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.
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L’Estrange v Graucob Ltd [1934] 2 KB 394
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14. Delivery and payment
This chapter considers the duty of the seller to deliver the goods and the duty of the buyer to accept the goods and to pay the price. Payment and delivery are concurrent conditions in a contract of sale. This means that the seller must be ready and willing to deliver the goods, and the buyer must be ready and willing to pay for them in accordance with the terms of the contract. The parties to the contract can make whatever agreement they want in respect of delivery and payment and, in practice, will often do so in relation to the time, place, and manner of the delivery and the payment. Where the parties have not agreed on these matters, the Sale of Goods Act 1979 (SGA 1979) lays down certain rules, which are discussed in detail in the chapter. Similar rules apply to consumer sales under the Consumer Rights Act 2015.
Chapter
8. Background To The Sale Of Goods Act 1979
This chapter outlines the Sale of Goods Act 1979 (SGA), which is the set of legal rules primarily concerned with the sale of goods. It presents the history of sales law, acknowledging that the modern law of sale is largely found in the SGA. The SGA primarily aims to remove the need to consult prior case law. Thus, decisions of courts in cases prior to the Act should only be examined for guidance in cases where the language of the Act is unclear or ambiguous. The chapter then reflects on the future of sales law, which is considered to be the heart of commercial activity.
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Smith v Hughes (1871) LR 6 QB 597 includes commentary on Centrovincial Estates plc v Merchant Investors Assurance Company Ltd [1983] Com LR 158
Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Smith v Hughes (1871) LR 6 QB 597 including commentary on Centrovincial Estates plc v Merchant Investors Assurance Company Ltd [1983] Com LR 158. The document also includes supporting commentary from author Nicola Jackson.
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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.
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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
24. Introduction
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
This chapter serves as an introduction to commercial credit and security. Credit plays an important role in the world of commerce. In the sale of goods, for example, the seller may have to borrow money from a bank so that he can obtain the buyer’s order and supply the goods as required. The bank loan is a form of credit. This chapter first considers the definition of credit before discussing two forms of credit: loan credit and sale credit. It then examines the nature and purpose of security, real security and security interest, and quasi-security. It also describes the three stages involved in the process of creating an effective security interest: attachment, perfection, and priorities. Finally, it analyses the agreement to give security over future property and the proposed reform of the applicable law.
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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
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.
Book
David Fox, Roderick Munday, Baris Soyer, Andrew Tettenborn, and Peter Turner
All books in this flagship series extract key cases, legislation, and academic debate, providing students with an invaluable resource. This new edition includes discussion of new legislation, including the new Insolvency Act 1986, ss 263H–263O; the Payment Services Regulations 2017; the Electronic Presentment of Instruments (Evidence of Payment and Compensation for Loss) Regulations 2018; and the Business Terms (Assignment of Receivables) Regulations 2018. In addition it discusses new case law such as Glencore International AG v MSC (on personal property law and shipping documents); Volcafe Ltd v Cia Sud Americana de Vapores (on bailment); Kaefer Aislamientos v AMS Drilling Mexico, Bailey v Angove’s Pty, and Banca Nazionale del Lavoro v Playboy Club (on agency); PST Energy 7 Shipping v OW Bunker Malta, Bajaj Healthcare v Fine Organics, Gunvor v Sky Oil & Gas, and Euro-Asian Oil SA v Crédit Suisse AG (on sale of goods); The Erin Schulte and Taurus Petroleum v State Oil Company (on trade finance); BP Oil International v First Abu Dhabi Bank (on assignment); Haywood v Zurich Insurance, The DC Merwestone, and Axa Insurance UK v Financial Claims Solutions (on insurance); and Jetivia SA v Bilta (UK) Ltd and JSC BTA Bank v Ablyazov (on insolvency). Other developments are also covered, such as the proposed reform of bills of sale recommended in the 2017 Law Commission report on Bills of Sale. The book contains a new introductory section on the likely detailed impact of Brexit on English commercial law.
Chapter
1. Introduction to contracts of sale 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 provides a general introduction to sale of goods law in the UK. It explains the sale of goods contract, why there is a different framework for these types of contract under English law, and the specific legislation for contracts of sale of goods and other relevant transactions. The chapter considers the statutory definitions for contract, property, and goods and discusses the distinction between sales and agreements to sell, between specific goods and unascertained goods, and between existing goods and future goods. The chapter introduces and provides an analysis of the Consumer Rights Act 2015, which subsequent chapters then build upon. Finally, it examines contracts other than of sale of goods.
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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.
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2. Statutory implied terms
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 significance of the terms implied into sale of goods contracts under the Sale of Goods Act 1979 and the statutory rights that are implied in a contract between trader and consumer by virtue of the Consumer Rights Act 2015. It explains the seller’s right to sell the goods, the goods being free from encumbrances and the buyer enjoying quiet possession of them, sales by sample, and the description and quality of the goods, as well as their fitness for purpose. Digital content is also discussed in relation to consumer transactions. The chapter also considers the terms implied into other kinds of contract by different statutes, including the terms implied by the Supply of Goods and Services Act 1982.
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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.
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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
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.
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10. An introduction to the sale of goods
This chapter discusses the law relating to the sale of goods, which lies at the heart of commercial law and regulates sales of different kinds from domestic retail to cross-border internet transactions. Sale of goods law also lies at the heart of other aspects of commercial law, such as the law of agency, where agents are often appointed solely for the purpose of selling their principal’s goods. Contracts for finance and for insurance are further examples of transactions that often depend on the sale of goods for their entire purpose. It must be noted that a contract of sale is still a contract, even if it has special features. Therefore, all elements for establishing the contract must be present, these being offer, acceptance, consideration, certainty, and the intention to create legal relations.
Book
Eric Baskind, Greg Osborne, and Lee Roach
Commercial Law offers a fresh, modern, and stimulating account of the subject, thereby helping students better understand this important area of law. It provides thorough coverage of all key aspects of the syllabus, including the law of agency, the sale of goods, international trade, and methods of payment, finance, and security. A range of learning features is employed throughout the book to encourage understanding of the law, and to demonstrate how the principles behind it play out in practical domestic and international commercial transactions. Practical, fictional case studies are referred to in example boxes throughout the book, demonstrating the types of legal issues and problems that the law is intended to regulate, and helping students to understand the context and practical application of the law. The book includes: regular case boxes throughout the text to highlight cases of importance, providing a succinct account of the material facts of the case, a clear account of the court’s decision and reasoning, and, where appropriate, commentary on the decision; key legislation boxes to help students understand which statutory provisions are of fundamental importance; and definitions of key terms, which appear in the margins the first time the term is used, thus ensuring that students are not confused by the terminology of the subject.
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15. Statutory implied terms and statutory rights
This chapter discusses the common law rule of caveat emptor, which today has been largely eroded by the original Sale of Goods Act 1893 (SGA 1893) that introduced the statutory implied terms of quality and fitness for purpose. It is shown here that the principle of caveat emptor is still alive and well in relation to purely private sales because the terms implied by the Sale of Goods Act 1979 (SGA 1979) in relation to the quality and fitness for purpose of the goods only apply to sales made in the course of a business. Sale of goods contracts are still, therefore, governed by the principle of caveat emptor to some extent, although this is subject to other enactments. This chapter also discusses the Consumer Rights Act 2015 (CRA 2015) which came into force on 1 October 2015.
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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.
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