BBBL2023 Commercial Law Tutorial 6 & 7

TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

BBBL2023 COMMERCIAL LAW

Sale of Goods

TUTORIAL 6 & 7 WEEK 7 & 8

1. What is a ‘contract of sale of goods’? Briefly explain the requirements of a contract of sale
of goods under the Sale of Goods Act 1957 (‘SOGA’)?

2. Explain whether the following transactions fall under SOGA 1957:

(a) Ahmad agrees to exchange his pen for Thomas’s watch.

(b) Jenny agrees to sell her house to George for RM200,000.

(c) Frank agrees to buy shares in ABC Sdn. Bhd. from Sam for RM10,000.

(d) Tan wants to buy a TV set from Fella Design for RM2,000 to be paid over a twelve
(12) months period by equal instalments.

(e) Wong contracts to buy 5 lots of timber from Jane for the sum of RM500 per lot.

3. Advise the buyers in the following questions on whether the sellers have breached any
implied terms under SOGA 1957.

(a) Naomi is a professional model and needs to use a make-up which is suitable for her
sensitive skin. She went to a cosmetics shop owned by Jade and informed Jade that
she wanted to buy make-up which was suitable for her sensitive skin. Jade
recommended a certain brand of make-up to Naomi, saying that it was suitable for
her sensitive skin. Naomi bought the make-up and started using it. A few days later,
Naomi’s skin broke out in rashes, and she sought medical treatment. She was
informed that the make-up that she bought from Jade was not suitable for her skin.
Advise Naomi.

(b) Sharon wanted to buy a blender which can also be used as a juicer. She went to
HipHop Electrical Store and after looking through many brands of blender, Sharon
decided to choose “3X” brand because it was stated on the box that it could also be
used as a juicer. She paid for it and went home. Upon reaching home Sharon
excitedly took out the blender to grind onions but the blender was not working. After
much effort, a frustrated Sharon decided to make a nice cool fruit juice. However,
there were no components in the blender suitable for making juice. Disappointed,
Sharon went back to the store to return the blender. The supervisor refused to refund
her claiming that Sharon must have used the blender wrongly and further stating that
the description on the box about the blender can also be used as a juice extractor was
wrong. Advise Sharon.

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BBBL2023 Commercial Law Tutorial 6 & 7

4. In the following situations, explain when the property will pass to the buyer, with reference
to the relevant sections in the Sale of Goods Act 1957 (‘SOGA’):

(a) Esther agrees to buy Tim’s Blue Myvi for RM30,000 on the condition that Tim gives
the car four new tyres.

(b) John agrees to buy Lim’s motorbike for RM10,000 and Lim agrees with John for
payment to be made in the following months.

5. Identify which party is liable to bear the risk on the goods under SOGA 1957 in these sales:

(a) Mark ordered 10 gunny sacks of paddy from Helena’s granary for RM3.20 per
kilogram (kg). However, all the paddy in her granary is yet to be packed in gunny
sacks. As such, the total price of each gunny sack of paddy is unknown until the
paddy in her granary is packed and weighed by Helena. Nevertheless, Mark insisted
on his order and Helena agreed to it. Unfortunately, Helena’s paddy mill near her
granary exploded and all the paddy and gunny sacks were burnt before she could
finish packing and weighing them. Mark refused to pay Helena and claimed that
Helena should bear all the losses for the paddy. Advise Helena. (May 2021 Exam)

(b) Aswin, a renovation architect, bought 30 paintings for interior decoration after
spending hours selecting the suitable paintings for matching colours. Each painting
was valued at RM50,000. All the paintings cost RM1.5 million. First payment of
RM150,000 was paid by Aswin before he left the painting boutique. Payment was
agreed to be made in nine instalments of RM150,000. The paintings were delivered
to his renovation venue. The following day a crane crashed over the building and all
the paintings were crushed under the crane.

6. Nemo dat quod non habet rule provides that ‘no one can get a better title than what he
already has’. Explain this rule in accordance with SOGA 1957 and state the exceptions to
this rule.

7. Firdaus bought two laptops, Asus VivoBook 14 from Thundermatch for RM2,500 each.
He requested the salesperson, Anuar to upgrade the Random-Access Memory (RAM) of
both laptops from four gigabytes (4GB) to eight gigabytes (8GB) with DDR4 SDRAM
with additional cost of RM99 each. Before their RAM was upgraded to 8GB, both laptops
were fried and destroyed due to electrical shock caused by a short circuit at
Thundermatch’s store. Based on this situation and with reference to the Sale of Goods Act
1957 or any decided cases, answer the following separate and independent questions.

(a) Determine whether the contract between Firdaus and Anuar is governed by the Sale
of Goods Act 1957.

(b) Identify when the property in the laptops has passed to the buyer and who shall bear
the losses of the laptops.

(c) Assuming that the property in the laptops has passed to Firdaus but Anuar, who still
has possession of the laptops, sold them to Hussain for RM2,800 each. Hussain paid
Annuar for the price and now, he (Hussain) has the possession of the laptop. Advise
Firdaus on whether he can claim the laptops from Hussain. (April 2020 Exam)

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