Sale of Goods Act

Sale of Goods Act (with its variations) regulates the sale of goods law in Malaysia, New Zealand, the United Kingdom and the common law provinces of Canada[1]

The Bill for an Act with this short title will have been known as a Sale of Goods Bill during its passage through Parliament.

Sale of Goods Acts may be a generic name either for legislation bearing that short title or for all legislation which relates to the sale of goods.

Implied Terms

Seller Has the Right to Sell

One can only transfer the ownership of a good if they are also the owner. The third party who bought in good faith will be weaker than the claim of the original owner.[2]

Description

Goods must correspond with their descriptions. If it is not, the seller will face strict liability. For business-to-consumer transactions this term cannot be excluded from the contract, however this term might be excluded in business-to-business transactions.[1]

Satisfactory Quality (USA: Warrant of Merchantability)

The goods must meet the reasonable person test of satisfactory quality. This means that the goods should be what a reasonable person would expect by considering price, description and other circumstances. However, this right is lost when a defect has been mentioned by the seller in advance or where the buyer inspected the good and the defect was obvious (not hidden or come into effect at a later point).[1]

Fit For Purpose

The goods must be reasonably fit for their purpose. This indicates that the buyer has to make the seller aware of why they would like to purchase the good. If that purpose has not been made clear, the buyer cannot claim any remedies.[1]

Model, Sample and Installation

Similar to the implied terms of description, the good must match the model, sample and installation unless the seller has pointed out the differences in advance. If the seller agrees to perform the installation or arranges the installation, that has to be performed correctly[1]

Parties Involved in the Sale of Goods

The sale of a good is usually done between two main parties:

B2C

Business to consumer in which one party acts as the business and the other party receives the good for private use.[3]

B2B

Business to business in which both parties act as businesses and sell the good for non-consumer sale.[3]

C2C

Consumer to consumer in which no party acts as a business entity.[3]

Rules and Risks involved in Transfer of Good between two parties

When a good is sold from party to party and the buyer becomes the owner, this is when they assume all the risks involved with the good. Even though the buyer is fully responsible for the good until they have paid the good in full, they still have duty to assume the loss or damage of the good. If the terms of ownership of risk are not defined by the parties, then the ‘default’ law of Sale of Goods applies.[4] For example, for a specific good, the ownership is identifying when the good is in the delivery stage. Additionally, for unascertained goods, the ownership is passed until the good is identified and sent to the buyer. On the other hand, when there is a business to customer sale, the business still has the duty to assume the risk of the good until it is delivered and received by the customer.[4]

List

Bangladesh

The Bangladeshi Sales of Goods Act was enacted when Bangladesh was part of Bengal Province, British India.

India

The Indian Sale of Goods Act 1930 is a mercantile Law, which came into existence on 1 July 1930, during the British Raj. It provisions for the setting up of contracts where the seller transfers or agrees to transfer the title (ownership) in the goods to the buyer for consideration. It is applicable all over India, except Jammu and Kashmir. Under the act, goods sold from owner to buyer must be sold for a certain price and at a given period of time.]

Malaysia

The Sale of Goods Act 1957

New Zealand

New Zealand's Sale of Goods Act was passed in 1908 by the Liberal Government of New Zealand. It was amended several times, including by the Sale of Goods Amendment Act 1961 and the Sale of Goods Amendment Act 2003,[5] before finally being repealed and replaced by Part 3 of the Contract and Commercial Law Act 2017.[6]

United States

The Sales of Goods Act was first passed in 1896.[7] Which has been replaced by Sales and Storage of Goods Act as of January 1, 2019.[8]

United Kingdom

The Sale of Goods Act was replaced by the Consumer Rights Act 2015, which covers contracts entered into from 1 October 2015.[9] The earlier legislation was:

See also

References
  1. Rasmussen, Scott (2011). "English Legal Terminology: Legal Concepts in Language, 3rd ed. By Helen Gubby. The Hague:Eleven International Publishing, 2011. Pp. 272. ISBN 978-90-8974-547-7. €35.00; US$52.50". International Journal of Legal Information. 39 (3): 394–395. doi:10.1017/s0731126500006314. ISSN 0731-1265.
  2. Rasmussen, Scott (2011). "English Legal Terminology: Legal Concepts in Language, 3rd ed. By Helen Gubby. The Hague:Eleven International Publishing, 2011. Pp. 272. ISBN 978-90-8974-547-7. €35.00; US$52.50". International Journal of Legal Information. 39 (3): 394–395. doi:10.1017/s0731126500006314. ISSN 0731-1265.
  3. Teece, David J. (April 2010). "Business Models, Business Strategy and Innovation". Long Range Planning. 43 (2–3): 172–194. doi:10.1016/j.lrp.2009.07.003. ISSN 0024-6301.
  4. Peters, L. (2000-08-01). "Alexander von Ziegler /Jette H. Ronoe /Charles Debattista /Odile Plegat-Kerrault (eds.), Transfer of Ownership in International Trade, Kluwer Law International, The Hague/London/Boston /ICC Publishing SA, Paris/New York, 1999, pp. vi + 437, ISBN Kluwer 90-411-1220-0 /ICC 92-842-1197-2". Uniform Law Review - Revue de droit uniforme. 5 (3): 632. doi:10.1093/ulr/5.3.632. ISSN 1124-3694.
  5. "Sale of Goods Act 1908". Parliamentary Counsel Office, New Zealand. Retrieved 21 October 2014.
  6. "Contract and Commercial Law Act 2017". Parliamentary Counsel Office, New Zealand. Retrieved 11 February 2019.
  7. "Sale of Goods Contract | UpCounsel 2019". UpCounsel. Retrieved 2020-04-13.
  8. "Practical Law US Signon". signon.thomsonreuters.com. Retrieved 2020-04-13.
  9. "Sale of Goods Act". Which? Consumer Rights. Retrieved 1 March 2017.
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