The Sale of Goods Act 1893 (a statute of general application), the Sale of Goods Law of the States, alongside other relevant statutes, rules of Contract, Common law and equity apply to contracts for the sale of goods-Henry Stephens ltd V Complete Home Enterprise, Section 61(2) of the Sale of Goods Act, United Scientific Holdings […]
PRICE OF GOODS. Price is an indispensable element of a contract for the sale of goods as seen from the definition in Section 1(1) of the Act (“for a monetary consideration called a price”). Trade by barter cannot be governed by the act but if money is introduced (whether fully or partly) then the agreement […]
TERMS OF THE CONTRACT. Various representations are made to induce one party to enter a contract. “Oga, this bicycle na confam German o no be China”. Or “Gentleman, this store is authenticated by Apple. You can buy any of our laptops or phones without issues”. It all goes on. But from the legal perspective, the […]
IMPLIED TERMS. Initially, at common-law the principle of caveat emptor (buyers beware) applied. As time and commercial transactions evolved, certain terms became necessary. Section 12-15 of the act implies certain conditions and warranties to a contract for the sale of goods to protect gullible buyers. 12(1) Quiet possession. 12(2). Freedom from encumbrances. 12(3) 13. Fitness […]
IMPLIED CONDITION AS TO TITLE This can be seen as a manifestation of the maxim; Nemo dat quad non habet (you cannot give what you do not have). Section 12(1) of the act provides that unless a contrary intention appears, there is an implied condition that the seller has the right to sell goods or […]
WARRANTY OF QUIET POSSESSION. Section 12(2) of the act provides that there is an implied warranty that the buyer shall have and enjoy quiet possession of the goods. This means that if after the sale of the goods, the buyer’s possession is disturbed by the lawful act of a third party/the wrongful act of the […]
IMPLIED CONDITION AS TO DESCRIPTION. By Section 13 of the Sale of Goods Act, where goods are sold by description, there is an implied condition that the goods must correspond with the description. Irrespective of the fact that the goods corresponds with a sample. In Grant V Australian Knitting Mills a buyer went into a […]
FITNESS FOR PURPOSE AND MERCHANTABLE QUALITY. FITNESS FOR PURPOSE. Section 14 starts with the caveat emptor rule (i.e. buyer beware) and then puts the exception thus: Except Where the buyer, showing reliance on the seller’s skill and judgment, tells him the purpose for which the goods are required… and the description of the goods is […]
SALE BY SAMPLE. Section 15(1) provides that for a sale to be one by sample, there must be a term in the contract to that effect. Thus, merely showing a sample of the goods during negotiation does not make the contract a sale by sample. In Gardiner V Gray the parties contracted to sell waste […]
THE PASSING OF PROPERTY. By Section 1(1) of the Sale of Goods Act: ‘a contract whereby the seller transfers or agrees to transfer property in goods for a monetary consideration called price”. As such, the main aim of a contract for the sale for goods is the transfer of property. Section 1(3) then distinguished between […]
PERFORMANCE OF A CONTRACT FOR THE SALE OF GOODS. Section 27 of the Sale of Goods Act provides that the seller must deliver conforming goods and the buyer is to accept and pay for them in accordance with the contract. From the above, the essential elements of performance of a sale of goods contract entail: […]
