This document discusses key aspects of sales of goods law in Malaysia. It covers:
1) The applicable law is the Sales of Goods Act 1957 (Revised 1989).
2) There are two types of contracts for the sale of goods - an absolute contract where title passes immediately, and a conditional contract (agreement to sell) where title passes at a future time or when conditions are fulfilled.
3) For a valid contract of sale, there must be parties, goods as the subject matter, consideration in the form of a price, and formation through offer and acceptance. Implied terms as to title, quiet possession, and freedom from encumbrances are also discussed.
The document discusses the law of adverse possession and squatting on state and private land in Malaysia. It explains that adverse possession does not apply under Malaysian law and squatters have no legal rights, even after long occupation. The cases cited show that courts have consistently held squatters cannot claim rights to land and the state authority has sole power to alienate state land.
Criminal force requires the intentional or knowing application of force without consent, with the aim of causing an ulterior object. Case law establishes that threatening to harm someone if they advance constitutes criminal force, as does deliberately reversing a vehicle into another. Merely raising a stick threateningly enough to cause someone to flee also meets the standard. Attempting to undress someone against their will equally qualifies as criminal force used to outrage modesty. Words alone do not necessarily constitute criminal force if their meaning is too vague.
This document summarizes the laws around criminal liability for minors in Malaysia. It outlines that under Malaysian law, children under 10 cannot be criminally liable, while those between 10-12 may not be liable if they are found to not understand the nature and consequences of their actions. It compares these provisions to English common law. The document also discusses two court cases that further illustrate how these defenses for minors are applied and interpreted.
Equity will assist a volunteer in some circumstances, such as when there is an imperfect gift or transfer of property. In Strong v Bird, equity perfected an imperfect inter vivos gift when the donee became the executor of the donor's estate and the donor's intention to make the gift continued until death. Proprietary estoppel is also an exception, where a volunteer relies on a promise of an interest in land and suffers detriment. The court will prevent unconscionable conduct and perfect the imperfect transfer.
Criminal Law II - General Defences (Part 2)intnmsrh
The document summarizes general defences in criminal law, including consent, duress, and private defence.
Consent is not a defence if given under fear, misconception, unsoundness of mind, or by a minor. Duress is a defence for threats of instant death that reasonably cause apprehension, but not if the accused voluntarily exposed themselves to threats.
Private defence must be used to avert an impending danger, commences with reasonable apprehension of harm, and ends when the apprehension stops. More harm than necessary cannot be inflicted, and recourse to authorities must be attempted if possible.
Assault under Section 352 of the Malaysian Penal CodeYasmin Adilah
Abang confronted Bomoh at a coffee shop angrily over a matter involving Abang's sister. Abang lunged threateningly at Bomoh and said he would teach Bomoh a lesson he would never forget. As Abang was about to hit Bomoh, others restrained him. Abang intended to cause Bomoh apprehension of imminent physical force based on his threatening gestures and words. A reasonable person in Bomoh's position would fear immediate force based on Abang's actions. Thus, Abang can likely be found liable under Section 351 of the Penal Code for assault on Bomoh.
The police arrested two men on suspicion of causing a traffic accident that killed one person based on a complaint filed the previous day. The police detained the men overnight without evidence of any wrongdoing. The men sued the police for false imprisonment. The court found that while the police were entitled to make an arrest if reasonable suspicion existed, they did not have grounds to suspect the men were driving recklessly. As such, the arrest and detention were unlawful and the police were liable for false imprisonment. The court ordered judgment accordingly.
Anton Piller order
Assignment of Choses in Action
Effect of Section 6 Civil Law Act 1956 in respect to equity
Fusion of Law and Equity
Meaning of maxims and illustrations from cases
Perpetual injunction
Promissory Estoppel
Reception of Equity in Malaysia
The document discusses the law of adverse possession and squatting on state and private land in Malaysia. It explains that adverse possession does not apply under Malaysian law and squatters have no legal rights, even after long occupation. The cases cited show that courts have consistently held squatters cannot claim rights to land and the state authority has sole power to alienate state land.
Criminal force requires the intentional or knowing application of force without consent, with the aim of causing an ulterior object. Case law establishes that threatening to harm someone if they advance constitutes criminal force, as does deliberately reversing a vehicle into another. Merely raising a stick threateningly enough to cause someone to flee also meets the standard. Attempting to undress someone against their will equally qualifies as criminal force used to outrage modesty. Words alone do not necessarily constitute criminal force if their meaning is too vague.
This document summarizes the laws around criminal liability for minors in Malaysia. It outlines that under Malaysian law, children under 10 cannot be criminally liable, while those between 10-12 may not be liable if they are found to not understand the nature and consequences of their actions. It compares these provisions to English common law. The document also discusses two court cases that further illustrate how these defenses for minors are applied and interpreted.
Equity will assist a volunteer in some circumstances, such as when there is an imperfect gift or transfer of property. In Strong v Bird, equity perfected an imperfect inter vivos gift when the donee became the executor of the donor's estate and the donor's intention to make the gift continued until death. Proprietary estoppel is also an exception, where a volunteer relies on a promise of an interest in land and suffers detriment. The court will prevent unconscionable conduct and perfect the imperfect transfer.
Criminal Law II - General Defences (Part 2)intnmsrh
The document summarizes general defences in criminal law, including consent, duress, and private defence.
Consent is not a defence if given under fear, misconception, unsoundness of mind, or by a minor. Duress is a defence for threats of instant death that reasonably cause apprehension, but not if the accused voluntarily exposed themselves to threats.
Private defence must be used to avert an impending danger, commences with reasonable apprehension of harm, and ends when the apprehension stops. More harm than necessary cannot be inflicted, and recourse to authorities must be attempted if possible.
Assault under Section 352 of the Malaysian Penal CodeYasmin Adilah
Abang confronted Bomoh at a coffee shop angrily over a matter involving Abang's sister. Abang lunged threateningly at Bomoh and said he would teach Bomoh a lesson he would never forget. As Abang was about to hit Bomoh, others restrained him. Abang intended to cause Bomoh apprehension of imminent physical force based on his threatening gestures and words. A reasonable person in Bomoh's position would fear immediate force based on Abang's actions. Thus, Abang can likely be found liable under Section 351 of the Penal Code for assault on Bomoh.
The police arrested two men on suspicion of causing a traffic accident that killed one person based on a complaint filed the previous day. The police detained the men overnight without evidence of any wrongdoing. The men sued the police for false imprisonment. The court found that while the police were entitled to make an arrest if reasonable suspicion existed, they did not have grounds to suspect the men were driving recklessly. As such, the arrest and detention were unlawful and the police were liable for false imprisonment. The court ordered judgment accordingly.
Anton Piller order
Assignment of Choses in Action
Effect of Section 6 Civil Law Act 1956 in respect to equity
Fusion of Law and Equity
Meaning of maxims and illustrations from cases
Perpetual injunction
Promissory Estoppel
Reception of Equity in Malaysia
This document summarizes equitable remedies available under equity law, including injunctions and specific performance. It discusses the circumstances in which these remedies may be granted or refused by courts. Equitable remedies are designed to supplement common law remedies and are granted at the court's discretion to redress wrongs. Specific performance allows a court to order a party to carry out contractual obligations, while injunctions can be prohibitory (to refrain from an act) or mandatory (to perform an act). Courts will consider factors like adequacy of damages, claimant's conduct, readiness to perform contractual obligations, and delay or acquiescence when deciding whether to grant equitable remedies.
