Section Introduction Description Other information Judicial Decisions

2(1)































Definition































[Link]
[Link] or agrees to transfer
3.(property in) goods



[Link]
[Link] money consideration called the price

59(1) (Property): general property in goods and not
merely a special property

Lease does not come under SOG




















59(1) Person who sells or agrees to sell

59(1) All movables except money.
- Growing crops and things attached to or forming part of
land which agreed to be severed before sale or under the
contract of sale.
59(1) Person who buys or agrees to buy goods






6(1) Subject Matter of Contract

Existing Goods Future Goods
Owned or processed by the seller Goods to be manufactured or
At the time of the contract of sale acquired by the seller after
making the contract of sale

Identified unidentified Manufactured Acquired



Insurance, stocks ,intangible assets are not considered as goods under SOG

Price :
9(1) price in a contract of sale may be fixed
- by the contract
- be left to be fixed in manner thereby agreed
- be determined by the course of dealing between the parties.

9(2)Otherwise buyer must pay a reasonable price
















Lee v Griffin
Fixing a tooth was considered
falling under SOG

St. Albans city & district council v
International Computer Ltd
Computer software not falling
within the definition of goods in
SOG






Foley v Classique coaches Ltd
Sold petrol for price agreed upon























2(2)





2(3)


























A contract of
sale may be
[Link] or
[Link].



























What is not mentioned in 2(1) but mentioned in
SOG







under a contract of sale

1. Property in the goods is transferred from the seller
to the buyer the contract is called " a sale ";
2. Where the transfer of the property in the goods is
to take place at a future time, or subject to some
condition thereafter to be fulfilled, the contract is
called " an agreement to sell







10(1) When price is to be fixed by the valuation of a third party
- such third party cannot or does not make such valuation, the
agreement is avoided

- if the goods or any part have been delivered to and
appropriated by the buyer he must pay a reasonable price


10(2)When a third party is prevented from making the valuation
by the fault of the seller or buyer, the party not in fault may
maintain an action for damages against the party in fault.












2(4) agreement to sell becomes a sale when the time elapses or
the conditions are fulfilled.

6(2) May be a contract for the sale of goods, the acquisition of
which by the seller depends upon a contingency which may or
may not happen

6(3) When a seller tries a present sale of future goods, the
contract operates as an agreement to sell the goods.






Cambell v Edwards
If an expert valuer has undertaken
his task honestly and in good faith,
the outcome cannot be challenged
simply because he has made a
mistake or one side does not like
the outcome.
























Nilabdeen v Farook

plaintiff agreed "to give" his lorry to
the defendant for a sum 57500..
defendant paid Rs.17,500/- on the
date of the agreement and received
possession of the lorry. Property
in the lorry remained with
the seller and it was an
agreement to sell





3


















4













Capacity to
buy and sell.





















How Contract
of sale is
made
















Capacity to buy and sell, transfer and acquire
property regulated by the general law

















Formalities of the contract
1. Writing,
2. By word of mouth,
3. Partly in writing and partly by word of mouth,
4. May be implied from the conduct of the
parties









S.3 exceptions
To minor or persons of mental incapacity or drunkenness
- necessaries are sold and delivered
- pay a reasonable price

Necessaries: goods suitable to condition in life and to his actual
requirements at the time of the sale and delivery.

58(1) rules in insolvency relating to contracts of sale shall
continue to apply notwithstanding anything in SOG










Contracts other than sales of goods contracts
Exchange of goods does not come under SOGs
However partial exchange comes under SOG











AG v Costa
Minor, entered into a bond to pay
the course fee if she does not work
for the govt. after completing the
course.

Bond was for the benefit of the
minor the contract was binding on
the minor;


Nash v Inman

Nash entered into a contract with
Inman a minor to supply 11 waist
coats.

Held, the waist coats were not
considered as necessities hence
contract was not valid.

Christy V Mohamad Bai

Getting a loan was considered a
useful to him.




Aldrige v Johanson

A farmer swapped some bullocks
for barley & cash. Held that this was
a contract of sale.

Dawson v Duckfield

Two lorries were paid for, partly by
cash and partly by the part
exchange of two old lorries. held
that this was nonetheless a
contract of sale.






5






















7









No contract to
be in force
unless in
writing and
signed.






















Situations
when
Due to
common
mistake
SOG contract
is void









contract for the sale of any goods shall not be enforceable
unless
1. buyer accepted part of the goods sold and
actually receive the same.
2. pay the price or a part
3. note or memorandum in writing of the contract
made and signed by the party to be charged or his
agent













When the good is perished
Contract for sale of Specific Goods

Without the knowledge of the Seller

Goods have perished

At the time when the contract is made

Contract is void




In a gift as there is no consideration, it does not fall under
SOG


In prawning the property does not pass. Therefore not a
Sales contract

In higher purchase /lease at the end of the payment
period the sale completes

Contracts of Work & Material .











Perished means merchantable quality is lost. Eg: Sugar
becomes wet

When part of the good perish or stolen is considered as
entirety is perished only if good is not divisible.






Esso Petroleum V Commissioner of
customs & exercise
When Petrol is brought a coin was
given as an inducement and was
not considered a part of the sales
contract









Marshel V Taper
When a cloth is chosen and after
wards a coat is ordered to be
tailored its a SOG

However if cloth is taken to a
tailoring shop and a coat is tailored
then its does not come under SOG

Robinson V Graves

Painting a picture does not come
under SOG


Barrow Lane v Phillips

Contracted to sell 700 peanut bags
but only 570 was in the ware house.
Hence contract was void.













8











9.1






9.2
Goods
perished
before sale,
but after
agreement
to sell






Price
Agreement to sell specific goods

Without any fault of buyer & seller

Goods perishes

Before the risk passes to the buyer

Agreement is avoided



[Link] by the contract
[Link] in a manner agreed
[Link] by the course of dealings between the
parties



If no price is agreed buyer must pay a reasonable
price




(before sale of the goods but after agreement to sell the
goods perishes)

However due to death of the seller the contract does not
get frustrated


















Taylor V Caldwell

There was a concert to be hell
however the hall was burnt due to
fire. Contract was frustrated due to
impossibility of getting the hall.