Sale of Goods (SOGA) Flashcards
(62 cards)
What is the Sales of Goods Act?
A law governing the sale of goods and the contracts associated with such sales.
The Act outlines the rights and duties of sellers and buyers under a contract of sale.
Define a contract of sale according to Sec 4(1) of the Sales of Goods Act.
A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.
This includes both the transfer of ownership and the payment of a price.
What is an agreement to sell as per Sec 4(2)?
A conditional contract.
The title passes at a future time subject to some condition being fulfilled later.
When does an agreement to sell become a sale according to Sec 4(4)?
When the time elapses or the conditions are fulfilled.
This marks the transition from a conditional agreement to an absolute sale.
What are the two types of contract of sale?
- Agreement to sell
- Sale
Agreement to sell is conditional, whereas a sale is an absolute contract.
What does the term ‘goods’ refer to in the context of a contract for sale?
All forms of moveable property including:
* Stocks & shares
* Growing crops
* Fixtures
* Things forming part of the land agreed to be severed before sale.
Goods do not include land, money, or actionable claims.
What are existing goods as defined in S2?
Goods already owned and possessed by the seller, which may be specific or unascertained.
Specific goods are identified at the time of contract, while unascertained goods are identified by description.
What are future goods according to S2?
Goods to be manufactured or acquired by the seller after the making of the contract of sale.
An example is a ship to be built by a seller to a specification.
What is the definition of ‘price’ in a contract of sale?
The consideration for the sale of goods, which involves an exchange between goods and money.
Barter is not considered a contract of sale.
What are the formation requirements for a contract of sale under S5(1)?
No special formalities are required; it can be made:
* In writing
* Orally
* Partly in writing and partly orally
* Implied from the conduct of the parties.
This provides flexibility in how contracts can be formed.
What are the two classifications of terms in a contract of sale?
- Condition
- Warranty
The classification depends on the construction of the contract.
Define a condition in a contract according to S.12(2).
A stipulation essential to the main purpose of the contract.
Breach of a condition allows the buyer to terminate the contract and claim damages.
What is a warranty in a contract as per S.12(2)?
A stipulation collateral to the main purpose of the contract.
Breach of a warranty gives rise to a claim for damages but does not allow for rejection of goods.
What is an implied warranty regarding quiet possession under S.14(b)?
The buyer shall have quiet possession of the goods unless specified otherwise.
This protects the buyer from wrongful interference by third parties.
What does S.14(a) imply about the seller’s right to sell goods?
The seller has a right to sell the goods, and if they do not, they cannot pass a good title to the buyer.
Breach of this condition allows the buyer to cancel the contract and claim a refund.
What is the main rule established by S.16(1)(a) regarding fitness for a particular purpose?
There is an implied condition that goods must be reasonably fit for a particular purpose of the buyer.
If the goods are not fit, the seller is liable for breach of this condition.
What are the four conditions to be fulfilled under S.16(1)(a)?
- Disclosure of purpose
- Reliance on the seller’s skill and judgement
- The goods supplied must be fit for the intended purpose
- The buyer must have relied on the seller’s expertise.
These conditions help establish the seller’s liability in case of non-fulfillment.
What is the seller liable for if they breach the condition of a sale?
The seller is liable for breach of this condition and the buyer is entitled to claim for damages and/or rescind the contract.
What are the four conditions that must be fulfilled under the particular purpose of the buyer?
- Disclosure of purpose
- Reliance on the seller’s skill and judgment
- The goods supplied are of the description which it is in the course of the seller’s business to supply
- The goods must not be bought under the patent or trade name.
In Griffiths v Peter Conway Ltd, why did the woman not succeed in her claim?
The woman did not disclose her sensitivity to the seller, and the coat would not harm a normal person.
True or False: If the description of the goods indicates only one purpose, no disclosure is required.
True
What must the buyer establish regarding reliance on the seller’s skill and judgment?
The buyer must establish that they had relied on the seller’s skill and judgment before purchasing the goods.
In Grant v Australian Knitting Mills, how is reliance typically inferred?
Reliance is usually inferred from the circumstances, such as purchasing from a retailer.
In Cammell Laird & Company v Manganese Bronze & Brass Co Ltd, what was the court’s decision regarding the propeller supplied?
The court held that the seller was liable for breach of implied condition because the buyer informed the seller of the purpose for which the propeller was needed.
