Main Provisions of Sale of Goods Act 1979

1. S.12: Implied Terms as to Title

S.12[1] is applicable to all contracts for sale of goods. It covers private sales as well as goods which have been purchased in course of business.
 S.12(1)[2] implies a condition that the seller has a right to sell the goods. This is applicable to situations where the seller may be selling stolen goods.
A buyer who treats the contract as nullified is entitled to refund of full purchase price even if he has enjoyed the use of goods for sometime.

Case Law: Rowland v. Divall (1923)[3].
 The claimant was a car dealer. He brought a car from the defendant for £ 334. He made repairs to the car, painted it and sold it to another person for £ 400. After two months, the car was seized by the Police, who said that it was a stolen car. The Police, restored it to the original owner.
The claimant refunded £ 400 to the buyer and then brought a claim against the defendant under the Sale of Goods Act[4].

It was held that the defendant had no right of sale since a thief who sold the car to him did not have a good title. The defendant had to return the amount. Even though he used the car for two months he did not have to pay for it and the claimant who spent for its repair was not to be compensated.

S.12 (2) (a)[5]implies a term that there is no undisclosed encumbrance charge. This arises in the case of goods , which might have been still under hire purchase (hp) agreement or might have some other debt availed against them, but the same might not have been disclosed to the buyer. This is a type of warranty only. So while the buyer cannot end the contract, he can claim damages for any loss.
Case Law: Microbeads v. Vinehurst Road Markings (1975)[6] 1WLR.

2. S.13 Sale by Description

S 13(1)[7] implies a term that where there is a contract for the sale of goods on the basis of a description the goods will agree with the description.

It may be noted that S.13(1) does not apply where the buyer sees , the actual goods before sale case: Harlington & Leinster v.Christopher Hull Fine Art (1991)[8].It may also be noted that S.13 is concerned with description but not with quality.

Case Law: Arcos v. Ranaason (1933)AC 470[9].

3. S.14: Implied Term as to Quality

S.14 (2 A)[10] Where the seller sells goods in the course of business, the implied term is that the goods supplied under the contract are of satisfactory quality.
S.14 (2 B)[11] In judging the quality of goods

• Fitness for the purposes for which goods are supplied.
• Appearance and finish
• Freedom from minor defects
• Safety and
• Durability are the factors that are taken into consideration.

S.14 (2 C)[12] provides for limitations on the applicability of S.14 and prescribes S.14 does not apply to

• Defect in quality which is specifically drawn to the attention of the buyer before finalization of the contract.

Case Law: Bartlett v. Sydney Marcus Ltd (1965) WLR 10/3[13].

• Where the goods are examined by the buyer during which the defect ought to have been reversed.

4. S.15: Sale by Sample

S.15[14] applies to all types of sales, whether it is consumer sale or a private sale o a business to business sale.
S.15 (2) [15]provides that contract for sale by sample provides an implied term that

• The bulk will agree with sample in quality
• The goods will be free from any defect making their quality unsatisfactory, provided that such defect will not be apparent when the sample is reasonably examined.

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Sale of Goods Act 1979

1. History

The Sale of Goods Act 1979[1] is an Act of the UK Parliament. It regulates English commercial Law as well as UK Contract Law relating to sale and purchase of goods. The original basis for this Act is Sales of Goods Act 1893.This Act was modified or amended several times which resulted in codification and consolidation of the Law. In order to give a consolidated structure and shape to the Act of 1893, The Sale of Goods Act 1979[2] was passed. Subsequently also, there are many amendments to the Act.

2. Operation

The Sale of Goods Act 1979 attends to a number of functions. The Act applies to contract where goods are transferred or to be transferred to for monetary consideration[3]. The legal rules prescribed by it are very small number, but it contains a large number of presumptions as well as implied terms. These terms and presumptions indicate the most commonly accepted Contracts of Sales. Unless there are any terms to the contrary in the sales contract, the said contract is expected to follow the implications of this law[4].

The Act contains seven parts[5] in all. Part I just mentions the contracts it applies to. The operation guidelines are contained in Parts II to Parts VII. Part II deals with formation of contracts, Part III with the effects of contracts, Part IV with performance of the contracts, Part V with rights of the unpaid seller, part VI for actions for breach of contract and part VII with supplementary[6].

3. Protection to Consumers by implied terms

There are four main protections provided by the Sale of Goods Act 1979[7] to the consumers.
1.)    The seller should have the right for sale of goods (S.12)[8].
2.)    Goods sold by description must agree with the description (S.13)[9].
3.)    Quantity of goods must be satisfactory (S.14)[10].
4.)    If the goods are sold by sample, the actual goods received by the buyer must agree with the sample in quality.
These protections are provided for in the form of statutory implied terms. This means that irrespective of what the parties to a sale of contract agree to these terms will automatically apply to all contracts of sale.

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Testementary Wills

A ‘will’ is a document in which a person prescribes the procedure for the management and distribution of his property (estate) after his/her death.

Purpose of a will:

1. A ‘will’ enables a person to distribute his property among his heirs/ successors rather than leaving such distribution to state laws of descent and distribution.
2. A will protects the right of a person to choose a suitable individual to serve as guardian to bring up his young children in the event of his death.
3. A will enables a person (testator) to decide a suitable individual to serve as executor of his estate and distribute his/her property fairly to the beneficiaries.

Importance of a will

In the absence of a ‘will’, a person owning property is said to have died ‘ intestate’. His /her property is then distributed among his heirs/successors according to the laws of ‘Descent and Distribution’ of the state in which the person resided.

Difference between a ‘will’ and a ‘testament’

An instrument disposing of personal property (movable assets) is called a ‘testament’ while a ‘will’ is a legal document providing for distribution of real property (immovable assets).In course of time, the distinction disappeared and at present, a ‘will’ sometimes called ‘last will and testament’ disposes of both personal and real properties.

Essential conditions of a ‘will’

To be a legally valid document, a ‘will’ has to fulfill the following conditions viz.,

1. The testator must be competent in the sense that he is of sound mind and requisite age at the time he makes the ‘will’ and not at the date/time of his death.
2. A ‘will’ must be in writing and signed by the testator.
3. A ‘will’ must have two witnesses, who can attest that the testator was competent at the time, the will was made. It is desirable that the witness is a person who does not have a financial interest in the will.
4. In order to be admitted to probate, it should be clear that the testator acted freely in executing the ‘will’. A ‘will’ executed as a result of undue influence, fraud or mistake can be declared completely or partially void during probate proceedings.

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