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CLASSIFICATION OF ‘GOODS’

EXISTING GOODS FUTURE GOODS


(Section 6) (Section 2)

 Already owned by the  Goods to be


seller. manufactured by the
 May be agreed at the seller.
time contract is made.  After the making of the
contract of sale.

UNASCERTAINED GOODS
SPECIFIC GOODS (Section 18)
(Section 2)
 Goods not identified and
 Goods identified and agreed upon at the time
agreed upon at the time a a contract is made.
contract of sale is made.  Goods identified by
description only
IMPLIED TERMS OF CONTRACT
(SECTION 14 TO SECTION 17 SOGA)
AS TO TITLE

AS TO
SALE BY
QUALITY/FIT
DESCTIPTION
FOR PURPOSE
IMPLIED
CONDITION
SECTION
12(2)

AS TO
SALE BY
MERCHANTABLE
SAMPLE QUALITY
IMPLIED TERM/CONDITION AS TO TITLE
[SECTION 14(a)]

 Seller must have title/owner in goods to transfer to buyer in sale of goods contract.
 If seller does not have title, seller is in breach and buyer can terminate the contract.

Case law: Rowland v Divail


IMPLIED CONDITION THAT THE GOODS CORRESPOND WITH DESCRIPTION
(SECTION 15)

 The obligation of the seller is absolute.


 For specific goods- buyer has not seen the goods and is relying on description (e.g. Mail order,
catalogue)

Case: Nagurdas Pushotumdas & Co v. Mitsui Bussan Kaisha LTD


IMPLIED CONDITION AS TO FITNESS FOR PARTICULAR PERPOSE
(SECTION 16(1)(a)

 Condition to be fulfilled by the buyer in order to invoke section 16(1)(a):

1) Disclosure of purpose

Case law: Griffiths v. Peter Conway LTD


2) Reliance on seller’s skill & judgement

Case law: Cammell Laird & Co v. Manganese Bronze & Brass Co.LTD

3) Goods supplied are the kind that seller normally supply in his business.
4) The goods were not bought under patent or trade name

Case law: Baldry v. Marshall


IMPLIED CONDITION AS TO MERCHANTABLE QUALITY
(section 16(a)(b))

 Merchantable quality is a goods must not be defective. Goods must be of a quality


suitable for its use-depends on the description of the good.
 If the goods were unmerchantable, the seller would be liable for breach of implied
condition, even they are sold under their patent or trade name

Case law: Wilson v. Ricket, Cockerel & Co LTD


 Exception: if buyer has examined the goods & defects ought to have been revealed, buyer
cannot claim that seller has breached the condition.
 If examination/inspection carried out but could not be discovered, implied condition as to
merchantable quality applies.
IMPILIED CONDITION IN A SALE BY SAMPLE
(SECTION 17(2))

 3 condition are implied:


1) The goods must correspond with the sample
2) The buyer must be given reasonable opportunity to compare the bulk with the
sample.
3) The goods must be free from defect.

Case law: Godley v. Perry

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