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Chapter

Cover Commercial Law

17. The remedies of the buyer  

This chapter sets out the remedies available to the buyer under a contract of sale. Before the Sale and Supply of Goods to Consumers Regulations 2002, these remedies comprised damages for non-delivery of the contract goods, specific performance, and damages for breach of warranty. In cases of breach of condition, the buyer generally has the right to reject the goods and repudiate the contract. Since implementation of the 2002 Regulations, a buyer who deals as consumer has additional remedies of repair, replacement, reduction in price, or rescission. These additional consumer remedies are discussed after a consideration of the remedies that are available to all buyers, including consumers, beginning with those remedies granted to a buyer where the seller fails to deliver the goods, or fails to deliver on time. Certain consumer contracts entered into after 1 October 2015 are governed by the Consumer Rights Act 2015, which is also discussed.

Chapter

Cover Commercial Law

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

Cover Sealy and Hooley's Commercial Law

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.

Chapter

Cover Sealy and Hooley's Commercial Law

8. Introduction and definitions  

D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner

This chapter serves as an introduction to the English law governing sale of goods, along with relevant definitions. It introduces the common law of sale of goods and its subsequent codification by the Sale of Goods Act 1893, later consolidated in 1979 and which (following further minor amendments) is now the principal source of the law. It also considers some key definitions relating to sale of goods, before discussing the nature of a sale and how it differs from related transactions such as barter or exchange, bailment, agency, and hire-purchase.

Chapter

Cover Sealy and Hooley's Commercial Law

9. Passing of the property in the goods as between seller and buyer  

D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner

This chapter examines the concept of the passing of the property in goods as between seller and buyer which has significance for many purposes in law. It discusses why the matter is important, before going on to cover the rules for determining when the property passes as it is plainly a matter of the greatest importance to identify the point at which it occurs. The chapter goes on to discuss the statutory provisions relating to perishing of specific goods, how the passing of property is related to acceptance or rejection of goods, the risk involved in the passing of property, and the frustration of sale of goods contracts.

Chapter

Cover Commercial Law

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

Cover Essential Cases: Contract Law

L’Estrange v Graucob Ltd [1934] 2 KB 394  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in L’Estrange v Graucob Ltd [1934] 2 KB 394. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Essential Cases: Contract Law 5e

L’Estrange v Graucob Ltd [1934] 2 KB 394  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in L’Estrange v Graucob Ltd [1934] 2 KB 394. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Sealy and Hooley's Commercial Law

13. Remedies of the seller  

D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner

This chapter focuses on the remedies of the seller where the goods are not accepted or paid for by the buyer. The subjects covered in the chapter include both money claims against the buyer, notably for the price or for damages for breach of contract, and claims against the goods or their proceeds in order to provide security where the buyer has failed to pay (eg lien, stoppage in transit, and resale). Reservation of title is also dealt with. There is also a brief mention of the remedy of specific performance.

Chapter

Cover Introduction to Business Law

9. The Sale of Goods and Supply of Services  

This chapter discusses the rules relating to agreements for the sale and supply of goods and services. Contracts for the sale of goods and terms implied into business to business contracts by the Sale of Goods Act 1979 are examined. The Consumer Rights Act 2015, introduced to simplify and enhance the position of consumers, is considered. The terms of contracts between traders and consumers for the sale and supply of goods, services, and digital content are discussed together with remedies for breach of contract. Rights to ownership and possession of goods, and when rights may be transferred from a seller to a buyer are explained. General rules on delivery of goods, the duties of a seller and buyer, and the remedies available for breach are discussed. Finally, the terms of business to business contracts for the supply of goods and services, hire of goods, and hire purchase are discussed.

Chapter

Cover Commercial Law Concentrate

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

Cover Commercial Law Concentrate

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

Cover Commercial Law Concentrate

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

Cover Essential Cases: Contract Law

George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd [1983] 2 AC 803  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd [1983] 2 AC 803. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Essential Cases: Contract Law 5e

George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd [1983] 2 AC 803  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd [1983] 2 AC 803. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Commercial Law Concentrate

4. Retention of title clauses  

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 retention of title clauses, also known as reservation of title clauses, in sale of goods contracts. It explains how retention of title (or Romalpa) clauses are especially useful in cases where the buyer becomes insolvent and then stresses the importance of properly incorporating a retention of title clause into the contract of sale. The chapter examines the 1976 Romalpa case and its influence on retention of title cases. It considers ‘all-liabilities’ clauses in contracts of sale of goods and concludes by discussing criticisms against retention of title clauses and how, in practice, they might fail. The chapter discusses the 2014 Court of Appeal decision in FG Wilson (Engineering) Ltd v John Holt & Co (Liverpool) Ltd, which illustrates the dangers of retention of title clauses, which can leave buyers somewhat unprotected, and how a degree of balance was reintroduced by the Supreme Court in PST Energy 7 Shipping LLC and another v OW Bunker Malta Ltd and another [2016].

Chapter

Cover Commercial Law Concentrate

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

Cover Commercial Law Concentrate

5. Exclusion and limitation clauses  

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 clauses designed to exclude or limit a party’s liability, first considers exclusion or limitation clauses in the UK under common law rules, the Unfair Contract Terms Act 1977, and the Consumer Rights Act 2015. It explains the distinction between an exclusion clause and a limitation clause before discussing the two main methods of controlling exclusion clauses adopted by the courts. The chapter examines the exclusion or restriction of the statutory implied terms under the Sale of Goods Act 1979, the Supply of Goods (Implied Terms) Act 1973, and the Supply of Goods and Services Act 1982. Finally, it considers the rules introduced by the Consumer Rights Act 2015 in relation to consumer transactions.

Chapter

Cover Commercial Law Concentrate

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

Cover Sealy and Hooley's Commercial Law

15. International sales  

D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner

This chapter examines the rules of English law governing international commercial sales, a subject of disproportionate importance because of the surprisingly large proportion of international trade carried on under contracts governed by English law by choice of the parties. Contracts of this type expose the parties to greater risks than purely domestic sales. The chapter gives detailed coverage of typical export transactions and INCOTERMS, both marine and non-marine, including FOB contracts, FAS contracts, CIF contracts and variants of the CIF contract, and DAP contracts as well as FCA, CIP, and similar contracts. Likely future developments are also mentioned.