SALE OF GOODS ACT 1979.docx

SALE OF GOODS ACT 1979.docx

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SALEOFGOODSACT1979

SALEOFGOODSACT1979

PARTI  CONTRACTSTOWHICHACTAPPLIES

1.   ContractstowhichActapplies

（1）  ThisActappliestocontractsofsaleofgoodsmadeonorafter（butnottothosemadebefore）1January1894.

（2）  Inrelationtocontractsmadeoncertaindates,thisActappliessubjecttothemodificationofcertainofitssectionsasmentionedinSchedule1below.

（3）  AnysuchmodificationisindicatedinthesectionconcernedbyareferencetoSchedule1below.

（4）  Accordingly,whereasectiondoesnotcontainsuchareference,thisActappliesinrelationtothecontractconcernedwithoutsuchmodificationofthesection.

PARTII  FORMATIONOFTHECONTRACT

Contractofsale

2.   Contractofsale

（1）  Acontractofsaleofgoodsisacontractbywhichthesellertransfersoragreestotransferthepropertyingoodstothebuyerforamoneyconsideration,calledtheprice.

（2）  Theremayacontractofsalebetweenonepartownerandanother.

（3）  Acontractofsalemaybeabsoluteorconditional.

（4）  Whereunderacontractofsalethepropertyinthegoodsistransferredfromthesellertothebuyerthecontactiscalledasale.

（5）  Whereunderacontractofsalethetransferofthepropertyinthegoodsistotakeplaceatafuturetimeorsubjecttosomeconditionlatertobefulfilledthecontractiscalledanagreementtosell.

（6）  Anagreementtosellbecomesasalewhenthetimeelapsesortheconditionsarefulfilledsubjecttowhichthepropertyinthegoodsistobetransferred.

3.   Capacitytobuyandsell

（1）  Capacitytobuyandsellisregulatedbythegenerallawconcerningcapacitytocontractandtotransferandacquireproperty.

（2）  Wherenecessariesaresoldanddeliveredtoaminorortoapersonwhobyreasonofmentalincapacityordrunkennessisincompetenttocontract,hemustpayareasonablepriceforthem.

（3）  Insubsection

（2）above'necessaries'meansgoodssuitabletotheconditioninlifeoftheminororotherpersonconcernedandtohisactualrequirementsatthetimeofthesaleanddelivery.

Formalitiesofcontract

4.   Howcontractofsaleismade

（1）  SubjecttothisandanyotherAct,acontractofsalemaybemadeinwriting（eitherwithorwithoutseal）,orbywordofmouth,orpartlyinwritingandpartlybywordofmouth,ormaybeimpliedfromtheconductoftheparties.

（2）  Nothinginthissectionaffectsthelawrelatingtocorporations.

Subjectmatterofcontract

5.   Existingorfuturegoods

（1）  Thegoodswhichformthesubjectofacontractofsalemaybeeitherexistinggoods,ownedorpossessedbytheseller,orgoodstobemanufacturedoracquiredbyhimafterthemakingofthecontractofsale,inthisActcalledfuturegoods.

（2）  Theremaybeacontractforthesaleofgoodstheacquisitionofwhichbythesellerdependsonacontingencywhichmayormaynothappen.

（3）  Wherebyacontractofsalethesellerpurportstoeffectapresentsaleoffuturegoods,thecontractoperatesasanagreementtosellthegoods.

6.   Goodswhichhaveperished

 Wherethereisacontractforthesaleofspecificgoods,andthegoodswithouttheknowledgeofthesellerhaveperishedatthetimewhenacontractismade,thecontractisvoid.

7.   Goodsperishingbeforesalebutafteragreementtosell

Wherethereisanagreementtosellspecificgoodsandsubsequentlythegoods,withoutanyfaultonthepartofthesellerorbuyer,perishbeforetheriskpassestothebuyer,theagreementisavoided.

Theprice

8.   Ascertainmentofprice

（1）  Thepriceinacontractofsalemaybefixedbythecontract,ormaybelefttobefixedinamanneragreedbythecontract,ormaybedeterminedbythecourseofdealingbetweentheparties.

（2）  Wherethepriceisnotdeterminedasmentionedinsubsection

（1）abovethebuyermustpayareasonableprice.

（3）  Whatisareasonablepriceisaquestionoffactdependentonthecircumstancesofeachparticularcase.

9.   Agreementtosellatvaluation

（1）  Wherethereisanagreementtosellgoodsonthetermsthatthepriceistobefixedbythevaluationofathirdparty,andhecannotordoesnotmakethevaluation,theagreementisavoided;butifthegoodsoranypartofthemhavebeendeliveredtoandappropriatedbythebuyerhemustpayareasonablepriceforthem.

（2）  Wherethethirdpartyispreventedfrommakingthevaluationbythefaultofthesellerorbuyer,thepartynotatfaultmaymaintainanactionfordamagesagainstthepartyatfault.

Impliedtermsetc.

10. Stipulationsabouttime

（1）  Unlessadifferentintentionappearsfromthetermsofthecontract,stipulationsastotimeofpaymentarenotoftheessenceofacontractofsale.