This is a comparative study on the concept of illegally obtained evidence between Malaysia, United Kingdom, United States of America and the concept from Islamic Perspective.
This document discusses the legal principles of occupier's liability in tort law. It begins by defining key terms like "occupier" and explaining that occupier's liability concerns the duty owed by those in control of premises to prevent injuries to visitors from defects in the static state of the premises.
It then examines cases that establish the legal tests for determining who qualifies as an occupier, such as those with control or the legal right to possession. The document also categorizes different types of visitors and outlines the varying duties of care occupiers owe to contractual visitors, invitees, licensees, and trespassers from highest to lowest. Finally, it provides examples of how these principles have been applied regarding what constitutes an
This document provides an overview of the topic of sale of goods under commercial law. It begins by outlining the key aspects that will be discussed, including the formation of a sale of goods contract, transfer of title, warranties, and remedies for buyers and sellers. Various terms related to sale of goods are defined. The reading then examines the elements of a valid sale of goods contract and what constitutes "goods". It discusses how ownership and possession are transferred, along with implied terms regarding quality, description, and sale by sample. Finally, the document reviews remedies available to sellers who still possess the goods, sellers who do not, and remedies buyers have for breach of warranties or non-delivery.
Civil Family Law - Promise to Marry (Betrothal)Azrin Hafiz
This document discusses the law around betrothal or a promise to marry in Malaysia. It defines betrothal as an agreement to marry between two parties. For a betrothal contract to be valid, there must be an offer and acceptance, consideration in the form of consent to marry, and the parties must have the capacity to marry. The document outlines the requirements for capacity including that the parties must be single, of age, not within a prohibited degree of relationship, and of religions that do not prevent marriage. It discusses exceptions and cases related to these requirements. The document also examines what constitutes a breach of contract if the betrothal is valid and potential defenses a defendant could raise. Finally, it lists the available remedies if
Samy and Kutu, both aged 11, are charged with attempted theft of a motorcycle. They can claim the defense of infancy under Section 83 of the Penal Code if they are found to lack sufficient maturity and understanding of their actions. However, evidence that they skillfully cut the lock with a tool and fled from police suggests they understood the wrongful and prohibited nature of their conduct, meaning Section 83 defense would not apply in this case.
A private caveat is an interim procedure that allows a person claiming a title or registrable interest in land to freeze the land title registration until their claim can be resolved. A private caveat is entered by the Registrar upon application showing the claimant's caveatable interest. It has the effect of prohibiting any dealings with the land, including transfers or mortgages, except with the caveator's consent. To enter a caveat, the claimant must have a potential legal claim to the land, such as under a contract of sale, gift, or trust, that could ultimately result in registration of their interest.
This document discusses exceptions to indefeasibility of title under Malaysian land law. It outlines the main exceptions in Section 340(2) of fraud, forgery, and defective instruments. It provides details on the elements required to prove fraud, including that the registered proprietor must be party or privy to the fraud with intention to cheat. Forgery relates to the instrument of transfer being invalid rather than the parties' acts. Case examples are discussed regarding fraud, forgery, and defective instruments such as an invalid power of attorney. Malaysia applies deferred indefeasibility, so titles obtained by defective instruments remain defeasible until transferred to a bona fide purchaser.
Terms can be implied in a contract in three ways: by custom or trade usage, by law, or by courts.
For a term to be implied by custom or trade usage, it must be reasonable, certain, and notorious within the relevant industry. The custom cannot contradict the express terms of the contract. Terms may also be implied by law through common law precedents or statutes that apply to certain types of contracts.
Courts use the business efficacy and officious bystander tests to determine if a term should be implied. Under business efficacy, a term will be implied if it is necessary to make the transaction effective. The officious bystander test considers whether the term is so obvious that both parties would
Land Law II notes - For Revision Purposes OnlyAzrin Hafiz
This document summarizes 11 land law cases related to jual janji (conditional sale) transactions and lien cases in Malaysia. It provides brief summaries of the facts and outcomes of each case. The cases cover topics such as whether a transaction constituted a jual janji or outright sale, the right to redeem land after the agreed repayment period has expired, and priority of claims when charges or liens on land are involved.
Ramadhan is seeking to invoke Order 1A of the Rules of Court 2012 to remedy irregularities in his application against Syawal. Order 1A allows courts to consider justice over technical non-compliance. However, the document analyzes several cases that have found Order 1A cannot be used to override mandatory rules or cure intentional non-compliance. As Ramadhan failed to comply with the mandatory prerequisites in Order 6 Rule 7(2A) for renewing his writ, it is unlikely the court would allow him to invoke Order 1A in this case.
A lien is a right to retain possession of property belonging to another person as security for payment of a debt. A lien is created in two stages: first, the proprietor or lessee deposits the land title or duplicate lease with a lender as security for a loan, creating an equitable lien. Second, the lender enters a lien-holder's caveat on the land title at the land office, creating a statutory lien. Key requirements for a valid lien are that the registered proprietor deposits the title with intent to secure a loan. While express consent is not needed to lodge a caveat, fraud in the creation of security can be an issue. A lien provides a speedy way for businessmen to raise money compared
Law of Duress in Malaysia and United KingdomASMAH CHE WAN
This document discusses the defense of duress in criminal law in Malaysia, the UK, and Singapore. It begins by defining duress as a defense that excuses criminal liability if the accused committed a crime due to threats that reasonably caused fear of instant death. It then examines the key elements of duress according to Malaysian law, including that the threat must be directed at the accused, involve fear of instant death, and require the physical presence of the coercer. The document also analyzes relevant case law and compares how duress is treated in common law versus under the Malaysian Penal Code.
This document outlines the factors a judge must consider when deciding whether to grant an interlocutory injunction. The judge must first determine if there is a serious issue to be tried by examining the pleadings and issues raised, without making a determination on the merits. Second, the judge must consider where the interests of justice lie by weighing the harm of granting or refusing the injunction, the parties' financial standing, and the ability of the plaintiff to pay damages if the suit fails. Finally, the remedy of an injunction is discretionary and intended to preserve the status quo until trial, so it should not be granted if damages are adequate.
Included topics:
- Betrothal
- Marriage
- Dissolution
- Ancillary claims
- Parent and children
- Adoption
- Legitimacy
- Inheritance
Not included:
- Introduction to the Administration of Islamic law in Malaysia
- Polygamous marriage
CASE REVIEW: PUBLIC PROSECUTOR v TEO ENG CHAN & ORSASMAH CHE WAN
1. The four accused were charged with raping a 16-year-old girl ("Kay") in a deserted quarry. They admitted to having sex with her but claimed she consented.
2. Kay said she did not consent and was threatened by the men. She cried and screamed in pain during the acts. The next day she reported the incident to a doctor.
3. The court found Teo, Sim, and Ng guilty of rape under Section 376(2) of using threats and fear. Yap was found guilty of simple rape under Section 376(1) for lack of consent. The judgment was agreed with for thoroughly examining the issues.
