Question 4 (Pang Weng Wai)

Jazz agreed to buy Sam’s 999cc BMW Monster motorbike for RM150,000, payable in cash. Sam
agreed to Jazz’s request for a set of new battery and seat to be fixed before delivery. At the
workshop whilst the seat was about to be replaced, the motorcycle was damaged in an accident.
Advise Sam as to who should be responsible for the cost of repair to the motorcycle under
the Sale of Goods Act 1957. (12 marks)

The issues here are whether Sam or Jazz should be responsible for the cost of repair to the
motorcycle under the Sale of Goods Act 1957.

Specific goods are the goods that are identified and agreed upon at the time the contract of sale is
made. It is stated in Section 2 of SOGA 1957. In section 21, when there is a contract for the sale
of specific goods and the seller is bound to do something to the goods for the purpose of putting
the goods into a deliverable state, the property does not pass until such thing is done and the
buyer has notice of it. Deliverable state means that the goods are in physical state so that the
buyer is able to take delivery of the goods. ‘Until such thing is done’ means that the seller has to
do something to the goods in order to make the goods ‘deliverable'. The property will not pass
until he has made the goods ‘deliverable’ and the buyer knows about it. In Section 26, unless
otherwise agreed, the goods remain at the seller’s risk until the property is transferred to the
buyer, the goods will only be at the buyer’s risk when ownership is transferred to them even if
delivery has not been made. In the case Underwood Ltd v Burgh Castle Brick and Cement
Syndicate, where the buyer agreed to buy an engine from the seller and the engine is fixed on the
floor. Later, the engine was partially broken by accident when it was being loaded onto the
railway track. In the end, the court held that the title of good had not passed to the buyer at the
time of the accident, it was still at seller’s risk because the engine was still not in a deliverable
state.

In this case, there is a buyer, Jazz and seller, Sam who agreed to transfer his 999cc BMW
Monster motorbike for RM150,000 to Jazz. However, the motorcycle was damaged in an
accident while the seat was about to be replaced. The motorcycle was not in deliverable state at
that moment as Sam did not fulfill Jazz’ request yet, which is replacing the seat and batteries.
Thus, the property does not pass to Jazz until the condition is fulfilled and Jazz notices about it.
According to section 26, the good is at the seller’s risk until the property is transferred to the
buyer. Therefore, Jazz is not responsible for the cost of repairing the motorcycle since the
ownership had not passed to him yet. Instead, Sam has to be responsible for this accident and pay
for the cost of repairing the motorcycle because the ownership remains on him.

Conclusion : In short, the seller, Sam should be responsible for the cost of repair to the
motorcycle under the Sale of Goods Act 1957.