PART 1
The issue is whether John can return the goods or not.
Property is simply the ownership of the goods. The general rule in commercial law states
that risk passes with property1. Therefore, once property has passed, the seller has the right
to sue for the price.2 Ascertained goods can be defined as goods that have been individually
approved and recognised by the seller3. Unascertained goods can be defined as goods that
are not specifically identified when the contract was made4. Furthermore, Intention for
property to pass occurs when there is a contract for the sale of specific or ascertained
goods. Property passes when the parties within the contract intend for it to pass,5 moreover
for the purpose of certainty, to determine whether property as passed, an objective view of
the parties’ actions shall be considered by the court.6Lastly, The existence of an implied term
that states that when there is a contract on sales of goods by description it must correspond
with the description giving by the buyer to the seller.7This Implied term was further applied in
the case law of (Grant v Australian).8
The conduct and intent displayed by Elite Furnishing towards John, objectively shows that
the title of ownership has passed from the seller (Elite) to the buyer (John). Therefore,
applying the rule of law stated above (Sec 43), it is imperative for john to know that Elite Ltd
can sue for the price of goods delivered. However, the existence of an implied term on
corresponding description and the case law of (Grant) which states that “when there is a
contract on sales of good by description it must correspond” Therefore, it is essential for john
to know that a a buyer can reject the goods if there is breach of an implied term. In
1
SGA, Sec20.
2
SGA,Sec 49.
3
Supply of goods contracts: overview | Practical Law (westlaw.com)
4
Equitable liens | Practical Law (westlaw.com)
5
SGA, Sec 17 (1).
6
SGA, Sec 17 (2).
7
SGA, Sec 13(1).
8
Grant v Australian Knitting Mills Ltd [1936] AC 85 PC.
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