Alia paid Sofini RM 100 for a Gucci bag on 2.3.2000 with the agreement that Sofini would deliver it on 2.7.2000. However, Sofini sold the bag to someone else on 3.7.2000. Alia is seeking legal advice about getting the specific performance of the contract, which is a court order directing Sofini to hand over the bag as agreed. Specific performance is an equitable remedy that may be granted at the court's discretion if monetary damages are not adequate relief for breach of contract.
Discovery and interrogatories allow parties to obtain relevant information from opponents to assess their cases. Discovery concerns obtaining documents, while interrogatories involve answering questions under oath. The court has discretion to order discovery and interrogatories if necessary for fair case disposal or cost savings. Privileged documents like legal advice are exempt from discovery. Parties have duties to conduct thorough searches and provide full, truthful answers throughout proceedings. Non-compliance can result in sanctions like dismissing claims or defenses.
Learning Outcome: After completion of this lesson, students will be able to -
1) identify and distinguish between conditions and warranties
2) learn about implied conditions and implied warranties available under Sale of Goods Act
3) determine when ownership of a property passes during a sale
The document discusses key concepts relating to contracts of sale under the Sale of Goods Act 1957 in Malaysia. It covers definitions of a contract of sale, essential elements for a valid contract, implied terms and conditions in contracts of sale, and remedies for breach of conditions/warranties. Some key points summarized:
1) A contract of sale involves the transfer of ownership of goods from a seller to a buyer for a price. It requires offer, acceptance, consideration and intention to be bound.
2) Implied terms include the seller having title to sell the goods, goods being of merchantable quality and fit for the buyer's known purpose, and corresponding to any description or sample provided.
3)
This document summarizes equitable remedies available under equity law, including injunctions and specific performance. It discusses the circumstances in which these remedies may be granted or refused by courts. Equitable remedies are designed to supplement common law remedies and are granted at the court's discretion to redress wrongs. Specific performance allows a court to order a party to carry out contractual obligations, while injunctions can be prohibitory (to refrain from an act) or mandatory (to perform an act). Courts will consider factors like adequacy of damages, claimant's conduct, readiness to perform contractual obligations, and delay or acquiescence when deciding whether to grant equitable remedies.
This is a comparative study on the concept of illegally obtained evidence between Malaysia, United Kingdom, United States of America and the concept from Islamic Perspective.
This document discusses the legal principles of occupier's liability in tort law. It begins by defining key terms like "occupier" and explaining that occupier's liability concerns the duty owed by those in control of premises to prevent injuries to visitors from defects in the static state of the premises.
It then examines cases that establish the legal tests for determining who qualifies as an occupier, such as those with control or the legal right to possession. The document also categorizes different types of visitors and outlines the varying duties of care occupiers owe to contractual visitors, invitees, licensees, and trespassers from highest to lowest. Finally, it provides examples of how these principles have been applied regarding what constitutes an
This document provides an overview of the topic of sale of goods under commercial law. It begins by outlining the key aspects that will be discussed, including the formation of a sale of goods contract, transfer of title, warranties, and remedies for buyers and sellers. Various terms related to sale of goods are defined. The reading then examines the elements of a valid sale of goods contract and what constitutes "goods". It discusses how ownership and possession are transferred, along with implied terms regarding quality, description, and sale by sample. Finally, the document reviews remedies available to sellers who still possess the goods, sellers who do not, and remedies buyers have for breach of warranties or non-delivery.
Civil Family Law - Promise to Marry (Betrothal)Azrin Hafiz
This document discusses the law around betrothal or a promise to marry in Malaysia. It defines betrothal as an agreement to marry between two parties. For a betrothal contract to be valid, there must be an offer and acceptance, consideration in the form of consent to marry, and the parties must have the capacity to marry. The document outlines the requirements for capacity including that the parties must be single, of age, not within a prohibited degree of relationship, and of religions that do not prevent marriage. It discusses exceptions and cases related to these requirements. The document also examines what constitutes a breach of contract if the betrothal is valid and potential defenses a defendant could raise. Finally, it lists the available remedies if
Samy and Kutu, both aged 11, are charged with attempted theft of a motorcycle. They can claim the defense of infancy under Section 83 of the Penal Code if they are found to lack sufficient maturity and understanding of their actions. However, evidence that they skillfully cut the lock with a tool and fled from police suggests they understood the wrongful and prohibited nature of their conduct, meaning Section 83 defense would not apply in this case.
A private caveat is an interim procedure that allows a person claiming a title or registrable interest in land to freeze the land title registration until their claim can be resolved. A private caveat is entered by the Registrar upon application showing the claimant's caveatable interest. It has the effect of prohibiting any dealings with the land, including transfers or mortgages, except with the caveator's consent. To enter a caveat, the claimant must have a potential legal claim to the land, such as under a contract of sale, gift, or trust, that could ultimately result in registration of their interest.
This document discusses exceptions to indefeasibility of title under Malaysian land law. It outlines the main exceptions in Section 340(2) of fraud, forgery, and defective instruments. It provides details on the elements required to prove fraud, including that the registered proprietor must be party or privy to the fraud with intention to cheat. Forgery relates to the instrument of transfer being invalid rather than the parties' acts. Case examples are discussed regarding fraud, forgery, and defective instruments such as an invalid power of attorney. Malaysia applies deferred indefeasibility, so titles obtained by defective instruments remain defeasible until transferred to a bona fide purchaser.
Terms can be implied in a contract in three ways: by custom or trade usage, by law, or by courts.
For a term to be implied by custom or trade usage, it must be reasonable, certain, and notorious within the relevant industry. The custom cannot contradict the express terms of the contract. Terms may also be implied by law through common law precedents or statutes that apply to certain types of contracts.
Courts use the business efficacy and officious bystander tests to determine if a term should be implied. Under business efficacy, a term will be implied if it is necessary to make the transaction effective. The officious bystander test considers whether the term is so obvious that both parties would
Land Law II notes - For Revision Purposes OnlyAzrin Hafiz
This document summarizes 11 land law cases related to jual janji (conditional sale) transactions and lien cases in Malaysia. It provides brief summaries of the facts and outcomes of each case. The cases cover topics such as whether a transaction constituted a jual janji or outright sale, the right to redeem land after the agreed repayment period has expired, and priority of claims when charges or liens on land are involved.
Ramadhan is seeking to invoke Order 1A of the Rules of Court 2012 to remedy irregularities in his application against Syawal. Order 1A allows courts to consider justice over technical non-compliance. However, the document analyzes several cases that have found Order 1A cannot be used to override mandatory rules or cure intentional non-compliance. As Ramadhan failed to comply with the mandatory prerequisites in Order 6 Rule 7(2A) for renewing his writ, it is unlikely the court would allow him to invoke Order 1A in this case.
A lien is a right to retain possession of property belonging to another person as security for payment of a debt. A lien is created in two stages: first, the proprietor or lessee deposits the land title or duplicate lease with a lender as security for a loan, creating an equitable lien. Second, the lender enters a lien-holder's caveat on the land title at the land office, creating a statutory lien. Key requirements for a valid lien are that the registered proprietor deposits the title with intent to secure a loan. While express consent is not needed to lodge a caveat, fraud in the creation of security can be an issue. A lien provides a speedy way for businessmen to raise money compared
Law of Duress in Malaysia and United KingdomASMAH CHE WAN
This document discusses the defense of duress in criminal law in Malaysia, the UK, and Singapore. It begins by defining duress as a defense that excuses criminal liability if the accused committed a crime due to threats that reasonably caused fear of instant death. It then examines the key elements of duress according to Malaysian law, including that the threat must be directed at the accused, involve fear of instant death, and require the physical presence of the coercer. The document also analyzes relevant case law and compares how duress is treated in common law versus under the Malaysian Penal Code.
