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Unit 21 Aspects of Contract and Business Law - P6
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Unit 21 Aspects of Contract and Business Law - P6
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P6 Kojar AhmedSale of Goods Act 1979
The Sale of Goods Act is “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, called the price”
This act covers all physical objects but does not cover services. It also involves things that have a
copyright or trademark, such as computer software. The main implied terms that protect the
consumer in this act are found in section 12-20.
Section 12 - The Title:
Section 12 Reservation of title is a contractual term that states a business has the right to reserve
their goods until the price from them has been paid in full. This is an express term that is used in
many businesses such as retailers. This essentially means the consumer has no title over the goods
until they have paid the full price form them, giving the seller the right to withhold any goods. This
also applies to services such as dry cleaners where they have the right to withhold your goods until
they have received full payment. This can also apply if for example a customer has had their car
washed but has refused to pay for the service, the business would have the right to withhold the
vehicle until the full price of the service has been paid.
Section 13 – Description:
Section 13 states that if a customer is given goods which are unfit for purpose or not as described
then they have the right to reject them and demand for their money back. However, the consumer
must demand their money back and reject the goods within a reasonable time, usually 30 days if a
product has been bought in a store or a day or two for delivered goods.
Section 14 – Quality and Suitability:
When suppliers make deals with businesses to deliver a certain amount of goods at a specified time,
they should ensure that they are always providing the agreed upon quantity and quality of goods. If
not, then the business has the right to legally reject these goods as they breach the terms of the
contract. This has been specified by the Sale of Goods Act of 1979.
Merchantable quality is in subsection 2 of section 14 and simply means that a product is fit for
purpose in which they have been advertised, this means that if a product arrives and is faulty then
the consumer has the right to demand their money back.
Fitness for purpose is in subsection 3 of section 14 and simply states a product must be fit for
purpose when they have been advertised to a buyer. The seller has the right to detail the purpose of
the goods either in writing or verbally and the product must then meet this description to prevent
false advertising.
Section 15 – Sale by Sample:
Section 15 covers situations where the buyer has seen a sample of the goods and agrees to make a
purchase based upon that sample. In this situation, the main purchase must correspond with the
sample and the buyer must be given a reasonable opportunity to check before he accepts the goods
and the contract is complete. This applies to business to business contracts as well as to consumer
contracts.
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