and that the goods had been prepaid or partially paid for •Cont. •Unless otherwise agreed by the parties , property in an undivided share In the bulk is transferred to the buyer •The buyer becomes an owner in common of the bulk s 2A(2)(b) •The buyer becomes an owner in common, not the ...