This document outlines the factors a judge must consider when deciding whether to grant an interlocutory injunction. The judge must first determine if there is a serious issue to be tried by examining the pleadings and issues raised, without making a determination on the merits. Second, the judge must consider where the interests of justice lie by weighing the harm of granting or refusing the injunction, the parties' financial standing, and the ability of the plaintiff to pay damages if the suit fails. Finally, the remedy of an injunction is discretionary and intended to preserve the status quo until trial, so it should not be granted if damages are adequate.
Included topics:
- Betrothal
- Marriage
- Dissolution
- Ancillary claims
- Parent and children
- Adoption
- Legitimacy
- Inheritance
Not included:
- Introduction to the Administration of Islamic law in Malaysia
- Polygamous marriage
CASE REVIEW: PUBLIC PROSECUTOR v TEO ENG CHAN & ORSASMAH CHE WAN
1. The four accused were charged with raping a 16-year-old girl ("Kay") in a deserted quarry. They admitted to having sex with her but claimed she consented.
2. Kay said she did not consent and was threatened by the men. She cried and screamed in pain during the acts. The next day she reported the incident to a doctor.
3. The court found Teo, Sim, and Ng guilty of rape under Section 376(2) of using threats and fear. Yap was found guilty of simple rape under Section 376(1) for lack of consent. The judgment was agreed with for thoroughly examining the issues.
Alia paid Sofini RM 100 for a Gucci bag on 2.3.2000 with the agreement that Sofini would deliver it on 2.7.2000. However, Sofini sold the bag to someone else on 3.7.2000. Alia is seeking legal advice about getting the specific performance of the contract, which is a court order directing Sofini to hand over the bag as agreed. Specific performance is an equitable remedy that may be granted at the court's discretion if monetary damages are not adequate relief for breach of contract.
Discovery and interrogatories allow parties to obtain relevant information from opponents to assess their cases. Discovery concerns obtaining documents, while interrogatories involve answering questions under oath. The court has discretion to order discovery and interrogatories if necessary for fair case disposal or cost savings. Privileged documents like legal advice are exempt from discovery. Parties have duties to conduct thorough searches and provide full, truthful answers throughout proceedings. Non-compliance can result in sanctions like dismissing claims or defenses.
Learning Outcome: After completion of this lesson, students will be able to -
1) identify and distinguish between conditions and warranties
2) learn about implied conditions and implied warranties available under Sale of Goods Act
3) determine when ownership of a property passes during a sale
The document discusses key concepts relating to contracts of sale under the Sale of Goods Act 1957 in Malaysia. It covers definitions of a contract of sale, essential elements for a valid contract, implied terms and conditions in contracts of sale, and remedies for breach of conditions/warranties. Some key points summarized:
1) A contract of sale involves the transfer of ownership of goods from a seller to a buyer for a price. It requires offer, acceptance, consideration and intention to be bound.
2) Implied terms include the seller having title to sell the goods, goods being of merchantable quality and fit for the buyer's known purpose, and corresponding to any description or sample provided.
3)
This document discusses key concepts related to the Sale of Goods Act in India. It covers the classification of goods into existing goods (specific, ascertained, unascertained), future goods, and contingent goods. It then explains the effect of perishability on specific goods, whether the goods perish before or after an agreement to sell. Specifically, if the goods perish before the contract is made, the contract is void, and if they perish after agreement but before risk passes to the buyer, the agreement is avoided. The document also covers stipulations as to time, distinguishing between stipulations for payment of price (not usually essential) and delivery of goods (usually essential).
The document summarizes key aspects of contracts for the sale of goods under the Sale of Goods Act 1930 in India.
It defines a contract of sale of goods as one where the seller transfers ownership of goods to the buyer for a price. It also discusses essential elements, types of goods, implied conditions regarding title, description, merchantability and fitness for a particular purpose. Breach of a condition allows the buyer to reject the goods, while breach of a warranty only permits damages. The document outlines the differences between conditions and warranties.
The document provides definitions and explanations of key concepts in Malaysia's Sales of Goods Act 1967. It discusses what constitutes goods, the different types of goods, and how contracts of sale are formed. It also covers important implied conditions and warranties in contracts of sale, including title to goods, correspondence with descriptions, quality and fitness, merchantability, and sale by sample. The document explains when property or ownership is transferred from the seller to the buyer and exceptions to the general rule of nemo dat quod non habet (no one can transfer better title than they have). Finally, it discusses the performance of contracts of sale through delivery and acceptance of goods, as well as remedies available to buyers and sellers for breaches of contract.
This document discusses the key differences between conditions and warranties in contracts of sale under business law. It defines conditions as essential stipulations whose breach allows the non-breaching party to terminate the contract. Warranties are collateral stipulations whose breach only allows a claim for damages and not termination. The document provides examples and outlines implied conditions like title, description, sample, quality or fitness. It also discusses implied warranties and exceptions to the doctrine of caveat emptor (let the buyer beware). In summary, the document analyzes the contractual terms of conditions and warranties and how they impact rights and remedies in cases of breach.
The document discusses key concepts from the Sales of Goods Act including:
- A contract of sale involves the transfer of ownership of goods from a seller to a buyer for a price. It can be a sale (immediate transfer of ownership) or agreement to sell (future transfer).
- Essentials of a valid contract of sale include two parties, goods as the subject matter, transfer of general property interest in the goods, and consideration in the form of money price.
- Goods can be existing, future, or contingent. Price must be in monetary terms but does not need to be fixed at the time of sale.
- Key rights and obligations depending on whether a sale or agreement to sell include risk
This document discusses key aspects of the law relating to the sale of goods in Sri Lanka. It covers:
1) The elements and formalities required for a valid sale of goods contract, including a seller, buyer, goods, consideration (price), and transfer of property.
2) Implied terms in sale of goods contracts such as conditions regarding title, description, sample, and merchantable quality. Breach of conditions allows rejection while breach of warranties only allows damages.
3) Remedies available to buyers and sellers for breach of contract, including rejection of goods and claims for damages.
The document discusses key concepts from the Sale of Goods Act 1930 related to contracts of sale. It defines a contract of sale as an agreement whereby the seller transfers ownership of goods to the buyer for a price. A contract of sale can be made verbally, in writing, or partly both. It also distinguishes between a sale, where ownership transfers immediately, and an agreement to sell, where ownership will transfer in the future. The document outlines implied conditions related to title, description, quality/fitness, merchantability, and more.
The document discusses key concepts relating to contracts of sale under the Sale of Goods Act 1930 in India. It defines a contract of sale as involving the transfer of property in goods from a seller to a buyer for a price. A sale transfers ownership immediately, while an agreement to sell involves future transfer. It also outlines essential elements like goods, price, parties. Modes of fixing price are discussed, including those set by parties, an agreed manner, course of dealings, or a reasonable price. Risks in cases of goods destruction prior to or after an agreement are explained.
