This chapter considers the various circumstances in which a buyer may become the owner of the goods, notwithstanding that the seller is neither the owner of them, nor sold them with the owner’s consent. In the chapter, disputes concern not the seller but the owner of the goods and the buyer. The chapter presents a case that provides an example of the sort of problems which can arise in such disputes. A common theme in these types of cases is dishonesty, whereby the court will have to decide which of two innocent parties should suffer due to the dishonesty of another. This can arise in many different situations, such as where an innocent buyer buys goods from a seller who turns out to have stolen them or where a person obtains goods on hire purchase and dishonestly sells them before they have been paid for.
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Chapter
12. The transfer of title by a non-owner
Chapter
13. Perishing of goods
This chapter considers the effect on the parties’ contract of sale in the event that the goods perish. Before doing so, it considers briefly the position of non-existent goods. It might be considered sensible to think that where the seller sells specific goods, a condition would be implied that the goods existed at the time of the making of the contract and that the seller would be liable to the buyer if he sold goods that did not exist. The seller, after all, does warrant that he or she has the right to sell the goods and, where he or she sells the goods in the course of a business, also warrants that they are of satisfactory quality and fit for purpose. However, such a seller is generally not liable.
Chapter
11. The transfer of property and risk
This chapter discusses the transfer of property between seller and buyer, and considers the passing of risk. The general rule about risk is that unless the parties have otherwise agreed, risk passes with property, although the position is different when the buyer deals as consumer. With regard to payment, unless otherwise agreed, the seller may only sue the buyer for the price once property in the goods has passed, and, if either the seller or the buyer becomes insolvent, then the rights of the other non-insolvent party may depend on whether or not property in the goods has passed to the buyer. Furthermore, although subject to a number of exceptions, unless the buyer has acquired ownership in the goods, he cannot transfer that ownership to another party.
Chapter
16. The remedies of the seller
This chapter considers the remedies available to a seller if the buyer fails to pay for the goods pursuant to a contract of sale. It should be noted at the outset that the term ‘seller’ also includes ‘any person who is in the position of a seller, such as an agent of the seller to whom a bill of lading has been indorsed, or a consignor or agent who has himself paid (or is directly responsible for) the price’. This is of particular assistance to an agent who, having paid the price to the seller with the intention of recovering the money from the buyer, will have the same protection afforded to unpaid sellers as if he or she were the seller directly.
Chapter
12. The condition of the goods and statutory implied terms
This chapter tackles the condition of the goods and statutory implied terms. If the terms of the broken contract between the seller and buyer involve a condition, the buyer may be entitled to reject the goods and terminate the contract. Sections 12 to 15 of the Sale of Goods Act 1979 (SGA) indicate the conditions of implied terms. The chapter explains that implied terms require the goods supplied to conform to the buyer's legitimate expectations, which then may allow the buyer to complain about a breach if their expectations are not met. It also considers how the seller's power to exclude the implied terms, or liability for their breach, is limited by the Unfair Contract Terms Act 1977.
Chapter
29. Financing international trade
This chapter covers the financing of international trade. It details the nature, essential characteristics, and stages of documentary credit transaction, wherein the buyer is required to enter into an arrangement with a bank whereby the bank gives the seller an undertaking to pay the price due under a contract. Essentially, the documentary credit is ideal as a payment guarantee, particularly in contracts of sale. However, other breaches may take place, such as failing to deliver or extensive losses to the buyer. The chapter then offers different performance guarantee arrangements which share features of the documentary credit while securing the performance of obligations other than financial payment.
Chapter
10. Remedies of the buyer
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter examines the various remedies that are available to a buyer under a contract of sale of goods where the seller is in breach of the sales contract. It considers the regime of remedies introduced by the Consumer Rights Act 2015 and discusses a range of remedies such as rejecting the goods, suing for non-delivery or late delivery of the goods, suing for damages following the seller’s breach of warranty, requiring the seller to repair or replace the goods, claiming from the seller a reduction in the price, or rescinding the contract. The chapter then explains the difference between breach of condition of the contract and breach of warranty.
Chapter
3. Passing of property and risk
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter focuses on the transfer of property and risk from the seller to the buyer as agreed upon in a contract of sale of goods. It explains the difference between ownership and possession and discusses the rules on the passing of property, as well as which party bears the legal risk in cases where, for example, the goods are destroyed or in the event of insolvency. The rules relating to both consumer and non-consumer buyers are included. Finally, the chapter examines the unconditional appropriation of the goods to the contract, appropriation by delivery to a carrier, ascertainment and appropriation ‘by exhaustion’, and undivided shares in goods forming part of a bulk.
Chapter
6. Non-existence and perishing of goods
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter examines the effect of the contract of sale of goods in the event that the goods never existed or, if they did exist at one time, are no longer in existence. It first looks at the contract for the sale of specific goods which, without the knowledge of the seller, have perished at the time when the contract is made and then considers an agreement to sell specific goods which, without any fault on the part of either party, subsequently perish before the risk passes to the buyer. The chapter also explains the frustration of a contract for the sale of unascertained goods under s 7 of the Sale of Goods Act 1979 and the question of monies owing or to be repaid under the Law Reform (Frustrated Contracts) Act 1943.
