KOLEJ PROFESIONAL MARA BANDAR PENAWAR, JOHOR

DIPLOMA IN INTEGRATED LOGISTICS AND MANAGEMENT

LAW 2523:
BUSINESS LAW

ASSESSMENT TITLE:
CONTRACT OF SALE OF GOODS

LECTURER’S NAME:
SIR RAJA MOHAMAD SYAHMI BIN RAJA ISMAIL

PREPARED BY:
BATRISYIA QISTINA BINTI MOHD YAZID

CLASS:
DLM 4B
 QUESTION 1(A)

ISSUE

Whether Alfian can claim his right for the motorcycle.

LAW

 The issue concerned with the implied condition as to title.

 Section 14(a) SOGA 1957 states that the seller must ‘have right to sell the

goods”

 In other words, the seller must have ownership to the goods that he sells.

 According to implied condition, only the true owner of the goods may pass a

valid ownership to a buyer.

 Therefore, Alfian already know the true owner of the Yamaha RXZ motorcycle

belonged to Raju’s cousin.

 In the case of Rowland v Divall (1923), Rajus had breached the condition that

the seller must have title to the goods.

APPLICATION

 Based on the law above, Alfian has no right to claim for the motorcycle.

 The reason being, Alfian asked Raju to transfer the title of the motorcycle to

his name. But Raju refuse despite Alfian already completed the payment

 However, Alfian later find out that the motorcycle was a stolen property and its

rightful owner is Raju’s cousin.

CONCLUSION

In conclusion, Alfian has no right to claim for the motorcycle.

 QUESTION 1(B)

ISSUE

Whether Megah Wangsa Furniture Sdn Bhd can claim the balance of the payment.

LAW

 The issue concerned with the breached by buyer to pay for the goods.

 Section 50 SOGA 1957 states that if the buyer becomes insolvent, the seller

who has delivered the goods by courier has the right to stop the goods while

they are still in transit.

 According to implied condition, the goods are considered to be in transit when

they are delivered to a carrier or other bailee for the purpose of transmission

to the buyer.

 Therefore, Megah Wangsa Furniture Sdn Bhd can stop the goods while they

are still in transit.

APPLICATION

 Based on the law above, Megah Wangsa Furniture Sdn Bhd has the right to

stop the goods while there are still in transit.

 The reason being, Dato Aliff has been declared by the High Court as a

bankrupt person. Megah Wangsa Furniture Sdn Bhd have already ordered

goods from the supplier.

 Therefore, Megah Wangsa Furniture Sdn Bhd can call the carrier or other

bailee for the purpose of transmission to the buyer and stop the goods from

being send to Dato Aliff.

CONCLUSION

In conclusion, Megah Wangsa Furniture has the right to stop the 200 sets of

“Raymour and Flanigan” king size bed while they are still in transit.