This document discusses key concepts from Chapter 4 of the Sale of Goods Act 1930. It begins by defining a contract of sale and outlining its essential elements. It distinguishes between a sale, where ownership transfers immediately, and an agreement to sell, where ownership transfers at a future date. It defines goods and documents of title to goods. It discusses classification of goods, the importance of price, and the distinction between conditions and warranties in a contract of sale.
This document summarizes key aspects of the Sale of Goods Act 1957 regarding contracts of sale, goods, formation of contracts, terms of contracts, transfer of title, and remedies for sellers and buyers. Specifically, it discusses implied terms for time of delivery, title, quiet possession, correspondence to description, fitness for purpose, and merchantable quality. It also outlines rights and remedies such as liens, stoppage in transit, resale, damages, and specific performance.
Dr SHIKHA AGARWAL CONTRACT OF SALE --BBA-IB.pdfyelaf54427
This document provides an overview of the Sale of Goods Act 1930 in India. It discusses key concepts around contracts of sale including the essential elements, differences between sale and agreement to sell, goods, price, conditions and warranties, and transfer of ownership. Specifically, it defines a contract of sale under section 4(1) as involving the transfer of property in goods from the seller to the buyer for a price. It also explains the different types of goods, implications of destruction or damage of goods, methods of determining price, and the distinction between conditions and warranties.
Introduction
Definition of contract of sale
Essential elements of contract of sale
Formalities of contract of sale
Sale & Agreement to sell
Difference between sale & agreement to sale
Goods and their classification
Price
Condition & warranties
Unpaid seller
Rights of unpaid seller
The document discusses the key aspects of a contract of sale under Indian law. It begins by defining a contract of sale and differentiating between a sale and an agreement to sell. It then covers the essential elements of a valid contract of sale, implied conditions and warranties, caveat emptor, and how the transfer of property occurs. Specifically, it examines how property is transferred for unascertained goods, specific goods, and goods sold on approval. The document provides a comprehensive overview of contract of sale with examples to illustrate important legal concepts.
This document provides an introduction and overview of key concepts relating to the sale of goods in Sri Lanka. It discusses the following main points in 3 paragraphs:
1. It defines a sale of goods contract and outlines the 4 key elements required - a seller, buyer, goods, and consideration (price). It also distinguishes between existing, future, and ascertained/unascertained goods.
2. It discusses the terms that can be included in a sale of goods contract, including express terms agreed by the parties and implied terms that are automatically included by law. It defines conditions and warranties.
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The document summarizes key aspects of the Sale of Goods Act 1930 in India. It defines a contract of sale, outlines essential elements like parties, agreement to transfer goods, consideration in the form of price, and defines sale vs agreement to sell. It also defines goods, distinguishes conditions from warranties, discusses passage of title and exceptions to the caveat emptor rule. In summary:
1) The Sale of Goods Act governs contracts for sale of movable property and defines a sale as transfer of property from seller to buyer for a price.
2) Essential elements of a sale include at least two parties, agreement to transfer ownership of goods, goods as the subject matter, and price as consideration.
3
This document summarizes key aspects of the Sale of Goods Act 1930 in India. It defines a contract for sale of goods and outlines essential elements like two parties, goods as the subject matter, price, and agreement to transfer ownership. A distinction is made between a sale, which immediately transfers property, and an agreement to sell, which transfers property at a future date. Conditions and warranties are defined, with conditions being essential to the main purpose and warranties being collateral. Breach of a condition allows contract repudiation while breach of a warranty only allows damages. Exceptions are noted where a breach of condition is treated as a breach of warranty.
This document summarizes key aspects of the Sale of Goods Act 1930 in India. It defines a contract for sale of goods and outlines essential elements like two parties, goods as the subject matter, price, and agreement to transfer ownership. A distinction is made between a sale, which immediately transfers property, and an agreement to sell, which transfers property at a future date. Goods are classified as existing, future, or contingent. A breach of condition allows repudiation of the contract while a breach of warranty only allows damages claims. Acceptance of goods usually treats a condition breach as a warranty breach.
An agency relationship arises when a principal appoints an agent to act on their behalf in dealing with third parties. There are two types of contracts involved - between the agent and principal, and between the principal and third party arranged by the agent. An agent's authority can be actual, apparent, or by necessity. An agency terminates upon completion of the task, lapse of time, or notice of termination by either principal or agent.
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- Impossibility: When performance becomes impossible or unlawful due to unforeseen circumstances, frustrating the contract.
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This document provides an overview of contract law and the key elements of a contract according to Malaysian law. It discusses what a contract is, the definition of a proposal and acceptance, the characteristics of a proposal and acceptance, and distinguishes a proposal from an invitation to treat and a counteroffer. Specifically:
1. A contract is a legally binding agreement between two or more parties where they agree to perform or avoid certain acts. The key elements of a valid contract include offer, acceptance, consideration, intention to create legal relations, capacity, certainty and free consent.
2. A proposal is a statement indicating a party's willingness to enter a contract on certain terms, leaving the option of acceptance to the other party. Accept
The document discusses the legal concept of consideration in contracts. It begins by defining consideration according to Section 2(d) of the Contracts Act 1950 as something done or promised in exchange for the promise of another. Consideration must involve an exchange between both parties.
It then provides examples of different types of consideration: executory consideration involves a promise in exchange for a promise; executed consideration involves a promise in exchange for an act; and past consideration involves a promise made in return for an act already performed. The document analyzes several cases related to consideration. Finally, it discusses exceptions to the general rule that an agreement made without consideration is void.
This document discusses legal provisions related to local government reforms in Malaysia. It covers the main laws governing local authorities, including the Local Government Act 1976 (Act 171), the Town and Country Planning Act 1976 (Act 172), and the Street, Drainage and Building Act 1974 (Act 133). It also discusses local ordinances governing local authorities in Sabah and Sarawak. The document defines by-laws and outlines the principles for making them. It examines the provisions regarding by-laws in the various Acts and ordinances. Finally, it discusses some of the challenges in enforcing by-laws, such as lack of public support, insufficient enforcement staff, outdated by-laws, and safety issues for enforcement officers.
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Corporate Governance : Scope and Legal Frameworkdevaki57
CORPORATE GOVERNANCE
MEANING
Corporate Governance refers to the way in which companies are governed and to what purpose. It identifies who has power and accountability, and who makes decisions. It is, in essence, a toolkit that enables management and the board to deal more effectively with the challenges of running a company.
2. 1. LAW
APPLICABLE
Sales of Goods Act
1957 (Revised 1989)
2. CONTRACT
OF SALE
Sec 4(1) - A contract of SOG is a
contract
whereby the seller transfer or
agrees to
transfer the property in goods to
the buyer for a price.
There are two types of contract of sale
which is :
S 4(2) – a sale is an absolute
contract
S 4(3) – in sale, title passes to
the buyer at the time of
contract
S 4(2) – an agreement to sell is a conditional
contract
S 4(3) – in an agreement to sell, title
passes:
a) at some future time
b) subjects to some condition to
be fulfilled later
S 4(4) – an agreement to sell becomes a sale
when:
a) the time elapses
b) the conditions are fulfilled
Sale
Agreement to
sell
2
3. 3. NATURE &
FORMATION
OF CONTRACT
FOR SALE OF
GOODS
Parties to
the contract
Goods – the
subject
matter of
the contract
Consideration
Formation
Formalities
Capacity
3
4. Seller Buyer
3.1 Parties
to the
contract
3.2 Goods – the subject
matter of the contract
1. all form of moveable
property
2. stocks & shares
3. growing crops
4. grass
5. things attached to the
lands( fixture)
6. things forming part of
the lands(which are
agreed to be severed
before sale or under a
cont of sale)
Goods include: Goods not include:
1. Land( houses and
building)
2. Money( of any currency
being used as a legal
tender)
3. actionable claim( right to
sue another person for a
debt)
4. cheques
CASE: MOSS V HANCOCK
a gold coin, which was sold as a curio piece & not as a
currency, is regarded as goods.
