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Sale of Goods (Principles of Commercial Law)

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Institution
Lancaster University (LU)

Book
Principles of Commercial Law

Definitions Whether Property has Passed Rules for Passing of Property Unconditional contract Deliverable state “Unconditional appropriation” Sellers Duties Buyer’s Duties

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Uploaded on June 2, 2023
Number of pages 7
Written in 2022/2023
Type Other
Person Unknown

agency
sale of goods
bailments
carriage of goods by sea
bill of lading
methods of payment
bill of exchange
debt financing
debt security
secured creditors
unsecured creditors
arbitration
insolvency
hag

Sale of Goods (Act 1979)
(Unfair Contract Terms Act 1977 significant in all sales under this act – prevents exclusion
from a number of implied terms into a contract by SGA 1979)
(Business to business sales – Stevenson v Rogers)

Definitions
Sale/agreement (1)– seller transfers, agrees to transfer property in goods to buyer for
to sell – Section 2money consideration called the price.
(4) – contract = sale - transfer of property from seller to buyer
(5) – contract = agreement to sell - transfer takes place at a future
time
(6) agree2ment to sell becomes sale when time elapses or the
conditions are fulfilled subject to which property in goods is to be
transferred
Goods – section Personal chattels other than things in action or money
61 Emblements, industrial growing crops
Things attached to or forming part of land which are agreed to be
severed before sale or under contract of sale
Property - Section General property in goods, not merely special property
61 Does not equate to title (title is goods against the world, property is
good against seller)
Existing (1) Goods which form subject of contract of sale – existing goods
goods/future (owned or possessed by seller) or future goods (goods to be
goods – section 5 manufactured or acquired by him after the making of the
contract)
(3)- seller purports to effect present sale of future goods = agreement
to sell
Specific Goods – Goods identified and agreed on at the time contract of sale is made –
section 61 specific item
Unascertained Never become specific goods – haven’t been made at time of order =
goods unascertained foods
When goods are chosen and unconditionally appropriated to contract
= ascertained goods

Whether Property has Passed
The following may depend on whether property has passed on not (between buyer and
seller)
Risk – section 20 (1) Goods remain at seller’s risk until property in them is transferred
to buyer – then goods are at buyer’s risk whether delivery has
been made or not

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, (2) Where delivery is delayed through fault of either buyer or seller -
goods are at risk of party at fault (any loss which might not have
occurred but for fault)
Basis of Action for Property not passed – damages for breach
seller who has (1) Buyer wrongfully neglects or refuses to accept and pay for goods
not been paid – – damages for non-acceptance to seller
section 50 (2) Measure of damages = estimated loss directly and naturally
(damages for resulting in the ordinary course of events, from buyer’s breach of
non-acceptance) contract
(3) Available market for goods – measure of damages prima facie
ascertained by difference between contract price and the market
or current price at time goods ought to have been accepted
Property passed – action for price of goods (s.40(1))- even if property
not passed but price specified to be paid on certain day – action can
be for price
Remedies open Damages for non-delivery – seller wrongfully neglects or refuses to
to buyer on deliver goods
wrongful sale –
section 51

Rules for Passing of Property
When does (1) – when parties intend it to pass
property pass – (2) – to ascertain intention – look at terms of contract, conduct of
section 17 parties & circumstances of case
Ascertaining Rule 1 – (specific goods) property in goods passes to buyer when
intention – contract is made (goods must be in deliverable state)
section 18 – Rule 2 – (specific goods) – property passes when seller has finished
default rules doing the things to make goods in a deliverable state
where it is not Rule 3 – (specific goods) – must weigh/measure to ascertain price –
apparent from act must be done and notice must be given for property to pass
conduct/provision Rule 4 – (specific goods delivered on sale or return – if it isn’t
set by parties as returned within reasonable time, property passes) – buyer must
to their intention signify approval or acceptance, or retains goods without notice of
rejection
Rule 5 – unascertained/future goods – in deliverable state and
unconditionally appropriated to contract – (with assent from either
party – can be express or implied, may be given before or after
appropriation) – property passes

Unconditional contract
• The sale is not subject to a condition precedent

Deliverable state
- Section 61: Goods are… in such a state that the buyer would under the contract be
bound to take delivery of them

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