The Law of Sale of Goods

Hi folks,

To be an entrepreneur we should know little bit about law. This time I would like to share about the law of sale of goods in Malaysia..

Sales of Goods Act 1957 (SOGA)

s4 SOGA- A contract of SOG is a contract

There may be a contract of sale between one part-owner and another. contract.

A contract of sale is first and foremost a

ie: a consensual transaction based on an

s.4(1) states that the transfer of property in

s.2 defines price as ‘the money

The consideration for the transfer of

As such, the contract will not be a contract

e.g: The exchange of goods for goods is

s12(1) SOGA – a stipulation in a contract of

s12(2) – a condition is a stipulation

A condition is a term which is vital

s12(3)- a warranty is a stipulation collateral

s12(4)- whether a stipulation is a condition or

As a general rule, a breach of condition

 

In the following circumstances (s13(1)(2)), the

innocent party cannot repudiate the contract but can merely claim damages.

i)

Where a contract of sale is subject to any condition to be fulfilled by the seller and the buyer waives the condition;

ii)Where the buyer elects to treat the breach of

iii) Where the contract of sale is not severable (separable) and the buyer has accepted the goods or part thereof, the breach of any condition must be accepted as a breach of warranty unless otherwise provided in the contract.

Note: severable contract means an agreement which is made up of several separate contracts between the same parties, such as series of sales, shipments, or different pieces of equipment.

iv) Where the contract is for specific goods the property (ownership) in which has passed to the buyer, the breach of any condition must be accepted as a breach of warranty unless otherwise provided in the contract.

condition as a breach of warranty and claims damages only;

entitles the innocent party to repudiate the contract.(additional) to the main purpose of the contract, the breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated.warranty depends in each case on the construction of the contract. essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.goods must be for a price. consideration for a SOG.’property in goods must be monetary.of sale of goods if the consideration is in some other form.