4
5. Existing Goods – S2
• goods already own & possessed by the seller
• may be specific or unascertained
Specific Goods – S2
• goods identified & agreed upon at the time a contract of the sale is
made
Unascertained Goods
• goods identified by description only
• e.g. 500 tons of wheat
Future Goods – S2
• goods to be manufactured or acquired by the seller after the making of
the cont of sale
• e.g. - a ship to be built by a seller to a specification
3.2.1 Category of Goods – S 6(1)
5
6. • the consideration for the SOG is called ‘the price’
• therefore there must be an exchange between goods
and money
• S.2 – def of price – money consideration
• * cont of barter not a cont of sale.
3.3 Consideration
• a cont of sale is made by an offer to buy or sell
goods for a price & the acceptance of such offer
• the cont may provide for immediate delivery of the
goods or immediate payment of the price or both
• delivery or payment may even be made at a future
date.
3.4 Formation – S 5(1)
• under SGA, no special formalities required
• a cont of sale may be made either: in writing, orally,
partly in writing & partly orally or implied from the
conduct of the parties.
3.5 Formalities
• no specific provision
• govern by cont act
3.6 Capacity
6
7. The terms of the contract of SOG are
classified into two : condition and
warranty
Whether the terms are conditions or
warranties depends on the construction
of the contract which has been made
4.
TERMS
OF
CONTRACT
Condition
Warranty
A TERM ESSENTIAL TO
THE CONTRACT
S.12(2): a condition is a
stipulation essential to the main
purpose of the contract.
Where the seller is in breach of
condition, the buyer’s right are:
• to terminate the contract,
• to reject the goods and
• to claim for damages.
LESS VITAL TERM OF A
CONTRACT
S.12(2): a warranty is a
stipulation collateral to the main
purpose of the contract
the breach of which gives rise
to a claim for damages but not a
right to reject the goods and to
right to treat the contract as
repudiated.
7
8. Implied term as to title:s.S.14(a)
Implied warranty as to Quiet
Posession:S.14(b)
Implied warranty that the Goods are
Free from any Encumbrances:S.14(c)
Implied condition that the Goods shall
Correspond with Description:S.15
Implied condition as to Fitness for a
Particular Purpose:S.16(1)(a)
5. IMPLIED TERMS
SOGA provides 7 implied terms ( conditions and warranties) in a
contract of sale:
8
9. 6. IMPLIED TERM/CONDITION TO TITLE:s.14(a)
S 14(a): Right to sell the goods
in a case of sale, it is implied that the seller has a right to sell the goods.
in an agreement to sell, the seller has a right to sell the goods at the time
the property is to pass
the effect if the seller has no right to sell the goods:
he cannot pass a good title to the buyer
he is in breach of condition in S 14(a)
the buyer’s right are:
I. to cancel the contract
II. to claim for the refund of the money paid
CASE: ROWLAND V DUVALL
R bought a car & used it for 4 months when he discovered that it was
stolen. The car was return to the true owner. R claimed a refund from D.
Held: D (seller) had breached condition as to title. R was allowed to recover
full price.
Stolen car
9
10. Section 14(b) SOGA (quite possession)
Buyer shall have enjoy quiet possession of the goods unless specified
otherwise.
Exception in the case where title is defective and subsequent failure
disturbance of possession of the goods.
The purpose of this is to cover the buyer rights against wrongful
interference by a stranger claiming a lawful right by virtue of a better title
than the seller as well as the wrongful act of the seller himself.
Eg- A sold his car to B. A sometimes persuaded B to allow him to use the car. A had
spare key and sometimes used the car regardless whether B needed the car or not. A
= breached the Implied warranty (B did not have Quiet Possession ).
CASE: HENG LONG MOTOR TRADING CO v OSMAN BIN ABDULLAH
[1994] 2 MLJ 456, Respondent brought a van from appellant worth
RM13,500 in 1983. However, the van was seized by the Custom in 13th May
1983 because it was material evidence in an investigation. Court held that
the implied warranty of quite enjoyment is not fulfilled. Therefore, the
Plaintiff were entitled to damages for breach of implied warranty.
10
11. ikhwannaguib@uitm.edu.my
11
S.14 (c) SOGA– goods are free from encumbrance
Goods must be free from any charge or
encumbrance at the time when the contract is
made in favor of any third party not declared or
known to the buyer
When the goods transferred , it must be a free
title i.e no one can claim it is under a charge or the
goods are attached to some legal obligations
Case: STEINKE V EDWARD [1935] 8 ALJ 386, the
plaintiff who had bought a car from the defendant
had to pay off the tax which was still owing to the
government. The plaintiff sought to recover the
amount he has paid for the tax from
defendant(seller). It was held by the court that
the plaintiff was entitled to recover the money as
the defendant had breached the implied warranty.
12. 7. IMPLIED CONDITION THAT GOODS CORRESPOND
WITH DESCRIPTION: S.15
where the purchaser has not seen the goods but relying on description alone- sale of
unascertained goods.
Specific goods only apply where the buyer has not seen the goods such as mail
orders & sale from a catalogue
e.g. sale in a self service shop where the goods are selected & examined- describe
either on the label or packaging.
NAGURDAS PURSHOTUMDAS & CO v MITSUI BUSSAN KAISHA LTD.
Under previous contracts between the parties for the sale of flour, the flour had been
sold in bags bearing a well known trademark. Subsequently, the flour was ordered ‘the
same as the previous contract‘. Flour of the same quality was delivered but it did not
bear the same well-known trademark. The court HELD the goods did not comply with
the description.
CASE: BEALE V TAYLOR
The buyer discover that the car was a mixture of a 1961 model and the earlier model. HELD : in the
case of sale by description, the buyer was entitled to damaged for breach of an implied condition
relating to the sale by description where the car did not correspond with the description.
12
13. 8. IMPLIED CONDITION AS TO FITNESS FOR A PARTICULAR
PURPOSE: S.16(1)(a)
General rule: The buyer is expected to exercise care in making purchases. This rule is
known as Caveat Emptor (let the buyer beware) Buyer must exercise care in making
purchases, if he does not, he must bear the consequences. The seller will not be liable
if the goods is not fit or does not have the quality as required by the buyer.
However,S16(1)(a) provides some Exception to the caveat emptor general rule. S.16
(1) (a) provides that there is an implied condition that the goods must be reasonably
fit for a particular purpose of the buyer
If the goods are not fit for the particular purpose of the buyer, the seller would be
liable for breach of this condition and the buyer is entitled to claim for damages
and/or rescind the contract.
Under this section there are 4 conditions to be fulfilled:
i. Disclosure of purpose
ii. Reliance on the seller’s skill and judgement
iii. The goods supplied are of the description which it is in the course of the seller’s
business to supply
iv. If the goods are specific, they must not be bought under the patent or trade name.
