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