LAW2523/TUTO/SESSION 1 2022/23

SALE OF GOODS: SHORT ESSAY QUESTIONS

INTRODUCTION

1. Briefly explain what is meant by a contract of sale of goods? [2 marks]

➢ Contract of sale of goods is ownership in the goods passes to the buyer at the time of
the sale.

2. What does “property in goods” refer to? [1 marks]

➢ Property in goods refer to ownership of the goods

3. Give one (1) difference between “contract of sale” and agreement to sell”.
[2 marks]

Contract sale of goods agreement to sell

If buyer refuses to pay, seller can sue the If buyer refuses to accept the goods when
buyer for the price of the goods. the times comes, seller may sue
unliquidated damages.

4. Give one (1) example of goods for the following types of goods:
i) Future goods [1 marks]
➢ Pre-order an iphone
ii) Specific goods [1 marks]
➢ salt
iii) Unascertained goods [1 marks]
➢ buy a car.

TERMS OF CONTRACT

1. Give one (1) difference between condition and warranty? [2 marks]

Condition Warranty
If the seller breaches the implied If the seller breaches the implied
condition, the buyer may warranty, the buyer may only claim
repudiate/terminate the contract or damage.
claim damages
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2. Briefly explain what is meant by “title” in Section 14 (a) of Sale of Goods Act 1951.
[1 marks]
➢ Title is ownership of goods

3. Give one (1) example of goods and two (2) description of such goods. [3 marks]

➢ Motorcycle
- Honda CBR
- White

4. Briefly explain what is meant by “caveat emptor”. [2 marks]

➢ The buyer must exercise reasonable care in making purchase.

➢ If the buyer fails to exercise due care, he will bear the consequences.

5. Briefly explain what “merchantable quality” means. [2 marks]

➢ The goods sold are fit for the particular use which whey were sold.
➢ If the goods are defective for that purpose or use, it is not maechantable.

6. Briefly explain what does “encumbrances” in the goods mean. [2 marks]

➢ Which the goods have ownership by co-owner.

LIMITATION TO TRANSFER OF PROPERTY/TITLE

1. Define the rule of “nemo dat quod non habet”. [2 marks]

➢ No one can give what he does not have.

➢ A seller who does not own the goods cannot transfer ownership of goods
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2. Situation 1:

Mira, Fatimah, and Syasya had decided to share the money to buy a laserjet printer to be
used for printing their works and assignments. They all agreed that Syasya would kept the
printer in her room. Later, Syasya was short on money to buy her new smart phone and she
decided to sell the printer to Kamal without the knowledge of Mira and Fatimah.

Based on the above situation, answer the following the question:

i) Did Kamal get the ownership to the printer? Why? [3 marks]

➢ Kamal gets the ownership to the printer. Because Syasya has the sole possession
of the goods by the permission of the co-owners at the same time Kamal in good
faith and did not have knowledge of seller lack of authority to sell.

3. Situation 2:

Yaya and her husband went to Seng Hong Electric to buy an LCD television. They spotted
one model of Sharp television which was the last stock remaining at the shop. They paid the
full price of the television and told the shop to deliver the television in a week because they
wanted to go on a vacation. Subsequently, Raju came to the shop and was interested to buy
the said television. Ah Seng who is the owner of shop decided to sell the said television to
Raju because that was the only stock remaining in the shop.

Based on the above situation, answer the following the question:

i) Did Raju get the ownership of the television? Why? [3 marks]

➢ Raju gets the ownership of the television. Because Ah Seng pass a good title to a
subsequent buyer acting in good faith, even the first transaction he has not
obtained a good title.