NUR ELYANE NATAHSA BINTI SUZAHAKASIMI

2022942919
BA2322A

QUESTION ONE
Emma agreed to purchase 200 packets of organic flour from Michael. Emma paid to Michael
the price of 100 packets of the flour and took delivery of them. They agreed that the
remaining 100 packets would be delivered after Emma makes payment in 2 weeks. Emma
failed to tender her payment and Michael decided not to deliver the remaining 100 packets.
Advise Michael on whether he could do so.
ANSWER: ILAC
The issue whether Michael can deliver or not deliver the remaining 100 packets of organic
flour to Emma.
Unpaid seller is a person that have sold his goods for a price, but the money has yet been paid
to him. According to Section 45 of SOGA, unpaid seller is to whom the whole price has not
been paid or tendered and where a bill of exchange or other negotiable instruments has been
accepted by him and a condition on which it was received has not been fulfilled by reason of
dishonour of the instrument or otherwise. There are four (4) rights of unpaid seller against the
good which are right of lien, right to stop goods in transit, right of resale and right to withhold
delivery. Section 46(1)(a), 47 to 49 of SOGA stated, the right of lien means lawfully right to
retain the goods possession until the full price is received. Unpaid seller can exercise his right
of lien in following cases where the goods have been sold on the cash basis, where the goods
have been sold on credit basis and the term of credit has expired, and lastly, where the buyer
has become insolent (bankrupt or unable to pay) even if the period of credit has not been
expired.
Based on the issue given, Emma has an agreement with Michael in which she agreed to
purchased 200 packets of organic flour from Michael and have paid and received half of the
goods from the agreement while the other half will be received and pay 2 weeks later. Then
later, Emma failed to make payment for the other half of the goods within the time that they
have agreed. According of the right of lien in Section 46(1)(a), 47 to 49 of SOGA, Michael
have right to retain the half of the organic flour that have yet been paid by Emma until the
full price is received. The reason is the 100 packets of organic flour have been sold on cash
basis and the other 100 packets will be pay and receive later.
To sum up all the point given, Michael can decide to not deliver the other 100 packets of
organic flour until Emma make the payment.
NUR ELYANE NATAHSA BINTI SUZAHAKASIMI
2022942919
BA2322A

QUESTION TWO
Jason bought 100 units of light bulbs to decorate his restaurant. The seller, Mr. DAY informed
him that he cannot test the light bulbs before purchasing them as the light bulbs are packed in
boxes which can only be opened after purchase. He only able to read the details and
description written on the boxes. When Jason installed the light bulbs in his restaurant, he
discovered that 30 units were damaged. Jason wants to bring an action against Mr. DAY.
Advise Jason
ANSWER: ILAC
The issue whether Jason can take an action against Mr. Day.
There are terms of the contract of SOGA which classified into condition and warranty. It
depends very much on the construction of the contract in which made between parties.
Section 12(2) stated that a condition is a stipulation essential to the main purpose of the
contract. Where the seller is in breach of condition, the buyer’s right is to terminate the
contract, to reject the goods and to claim for damages. While Section 12(3) stated a warranty
is a stipulation collateral to the main purpose of the contract. The breach of which gives rise
to a claim for damages only but not a right to reject the goods and right to treat the contracts
repudiated. Conditions and warranties may be express or implied. Express condition and
warranties are those which have been expressly agreed upon by the parties at the time of
contract of sale. Implied condition and warranties are those which the law incorporates into
the contract unless the parties stipulate to the contrary. There are five (5) condition in implied
conditions which are as to tittle, as to description, as to quality or fitness, as to
merchantability and as to sample. According to Section 15 condition as to description, in sale
by description there is an implied condition that the goods shall correspond with the
description. If the description of the article tendered is different, then the buyer may not buy
the goods. The example of this condition is the case of Varley v Whipp [1900]. Sale of good
by description must apply to all cases where the purchaser has not seen the goods, but is
relying on the description alone. Section 16(1)(b) condition as to merchantability also stated
that goods that are bought by description from seller who deals in goods of that description
there is an implied condition that the goods are of merchantable quality. This means goods
should be such that they are commercially saleable, as per the description by which they are
known in the market at their full value. For example, is the case of David Jones V. Willis
(1934).
Based on the issues arise, Jason bought 100 light bulbs from Mr. Day for his restaurant.
While purchasing the bulbs, Mr. Day informed him that he can’t test the bulbs whether it can
be used or not as the items comes in a box and only can be opened after purchased. Jason can
only read the description on the boxes before agreed to buy. After he installed the bulbs in his
restaurant, 30 light bulbs have been damaged. Based on Section 15 condition as to description
and Section 16(1)(b) condition as to merchantability, the light bulb that Jason purchased shall
correspond with the description on the boxes and light bulbs are meant to be light up. And the
light bulbs are of merchantable quality and the light bulbs that Jason purchased are of not in
merchantable quality.
To summary all the point, the light bulbs were bought by description, there had been a breach
of implied condition and Jason can take an action against Mr. Day.
NUR ELYANE NATAHSA BINTI SUZAHAKASIMI
2022942919
BA2322A