（2）  Whetheranyotherstipulationastotimeisorisnotoftheessenceofthecontractdependsonthetermsofthecontract.

（3）  Inacontractofsale'month'primafaciemeanscalendarmonth.

11. Whenconditiontobetreatedaswarranty

（1）  ThissectiondoesnotapplytoScotland.

（2）  Whereacontractofsaleissubjecttoaconditiontobefulfilledbytheseller,thebuyermaywaivethecondition,ormayelecttotreatthebreachoftheconditionasabreachofwarrantyandnotasagroundfortreatingthecontractasrepudiated.

（3）  Whetherastipulationinacontractofsaleisacondition,thebreachofwhichmaygiverisetoarighttotreatthecontractasrepudiated,orawarranty,thebreachofwhichmaygiverisetoaclaimfordamagesbutnottoarighttorejectthegoodsandtreatthecontractasrepudiated,dependsineachcaseontheconstructionofthecontract;andastipulationmaybeacondition,thoughcalledawarrantyinthecontract.

（4）  Subjecttosection35Abelowwhereacontractofsaleisnotseverableandthebuyerhasacceptedthegoodsorpartofthem,thebreachofaconditiontobefulfilledbythesellercanonlybetreatedasabreachofwarranty,andnotasagroundforrejectingthegoodsandtreatingthecontractasrepudiated,unlessthereisanexpressorimpliedtermofthecontracttothateffect.

（6）  Nothinginthissectionaffectsaconditionorwarrantywhosefulfilmentisexcusedbylawbyreasonofimpossibilityorotherwise.

（7）  Paragraph2ofSchedule1belowappliesinrelationtoacontractmadebefore22April1967or（intheapplicationofthisActtoNorthernIreland）28 July1967.

12. Impliedtermsabouttitle,etc.

（1）  Inacontractofsale,otherthanonetowhichsubsection（3）belowapplies,thereisanimpliedtermonthepartofthesellerthatinthecaseofasalehehasarighttosellthegoods,andinthecaseofanagreementtosellhewillhavesucharightatthetimewhenthepropertyistopass.

（2）  Inacontractofsale,otherthanonetowhichsubsection（3）belowapplies,thereisalsoanimpliedtermthat—

（a）    thegoodsarefree,andwillremainfreeuntilthetimewhenthepropertyistopass,fromanychargeorencumbrancenotdisclosedorknowntothebuyerbeforethecontractismade,and

（b）    thebuyerwillenjoyquietpossessionofthegoodsexceptsofarasitmaybedisturbedbytheownerorotherpersonentitledtothebenefitofanychargeorencumbrancesodisclosedorknown.

（3）  Thissubsectionappliestoacontractofsaleinthecaseofwhichthereappearsfromthecontractoristobeinferredfromitscircumstancesanintentionthatthesellershouldtransferonlysuchtitleasheorathirdpersonmayhave.

（4）  Inacontracttowhichsubsection（3）aboveappliesthereisanimpliedtermthatallchargesorencumbrancesknowntothesellerandnotknowntothebuyerhavebeendisclosedtothebuyerbeforethecontractismade.

（5）  Inacontracttowhichsubsection（3）aboveappliesthereisalsoanimpliedtermthatnoneofthefollowingwilldisturbthebuyer'squietpossessionofthegoods,namely—

（a）    theseller;

（b）    inacasewherethepartiestothecontractintendthatthesellershouldtransferonlysuchtitleasathirdpersonmayhave,thatperson;

（c）    anyoneclaimingthroughorunderthesellerorthatthirdpersonotherwisethanunderachargeorencumbrancedisclosedorknowntothebuyerbeforethecontractismade.

（5A）      AsregardsEnglandandWalesandNorthernIreland,thetermimpliedbysubsection

（1）aboveisaconditionandthetermsimpliedbysubsections

（2）,（4）and（5）abovearewarranties.

（6）  Paragraph3ofSchedule1belowappliesinrelationtoacontractmadebefore18May1973.

13. Salebydescription

（1）  Wherethereisacontractforthesaleofgoodsbydescription,thereisanimpliedtermthatthegoodswillcorrespondwiththedescription.

（1A）      AsregardsEnglandandWalesandNorthernIreland,thetermimpliedbysubsection

（1）aboveisacondition.

（2）  Ifthesaleisbysampleaswellasbydescriptionitisnotsufficientthatthebulkofthegoodscorrespondswiththesampleifthegoodsdonotalsocorrespondwiththedescription.

（3）  Asaleofgoodsisnotpreventedfrombeingasalebydescriptionbyreasononlythat,beingexposedforsaleorhire,theyareselectedbythebuyer.

（4）  Paragraph4ofSchedule1belowappliesinrelationtoacontractmadebefore18May1973.

14. Impliedtermsaboutqualityorfitness

（1）  Exceptasprovidedbythissectionandsection15belowandsubjecttoanyotherenactment,thereisnoimpliedtermaboutthequalityorfitnessforanyparti