Sale of Goods Acts Reviews

  

Formalities and elements of Contract:

   
   There is no formal requirement for the creation of contract. It can be made by oral, writing, or maybe implied by conduct, behaviour and customs. 


    Parties involved:seller and buyer. Their capacity is governed by contract Act 1950.


     Price:The Price of goods can be set by the contact, determined according to a course dealing with the parties (buyer and seller). When The price cannot be determined by either of these method, the buyer must pay a reasonable price. There must be Offer and Acceptance indeed before proceed to transaction.


   These Three Element is vital for a formation of contract.


Term of Contract:
      Two types of terms of contract are specified in SOGA which are Condition and Warranty. 


Condition: A stipulation Which is Essential to the main contract. Whatever rules written in the contract are the most important and close to to the purpose of the contract. It defines "What make the contract happened in between both parties". For example: The term of contract states that a computer in good condition is sold. In this case, we may want to know the most on how "good" is good of the condition.


Warranty: A stipulation which is collateral to the main contract. Rule written in the contract which is not as important as to be the main purpose of the contract in which the statement is supplementary. For example: posters on the road states that " to buy a computer will from us, you will get $100 voucher, and a little statement at the bottom of the poster states that LIMITED 100 vouchers". In this situation, the main purpose of both parties is to sell and buy the computer, but not because of the purpose of the $100 voucher.


      Mostly, what I mentioned above is just a expressed contract which is stated under the knowledge of both parties. Yet, there are some implied terms which can protect consumers.


Implied Terms:


       Title:Title of ownership of the good and the owner has right to sell goods.
       Quiet Possession of Good: buyer shall have ownership and enjoy quiet possession.
       Encumbrance or Charge: Goods shall be free from charge or encumbrance in favour of any third party not declared or known to the buyer before or at the time when the contract is made. 
       Sale by description & sale by sample: It is not sufficient that the bulk of the goods do not correspond with the sample or description.
        Fitness for Purpose: buyer make known of the seller for the purpose which goods are required. So, seller is assumed to show their skill or judgement and the good are of description which is the business supplies.
        Merchantable Quality: The good shall be in merchantable quality.