Kinh tế học - Chapter 12: Sale of goods

This is the prescribed textbook for your course.Available NOW at your campus bookstore!Copyright © 2000 McGraw-Hill AustraliaSale of goodsChapter 121Copyright © 2000 McGraw-Hill AustraliaSale of goodsSale of goods is a contract2Copyright © 2000 McGraw-Hill AustraliaSale of goodsRelevant legislation: relevant State ActsRequirements of legislationContracts must include consideration to be covered by legislation.Ownership of goods must pass to the buyer.Only covers contracts for sale of goods, not for work done or materials supplied, otherwise the provisions of the Sale of Goods Act cannot be relied upon.Must be evidenced in writing.3Copyright © 2000 McGraw-Hill AustraliaTypes of goodsDetermine point in time at which ownership will pass to the buyer, along with the “risk” associated with those goods - Specific goodsin existenceidentifiable at time of contract - Unascertained goodsdescribednot identifiable at time of contract - Future goodsto be acquired by the sellermanufactured by seller after contract made 4Copyright © 2000 McGraw-Hill AustraliaDefinitionsSale - Property or title in the goods passes to the buyer at the time the contract is made.Agreement to sell - Title or property in goods is to pass at some point in time after the contract is made.5Copyright © 2000 McGraw-Hill AustraliaSale of goodsCoversGoods - the delivery of the goods is the main substance of the agreement notWork done or materials supplied - involves skill and effort with goods resulting from the effort 6Copyright © 2000 McGraw-Hill AustraliaProperty or possession?Property in goods - Ownership or title to goods, i.e. risk of goodsPossession in goods -Custody or control of goods7Copyright © 2000 McGraw-Hill AustraliaWhen property (and risk) in goods passes, ownership passesType of goods - indicates when property or title in goods passes to buyer.Specific/ascertained - At time parties intend it to pass, considering: - terms of contract - conduct of parties - circumstances.Unascertained/future - At time goods become identifiable and buyer has been notified, or when the parties to the contract of sale intend that it should pass.8Copyright © 2000 McGraw-Hill AustraliaSpecific rules for determining when property in goods passes9Copyright © 2000 McGraw-Hill Australia Romalpa clausesRetention of title clauses- Buyer cannot claim title before full payment has been received.10Copyright © 2000 McGraw-Hill AustraliaNemo dat ruleThe seller of goods cannot pass better title than they actually have.11Copyright © 2000 McGraw-Hill AustraliaSeller without titleEstoppelMercantile agentSale by a seller still in possessionSale by a buyer in possession (without title)Statutory and common law power of saleSale in the market overtSale under voidable title12Copyright © 2000 McGraw-Hill AustraliaEstoppelIf the owner creates an impressionby word or conduct that another partyhas the authority to sell the goods, anda purchaser buys those goods in good faith without knowledge of the deficit in title, for value, the purchaser will gain good title. 13Copyright © 2000 McGraw-Hill AustraliaRules regarding deliveryDuty of seller to deliver - place of delivery - time - timing - third person in possession - expenses - carrier - delivery by sea - quantity - instalment deliveries14Copyright © 2000 McGraw-Hill AustraliaShipping contractsCIF (Cost Insurance Freight)Price includescost of the goodsinsurance (seller organises)freight (seller organises)FOB (Free On Board)Price includescost of the goodsdelivery on board shipinsurance (buyer organises)freight (buyer organises)15Copyright © 2000 McGraw-Hill AustraliaRules regarding acceptanceSeller notifiedReasonable timeConduct of buyerRejection16Copyright © 2000 McGraw-Hill AustraliaRules regarding paymentPay correct amount on delivery - contracted price or - reasonable price17Copyright © 2000 McGraw-Hill AustraliaImplied conditions Breach will terminate contract and allow damages to be claimed.As to title: -seller has rights to sell the goods.Cannot be excluded for consumerAs to correspondence with description: - goods correspond with the description where goods have been  sold by description.As to merchantable quality: - fit for a purpose for which goods of that description are normally  used, unless an examination by the buyer should have revealed any defect.As to fitness for purpose: - where the buyer buys goods in reliance upon the seller’s skill,  after purpose of good known.As to sale by example: - bulk corresponds with the sample supplied - reasonable opportunity to compare bulk of goods to the sample - goods will not be defective.18Copyright © 2000 McGraw-Hill AustraliaImplied warrantiesBreach will enable the innocent party to claim damages:the buyer shall have quiet possessionthe goods shall be free of any undisclosed encumbrances19Copyright © 2000 McGraw-Hill AustraliaRemedies for breach of contract for sale of goodsRights of the unpaid sellerAgainst the goods: - Right to withhold delivery - Right to a lien (possessory) - Right to stop goods in transit - Right to resell the goodsAgainst the buyer (breach of contract): - Sue for damages - Sue for the price20Copyright © 2000 McGraw-Hill AustraliaRemedies for breach of contract for sale of goodsRights of the buyerDamages for non-delivery of goodsBreach of warranty of qualitySpecific performanceRescission of contract21Copyright © 2000 McGraw-Hill Australia