Sale Of Goods Act 1930. Section 4 – Sale and Agreement to Sale. The contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part owner and another.
1) Sale of some stacks of oak on the sellers ground, upon the terms that they might remain there for four months and the buyer should pay within 12 weeks of the contract. The seller on the expiration of 12 weeks demanded the price which the buyer failed to pay. Later the buyer asked for further time which the seller refused to give, and said that as the buyer had not paid he should not have the stacks. The buyer later tendered the price, but the seller refused to accept it and subsequently resold the stacks. The Buyer was held entitled to recover in an action of trover. ( Martin Dale V/s. Smith 1841)
2) Sale of goods to be shipped and bill of lading to be dated December – January. Goods were shipped on 30th January but the bill of lading was dated 2nd February the buyer was held entitled to reject.
1. Conditions and warranties 2. Express Conditions
3. Express Warranties 4. Representations
5. Implied conditions and warranties 6. Puffs
A mere puff is a vague and extravagant statement so preposterous in its nature that nobody could believe that anyone was misled by it. The extent to which a statement may be so categorised depends on the degree or obviousness of its untruth. The circumstances of its making and in particular on the expertise and knowledge attributable to the person whom it is made.
1. Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred.
2. For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and circumstances of the case.
3. Unless a different intention appears, the roles contained in section 20 to 24 are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.
This section may be illustrated by the following examples:
1. Sale on the 4th January of a haystack on the seller’s land at the price of £145 to the paid on the 4th February, the hay to be allowed to remain on the seller’s land until the 1st May: no hay to be cut until the price was paid. The property in the haystack passed on the making of the contract and on the stack being destroyed by fire, the buyer must bear the loss Tarling Vs. Baxter (1827)
2. Sale of a specified number of bushels of oats, the contents of a bin in a warehouse. The seller gives a delivery order to the buyer, addressed to the warehouseman, authorising delivery of the oats tio the buyer, and asking the warehouseman to weigh them,. The warehouseman accepts the order and enters it in his books. The property has passed to the buyer, as the weighing was not necessary to identify the oats or to ascertain the price, but was merely for the satisfaction of the buyer. Swanwik Vs. Sothern (1839)
This section may be illustrated by the following example: Sale of the whole contents of a cistern of oil, the oil to be put into casks by the seller and then taken away by the buyer. Some of the casks are filled in the presence of the buyer, buy before any are removed, or the remainder are filled, filled, fire destroys the whole of the oil. The buyer must bear the loss of the oil which had been put into the casks, the seller that of the remainder .Rugg Vs. Minett (1089)
1. Sale of a stack of bark at a certain price per ton, the bark to be weighed by the seller’s and buyer’s agents. Part was weighed and taken away, but before anything more was done a flood carried away the remainder. The loss of this fell on the seller. Simmons Vs Swift (1826)
2. Sale of 289 specified bales of goatskin, containing 5 dozen in each bale, at a certain price per dozen. By the usage of the trade, it was the sellers duty to see whether the bales contain the number specified in the contract. Before the seller had done this the bales were destroyed by fire. The loss fell on the seller. Zagury vs Furnell(1809)
1.Goods delivered on sale or return are pledged by the deliveree. He thereby becomes the buyer of the goods, and the original owner cannot recover the goods from the pledgee.
2. Goods delivered on sale or return to the defendant are delivered by him on similar terms to another. The latter in turn hands them to a fourth person, who loses them. The defendant, being unable to return the goods, must pay for them as if he had actually agreed to become the buyer.
3. Sale of a stack of hay. The buyer asked the permission of the seller to cut and remove part of the stack, which was granted. The clear intention of the parties being to separate the part delivered of the whole.