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Sale of Goods

Sale Of Goods:

The Sale of Goods Act 1979 is an Act of the United Kingdom which regulates contracts in which goods are sold and bought. The Sale of Goods Act performs several functions.

Buyer is a person that who wants to buy something from seller and seller is a person that sells out something that a buyer wants. To purely define Sales of Goods Act, it is a contracts in which goods are sold and bought, it means whereby the seller transfer the property in the goods to the Buyer for a consideration called price.

The Sale of Goods Act lays down a small number of compulsory legal rules concerned with an array of presumptions and implied terms, which aim to reflect the commercial expectations in the most commonly agreed sales contracts. In the absence of contrary agreement these terms will govern a contract within the Act’s remit.

Now that the law has imposed more responsibility on the seller which will be able to protect all buyers, because, nowadays, the modern law has proved that buyers has become more and more driven to rely on the honesty, skill and judgment of the seller. In many situations, the rules contained in the act only apply where the parties have failed to make express arrangements as to their obligations.

Definition sale of goods

A contract of sale is a legal contract an exchange of goods, services or property to be exchanged from seller to buyer for an agreed upon value in money paid or the promise to pay same. It is a specific type of legal contract.

Meaning of Goods

In Section 61, good includes all personal chattels but excludes all the services or chooses in action or money. Products of the soil are generally sold with a view to severance and though they may sometimes be of the nature of land for the purpose of the Law of Property (Miscellaneous Provisions) Act 1989, they are usually goods within the meaning of the Act of 1979. Nor would crops sold with the land on which they are growing because they are not in such a case to be ‘severed before sale or under the contract of sale’ as section 61 requires.

Goods may be:

Existing goods: goods actually in existence when the contract is made. They may be either specific or unascertained in the sense that they have yet to be appropriated to the contract (section 5(1)).

Future goods, goods yet to be acquired or manufactured or grown by the seller (section 5(1)) as in Sainsbury V Street. Where the seller agreed to dell to the buyers a crop of some 275 tons of barley to be grown by him on his farm.

Specific goods, goods identified and agreed upon at the time the contract of sale is made (section 61(1)). The sale of a raincoat at a market stall.

Unascertained goods: as where A agrees to sell to B 200 bags of flour from a stock of 2000 lying in A’s warehouse. The main problem in examination terms arises in question which is concerned with when ownership in such goods passes from seller to buyer. This problem will be considered below.

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