13
14. the buyer must make known either expressly or impliedly to the seller at or
before the time when the contract is made the particular purpose for which
the goods are required.
CASE: GRIFFITHS V PETER CONWAY LTD
A woman with an unusually sensitive skin who bought a
Harris Tweed coat without disclosing her sensitivity to the
seller, did not succeed in her claim against the seller for
breach of implied condition as to fitness for a particular
purpose because the coat would not harm a normal person.
However if the description of the goods show that it has only one purpose, no
disclosure is required. It is implied that the goods is fit for that particular
purpose. E.g If A buys a loaf of bread which contains a stone on which he
breaks a tooth on eating, is there a breach of implied condition that the bread
if fit for the purpose i.e. to be eaten ?
CASE:PRIEST V LAST
The Plaintiff purchased a hot water bottle from the defendant, a retail
chemist.Some days later, the bottle,while in use by the P’s wife burst.As a
result,she was scalded and the P sued the D. HELD: the description of the
goods by which they were sold pointed to one particular purpose only,then the
requirement of disclosure of purpose is fulfilled.
i. Disclosure of
purpose
14
15. The buyer must establish that he had relied on the seller’s skill &
judgment before purchasing the goods
CASE: GRANT V AUSTRALIAN KNITTING MILLS
The court held that reliance usually arises by implication from the
circumstances. For instance, of a purchase from a retailer, the reliance will
be inferred from the fact that a buyer goes to the shop in the confidence
that the seller has selected his stock with skill and judgment.(underpants
contained excessive sulphites which caused dermatitis to the buyer)
CAMMELL LAIRD & COMPANY V MANGANESE BRONZE & BRASS CO
LTD
A contract to build a propeller in accordance with the specification and
design and to fit a particular ship and its engine. However the details as to
the thickness of the blades were left to the S’s skill and judgment. The
propeller supplied complied with the specification but did not suit the ship
engine. The court held that S was liable for breach of implied condition
because the B had informed the S of the purpose for which he needed the
propeller & relied on the S’s skill and judgment.
ii. Reliance on the seller’s skill and
judgment
15
16. CASE: SPENCER TRADING CO LTD v DEVON
The manufacturer had previously supplied to the Plaintiff on a special order, an
adhesive substance made from gum resin for making flypapers. The following
year, the P’ ordered a further supply for the same purpose from the
manufacturer, who on occasion used synthetic raw materials in place of the
natural material previously used. Consequently, the flypapers were unsatisfactory
for its purpose. HELD: the goods are of the description which is in the course of
the seller’s business to supply. Therefore the manufacturer was liable for breach
of implied condition that the goods were fit for the purpose for which they were
required.
CASE:ASHINGTON PIGGERIES LTD v CHRISTOPHER HILL LTD
The seller was the manufacturer & dealer of the animal feed. It had never made
feed for drink. This was made clear to the B but the seller however agreed to
make up such a compound from a formula provided by the B. The compound
produced was not fit for the mink. The issue was whether the compound was of
the description which was in the course of the seller’s bss to supply. HELD: the
product was a feeding compound. Although the seller has never supplied
iii. The goods supplied are of the description which it is
in the course of the seller’s business to supply
iv. The goods were not bought under particular
patent or trade name
If the buyer asks for specific goods under a patent or trade name with
the impression that he is not relying on the sellers skill or judgment, he
cannot later complain if the goods bought are not for the purpose which
he requires them.
16
17. But if the buyer purchases the goods under a trade name and relying on the
seller’s skill or judgment, this means that the buyer is relying on the seller’s
skill or judgment
In Baldry v Marshall, a contract for the sale of a Bugatti car was entered
into between the buyer and the dealer as a result of the dealer’s
recommendation that the car was suitable for touring. However it was found
that the car was unsuitable for touring. It was held that the dealer was
liable for breach of contract because the buyer had relied on the dealer’s
judgment in the selection of a car suitable to the buyer’s stated purpose
even if it was sold under a trade name.
In Frost v. Aylesbury Dairy Co. Ltd [1905] The defendant in this case is
a milk dealer where he supplied milk contained germs of typhoid fever.
Plaintiff’s wife died due to the infection. Court held that it was an implied
condition that the milk must be reasonably fit for consumption
17
18. 9. IMPLIED CONDITION AS TO MERCHANTABLE QUALITY-
S.16(1) (b)
need not have made known to the seller, the particular purpose for which
the goods are required so long as they are bought:
i. by description
ii. from a seller who deals in goods of that description
iii. exclude private sale
iv. include sale under patent or trade name.
Facts: Mineral water was sold in the bottles. A defective bottle burst and injured
the buyer. It was an implied condition of the contract that the water and the bottle
supplied must be of merchantable quality. Court held that there is an implied
condition as to merchantable quality even though the goods were sold under patent
or trade name.
Fuel by its trade name ‘coalite’ was ordered from a fuel merchant, contaminated,
resulting in an explosion. Held: the consignment was unmerchantable, having
defects, making it unfit for burning. However, the requirement of implied condition
on merchantable quality does not apply where the buyer has examined the goods.
GEDDLING V MARSH
WILSON V RICKETT
18
19. 10. GOODS CORRESPOND WITH SAMPLE – S.17
usually used in the sale of bulk goods like rice, wheat or flour & in a household item
like tile, floor covering, carpets.
Condition:
a) the bulk shall correspond with the sample in quality – S 17(2) (a)
b) that the buyer shall have a reasonable opportunity of comparing the bulk with the
sample.
c) goods are free from any defect rendering them unmerchantable which would not be
apparent on reasonable examination of the sample –S 17(2)(c)
breach of any of the three conditions entitle the buyer to reject the goods &
terminate contract.
Facts: The cloth supplied by the seller was equal to samples previously examined.
However, there was a latent defect not discoverable by a reasonable examination.
Court held that the seller was held liable for breach of the subsection because
eventhough the bulk correspond with the sample. There was a latent defect rendering
the goods unmerchantable. The buyer was entitled to reject the goods.
CASE: DRUMMOND V. VAN INGEN
19
20. General Rule – Section 27 SOGA 1957
“ If goods were bought from a person who is not the owner and who sold
them without the owner’s authority, the buyer does not get any title”
Maxim Nemo Dat Quad Non Habet ( No one can transfer a better title
than he has himself”
Rationale is for the protection of the ownership of goods to be retained. In
the same time to protect the interest of true owner in the case goods are
stolen
Basically Section 27 explained or adopted nemo dat principle that is only a
person with title can transfer good title to another. A person with title
could be the owner or the authorised agent. Only sale by those persons can
transfer good title to another. Objective is to protect right of ownership .
Example, if the goods were stolen and sold to another party.
CASE : LIM CHU LAI V. ZENO LTD (1964)
Court held that at the time sale happened, the seller had no title to the
goods ( he was the bailee and not the owner). Therefore, he had no
authority to sell them. No title has passes as the title of the goods
remained with the owner.
20
22. • when the owner of the goods is by his
conduct precluded from denying the S
authority to sell i.e makes it appear to the
B that the person who sells the goods has
his authority to do so & the B acts in
reliance on it
• -the B who takes in good faith for value
will acquire a good title by estoppels.