Chapter
7. Transfer of ownership by a non-owner
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter, which focuses on the situation where a seller is able to transfer ownership of certain goods to a third party despite having no right to the goods, first explains the so-called nemo dat rule, which protects the true owner of the goods and the innocent purchaser gets no title whatever. It then considers several statutory exceptions to the nemo dat rule that protect the innocent purchaser. The chapter also examines how estoppel is applied, sale by a mercantile agent, void and voidable contracts, sale by a seller in possession after sale, sale by a buyer in possession after sale, sale of a vehicle acquired on hire purchase, the (now repealed) sale in market overt, and special powers of sale.
Chapter
8. Delivery, acceptance, and payment
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter focuses on the duty of the seller to deliver the goods and the duty of the buyer to accept them and to pay the price. It first explains the meanings of delivery, acceptance, and payment as well as the provision in the Sale of Goods Act 1979 in respect of these matters, and then considers the distinction between consumer and business buyers and cases where the wrong quantity of goods has been delivered. The chapter also discusses delivery by instalments, delivery to a carrier, and the right of the buyer not to return rejected goods.
Chapter
9. Remedies of the unpaid seller
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter considers the remedies that are available to a seller against the buyer for breach of contract and the position when the buyer refuses delivery of the goods. These are real remedies and personal remedies, which are set out in Parts V and VI of the Sale of Goods Act 1979. An example of a real remedy is a lien over the goods, whereas two examples of a personal remedy are an action for the price and damages for non-acceptance of the goods.
Chapter
10. Duties of the parties
This chapter details the duties of the parties as part of a contract sale according to the Sale of Goods Act 1979 (SGA). Section 27 of the SGA does not contain a complete statement of the parties' duties, but Section 28 does define the relationship between the duties of seller and buyer. Each party's duty to perform is conditional on the readiness and willingness of the other to perform and commercial agreements normally provide for the goods to be delivered on credit terms so that payment is due after delivery. SGA's Section 27 indicates that the duties of parties revolve around delivery, acceptance, and payment in accordance with the terms of the contract. The chapter then analyses the notion of exclusion clauses.
Chapter
11. Delivery
This chapter covers the importance of delivery. Section 27 of the Sale of Goods Act 1979 (SGA) presents the seller's basic obligation regarding the delivery of goods, which, the chapter argues, provides great significance to the passing of property from seller to buyer. If the seller wholly fails or refuses to deliver, they are in breach of contract; this allows the buyer to claim damages for non-delivery. The chapter also considers the situation wherein the buyer may reject the delivery and repudiate the contract. It examines how the Consumer Rights Act 2015 retains certain aspects of the SGA regime for consumer buyers.
Chapter
13. The buyer’s remedies
This chapter presents the remedies for buyers if a seller breaches their obligations under the contract. Some breaches allow the buyer to reject the goods and terminate the contract. The buyer's basic remedies under the Act are the right to reject the goods, terminate the contract, and claim damages. The Consumer Rights Act 2015 (CRA 2015) provides a distinctive legal regime for consumer sale, which includes four remedies to the consumer where goods are not in conformity with the contract. The chapter then enumerates the rights under CRA 2015: the right to reject goods, the right to cure encompassing the repair or replacement of the goods, reduction of the price payable, and a final right to reject.
Chapter
14. The duty to pass a good title
This chapter considers the duty to pass a good title. It defines the key concepts surrounding property, title, and the right to sell. The courts treat the failure to pass a good title as a fundamental failure on the part of the seller so that the buyer can end the contract and obtain their full purchase price without any reduction for the use of the goods. Meanwhile, section 12 of the Sale of Goods Act 1979 (SGA) cannot be excluded by any contract term. However, the provision does allow the seller to effectively avoid liability for breach of the implied warranties if they can reveal any relevant encumbrance or charge before the contract.
Chapter
20. Financing The Transaction
This chapter looks into the process of financing transactions. It starts with how to satisfy a buyer's obligation of payment, which includes alternatives like giving a promissory note or having a third party finance the payment. The circumstances of whether or not the seller provides the buyer with credit ultimately depend on the relative bargaining power of the parties. The chapter then discusses how digitalization affected commercial technologies, referencing the development of blockchains and cryptocurrencies. It explains that aspects of digitalization relate to the control of assets and security over intangible assets, while the growth in importance and value of digital assets raised questions about the reformation of the current law.
Chapter
10. Transfer of title
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter examines how a buyer can get good title to goods where the seller’s own title is non-existent or problematic. It provides an overview of the rule nemo dat quod non habet and then discusses various exceptions to it, including estoppel, sale under the Factors Act 1889, sale under a voidable title, sale by seller continuing in possession, and sale by a buyer in possession. In addition this chapter compares the common law and civil law approaches to the problem and encourages a critical approach to the issues it raises.
Chapter
11. Seller’s obligations as to quality
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter considers the seller’s obligations as to the characteristics and quality of goods sold. The main concentration is on the implied terms under ss 13–15 of the Sale of Goods Act 1979 requiring goods to correspond with their description, to be fit for purpose and of satisfactory quality, and to match any sample provided. But considerable stress is also laid on the vital practice of commercial parties to draft their own bespoke terms and oust those otherwise implied. The chapter also covers the contractual liability applying between seller and buyer.
Chapter
12. Performance of the contract
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter considers the duties of the seller to give a good title to the goods he sells and physically to deliver those goods to the buyer in accordance with the terms of the contract of sale. The chapter also examines the provisions of the Sale of Goods Act 1979 relevant to the sale of a limited title and the implied warranties as to freedom from encumbrances and quiet possession. Finally, it describes the statutory duties of the buyer to take delivery, to accept the goods, and to pay the price.
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