The sale of goods is an aspect of business law that's guided by the sale of goods act. The Sale of Goods Act of 1893 is the regulation that protects consumers. The aim of this act is that it gives room for goods to be as described, of applicable requirements, and fit for purpose for their critical use. All goods that are offered need to be in shape in accordance with the pattern proven in brochures, shops or showrooms. Section 1 of the Sale of Goods Act states that a contract of sale of goods is a settlement whereby the vendor transfers or has the same opinion to transfer the property in goods to the consumer for a monetary consideration, known as the price.
It is not only expected to be of acceptable quality and ideal first-rate if the consumer observes any deformity or difficulty with the product before he/she makes a purchase. So, if the purchaser turned to examine the products but ignored the possibility of looking for any flaws and that they were of inadequate quality, the lack of value would have been obvious on a practical examination of the product(s), and the purchaser would no longer be able to contend that the goods were of inadequate quality.
The contract of sale in the sale of goods act encompass a sale and an agreement to sell. A contract of sale becomes an actual sale when possession and ownership of goods are moved from the seller to the buyer. An agreement to sell is used when the transfer of property is scheduled to take place at a later date or is subject to various conditions that must be met.Sale of goods deals with the accession and transfer of property. The introductory law of transfer of property centres on ownership and possession. A person must first acquire, own, and, in most cases, retain a property before he can legitimately vend, convey, or transfer power or title to another person. This principle of law is captured in the Latinic sententia of nemo dat quod non habet, meaning that no person can give what he doesn’t have. This principle is grounded in the sense that a person who doesn't own property can not confer it on another except with the true proprietor’s authority under an agency relationship; where he's dealing under statutory powers; or in cases where the doctrine of estoppel prevents the true proprietor from denying the authority of the dealer to vend.
A contract for the sale of goods is said to be a contract and, by section 2 of the Sale of Goods Act, it is regulated originally by the general law of contract and by the law of acquistion and transfer of property. In general terms, for a contract to be valid, there must be the existence of an offer, acceptance, consideration, and intention to produce legal relations. There are other fundamental rudiments to a valid contract of sale. The price which is the consideration for a contract of sale of goods must be expressed in monetary terms. The Sale of Goods Act provides that the price in a contract of trade may be fixed by the contract, or in a manner agreed by the parties, or in the manner in which the parties deal with each other. Where the price isn't determined in accordance with the foregoing, the buyer must pay an objective price.
Another important aspect of the sale of goods contract is the sold goods, also known as the property. There ought to be some goods or pastime in goods to be transferred. By section 16 of the sale of goods act, when the contract for the sale of unascertained goods occurs, no property in the goods is transferred to the customer until and till the items are ascertained. Furthermore, when the contract for the sale of precise or ascertained goods takes place, the property in them is transferred to the customer at such time as the events stipulated in the contract intend for it to be transferred. Section 17 focuses on the motive of ascertaining the intention of the parties. Regard must be paid to the phrases of the contract, the behavior of the parties, and the occasions of the transaction. Similarly, the vendor has to be the proprietor of the property or a lawful or approved agent of the proprietor of the property.
The involvement of two parties,property transfer, goods, price, a sale and an agreement to sell,no formalities to be observed, time, consent,capacity,offer and acceptance are the characteristics of the contract of sale of goods . Despite this, the sale of goods is said to be distinct from other areas of law such as hire purchase, barter trade, bailment, and contract for work and materials. Those differences are explained below.
1. Sale of Goods and Exchange: According to Section 1(1) of the Sale of Goods Act, the consideration for a sale of goods contract is money, whereas a transaction in which goods are traded and exchanged for other goods is known as a contract of exchange or trade by barter. That is, money is not used as consideration just for goods only. Although money as a monetary consideration in the sale of goods is now accepted either in part or full in the contract.
2.Sale of Goods and Bailment
A bailment is a type of transaction whereby goods are delivered by one party called the bailor to another party called the bailee on certain terms and conditions which necessitate the bailee to keep the goods and redeliver them to the bailee in accordance with his instructions. That is, the bailor transfers temporary possession of his goods to the bailee. The parties in a bailment are called bailor and baile, while the parties in the sale of goods are called buyer and seller. However, in bailment, the bailor only transfers and parts with the possession of goods for a temporary period of time, while in the sale of goods, the seller transfers the ownership and possession of goods.
3 Sale of Goods and Hire Purchase: A sale of goods involves a complete commitment by the seller and buyer that there will be a transfer of ownership as regards the title of the goods from one to another after payment has been made; whereas a hire purchase agreement involves the owner giving the hirer possession of goods or property with only the option to buy after the hirer has successfully paid all the specified amount. sale of goods, namely seller and buyer, there are three parties in a hire purchase agreement, namely owner, hirer, and guarantor. The sale of goods is preserved by the Sale of Goods Act while the hire purchase agreement is maintained by the Hire Purchase Act.
3 Sale of Goods and Hire Purchase: A sale of goods involves a complete commitment by the seller and buyer that there will be a transfer of ownership as regards the title of the goods from one to another after payment has been made; whereas a hire purchase agreement involves the owner giving the hirer possession of goods or property with only the option to buy after the hirer has successfully paid all the specified amount. sale of goods, namely seller and buyer, there are three parties in a hire purchase agreement, namely owner, hirer, and guarantor. The sale of goods is preserved by the Sale of Goods Act while the hire purchase agreement is maintained by the Hire Purchase Act.
4. Contract for Work and Materials and Sale of Goods
A contract for the performance of work or services to which the supply of materials or some other goods is incidental. For instance, when a fashion designer gets an order to make a particular dress or when a sculptor has an order to create the sculptural piece of a person, The work is completed after the dress or sculptural piece is created. This is seen as a contract for the purchase of the skills, work, and materials of the craftsman. To determine whether it is a contract for the sale of goods or a contract for work or materials, the essential object of the agreement is the provision of goods or the exercise of skill and experience. To further differentiate these two concepts, a sale of goods occurs when a buyer works in a fashion designer store and selects one of the available outfits and payment is made. Whereas, the contract for work and materials is when a buyer works in a fashion store and requests that the fashion designer get a fabric to sew the design of the outfit he or she selects, and the fashion designer ensures the outfit is ready by using materials, skill, experience, labour, and time.
In conclusion, to fully understand the contract of sale of goods, make sure you read through the sale of goods act of 1893.
In conclusion, to fully understand the contract of sale of goods, make sure you read through the sale of goods act of 1893.
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