ESTOPPEL –
S.27
• under the law of agency, an agent may pass a
good title in selling goods belonging to his P
provided he is acting the scope of his actual
authority.
• a person who sells his own goods is not not a
MA
• to be a MA, the person must in the customary
course of business as an agent usual authority
to sell goods or consign them for sale or by
them or raise money on their security
• e.g. broker, auctioner
SALE BY
MERCHANTILE
AGENT – S.27
22
23. • -goods may be jointly owned by several persons.
A sale by one of the owner not only of his share
but also that of the others may effectively
transfer title to a B not withstanding absence
of authority.
• -two conditions:
• a)one of the several joint owners has the sale
possession of the goods by permission of the
co-owners.
• b)the B acts in good faith & has not at the
time of the cont of sale notice that the S
lacks authority to sell.
SALE BY ONE OF
JOINT OWNERS
– S.28
• where the true owner transfer to the S
possession of the goods through fraud or
other factors that are voidable, the S may
pass a good title to a bona fide purchaser so
long as the cont has not been rescinded by
true owner at the time of the sale.
• refer S.19 & 20 of Contract Act 1965
(coercion, fraud, misrepresentation, undue
influence)
SALE UNDER A
VOIDABLE
TITLE – S.29
23
24. • a S who has parted with the title to the goods
but remains in possession of the goods or of
the doc of title can pass a good title to a bona
fide purchaser
• the 2nd B gets a good title, whereas the
original B loses it
• the 1st B has to pursue his remedy against the
S
SALE BY
SELLER IN
POSSESSION –
S.30 (1)
• a B having bought goods or agreed to
buy good, obtain possession of the
goods or d.o.t. with the consent of the S
can pass a good title to an innocent
disponee under any sale, pledge or
other disposition
• the B must obtain the goods or the
d.o.t. after the sale or agreement to buy
SALE BY BUYER
IN
POSSESSION –
S.30
24
25. CASE : NEWTONS OF WEMBLEY LTD V. WILLIAMS
Plaintiff sold the car to Y who paid by cheque and the
car was given to YY subject to an agreement that the
title to the car would not pass unless the cheque was
honoured. Cheque was dishonoured but YY had resold
the car to XX who bought it without knowing the real
situation. XX resold it to William. Plaintiff tired to
recover the car from him. Court held in this case that
YY , the original buyer was in possession of the car with
the consent of the owner. Therefore , he can pass good
title to XX, who in turn later transferred the car to
William.Thus, William was entitled to keep the car.
25
26. CASE : NEWTONS OF WEMBLEY LTD V. WILLIAMS
Plaintiff sold the car to Y who paid by
cheque and the car was given to YY
subject to an agreement that the title
to the car would not pass unless the
cheque was honoured.
. Cheque was dishonoured but YY had
resold the car to XX who bought it
without knowing the real situation. XX
resold it to William. Plaintiff tired to
recover the car from him.
Court held in this case that YY , the
original buyer was in possession of the
car with the consent of the owner.
Therefore , he can pass good title to
XX, who in turn later transferred the
car to William. Thus, William was
entitled to keep the car.
YEA
YEAAHHH!
The car is
MINE!!!
26
27. Breach done by the Buyer or the Seller. The other party who is not in breach (the
innocent party) is entitled to remedies.
BREACH BY THE BUYER
May occur as a result of the following:
i. Failure of the B to take delivery – S.44
If the seller is ready and willing to deliver the goods and requests buyer to take
delivery but the buyer does not within reasonable time take delivery upon the request,
the buyer will be liable to the seller for any loss occasioned by his neglect or refusal to
take delivery.
Buyer also responsible for additional charges for care and custody of the goods.
Seller must make delivery if the buyer is later willing to take delivery
ii. Failure of the B to accept and pay the goods – S.56
Deals with damages for non acceptance where the seller may sue the buyer for
damages for non acceptance if the buyer wrongfully neglects or refuses to accept and
pay for the goods.
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28. RIGHTSOF UNPAIDSELLER
Definition of UNPAID
SELLER-
Sec. 45 (SOGA)
b)when one condition on a bill of
exchange or other negotiable
instruments to which has been
received as a conditional payment has
not been fulfilled
• -includes agent of the SELLER
a)when the whole of
the price has not
been paid
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29. RIGHTSOF UNPAID
SELLER
Right to retain possession of the goods until payment or tender of
the price
Sec 46 (1) (a): where the property in the goods has passed to the
B but delivery has not been made.
Sec 46 (2) : if the property in the goods has passed to the B, the
S may with hold delivery
Sec 47 (1) –the right of lien arises where the goods sold without
stipulation as to credit OR Goods sold on credit but the period of
credit has expired OR the buyer becomes insolvent.
Sec 48- What if part delivery has been done? – The lien can be
done over the remaining goods
When lien is terminated? Sec.49- Seller delivers the goods to a
carrier or bailee to send it to buyer
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30. Section 50- Rights can be exercised in the case where the buyer
becomes insolvent and the seller has parted with possession.
The rights is exercised by taking actual possession of the goods OR
giving notice to carrier or bailee.
Section 50-the seller may resume possession of the goods as long
as they are in the course of transit and may retain them until
payment.
Section 51(1) – What is in the course of transit? From the time
when they are delivered to a carrier or bailee ( for the purpose of
delivering it to the buyer) and until the buyer/agent takes delivery
of them from the carrier or bailee
The transit is at an end if the buyer/agent takes delivery of the
goods either at the destination or before the arrival at the
destination.
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31. Section 54- The seller obtains possession of the goods where he has
exercised the right of lien and right of stopping the goods in transit.
Resell can be done if:
the goods are of a perishable nature – Section 54(2)
Notice to resell has been given to the original buyer and he fails to pay the
price within the time allocated – Section 54(2)
The seller reserved a right to resale in case of buyer’s default – Section
54(4)
What is the effects of resale?? – Section 54(3) stated that the 2nd buyer
will get a good title
OTHER RIGHTS
Seller may sue the buyer for the price if the title of the goods passed to
the buyer – Section 55 (1)
Section 56 deals with damages for non acceptance where the seller may
sue the buyer for damages for non acceptance if the buyer wrongfully
neglects or refuses to accept and pay for the goods.
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32. Section 57 – Deals with damages for non delivery of
goods when seller wrongfully neglects or refuses to
deliver goods to the buyer.
Measure of damages?? – Section 74 Contract Act
1950
Question of whether the goods are available in the
market- If No, then buyer entitled to loss of profits on
resale as the result of the seller’s non delivery
If the price has been prepaid by the buyer then he is
entitled to cover the price plus any other damages that
is legally obtainable.
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33. SPECIFIC PERFORMANCE – Section 58
Court may grant specific performance of contract for breach of
contract to deliver specific goods.
Nonetheless, if court grant SP , the seller cannot be given an option
to retain the goods on payment of damages.
LAW OF TORT
also gives remedies to buyer (for wrongful interference) – conversion
with the goods where the property in goods has passed to the buyer
and where his entitlement for delivery is being suspended.
SECTION 59
This section deals with treating breach of condition as breach of
warranty.
Therefore, the buyer may sue for damages on account of breach of
warranty if they elect to treat the breach of condition as breach of
warranty.
Buyer may even sue for further damages that is damages not taken
into account in assessing the extent of the reduction in price in the
first action.
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