Summary
Summary Topic 2a - Types of contract
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A free preview of types of contract encountered in commercial law. Notes were made based on Atiyah and Adam' Sale Of Goods.
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A contract of sale of goods- There must be a contract
S. 62(2) – The normal law of contract applies.
There must be consensus ad idem and intention to create legal relation etc.
Pfizer Corpn v Minister of Health [1965] AC 512 – a patient obtained drugs from
a hospital is not a contract of sale of goods.
Patient has a statutory right to receive the drugs and the hospital has a
statutory obligation to supply it.
- The thing has to be ‘goods’
S. 61 – all personal chattels except things in action, money (Moss v Hancock
[1899] 2 QB 111) and interest in land.
- The consideration in exchange must be money.
A sale of coin – the coin can be goods as it does not possess the usual negotiable
qualities of money.
- S. 2 SOGA 1979
A contract of sale of goods is a contract by which the seller transfers or agrees to
transfer the property in goods to the buyer for a money consideration.
S. 2(4) – where the property in the goods is transferred the contract is called a
sale.
S. 2(5) – where the property in the goods is to be transferred at a future
time/subject to conditions the contract is called an agreement to sell.
- Only a contract of sale of goods is covered by the SOGA 1979.
Other types of contract are excluded from the application of the Act.
Barter or exchange
Gif
Bailment
Hire-purchase
Loan on the security of goods
Supply of services
Agency
Licences of intellectual property
A contract may sometimes be a contract of sale and a contract of different
characters.
Lockett v A & M Charles Ltd [1938] 4 All ER 170 – provision of meal
Cammell Laird & Co Ltd v Manganese Bronze & Brass Co Ltd [1934] AC 402 –
the construction of machinery.
Note: the law relating to sale of goods and supply of services is different.
o Sale of goods: liability is strict – liable even if there is no negligence.
o Supply of services: only liable for negligence.
o Note the provision of computer sofware – St Albans City and DC v
International Computers Ltd [1996] EWCA Civ 1296.
Sale and exchange
o The law is unclear where goods are exchanged for goods plus money
on the other.
o Aldridge v Johnson (1857) 7 E & B 885 – exchange of 52 bullocks
with 100 quarters of barley and the difference in value to be made
up in money is held to be a contract of sale.
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