Law of Sale of Goods (Part I)
Topic
12
1. 2. 3. 4. 5.
Law of Sale of Goods (Part I)
LEARNING OUTCOMES
By the end of this topic, you should be able to: Define the meaning of goods; Describe the classification of goods; Differentiate a contract of sale and an agreement to sell; Explain the implied terms in a contract of sale of goods; and Identify the importance of transfer of property in the goods.
INTRODUCTION
The Sale of Goods Act 1957 (Revised 1989) is the statute applicable to sale of goods in Peninsular Malaysia. For Sabah and Sarawak, the law of sale of goods is governed by Section 5(2) of the Civil Law Act 1956. It provides that: „The law to be administered shall be the same as would be administered in England in the like case at the corresponding period.‰ In effect, Sabah and Sarawak continue to apply principles of English law relating to the sale of goods. The Sale of Goods Act 1957 was enacted based on the English Sale of Goods Act 1893 (which was replaced by the Sale of Goods Act 1979). The Sale of Goods Act 1957 applies to contracts for the sale of all types of goods including second-hand goods, and to commercial and private sales, wholesale and retail. The general law of contract will continue to apply to contracts for the sale of goods as Section 3 of the Sale of Goods Act 1957 expressly provides for the continual application to contracts for the sale of goods of the
198
TOPIC 12
LAW OF SALE OF GOODS (PART I)
provisions of the Contracts Act 1950 „in so far as they are not inconsistent with the express provision of this Act‰.
12.1
DEFINITION OF GOODS
Goods under Section 2 of the Sale of Goods Act, 1957 means „every kind of movable property other than actionable claims and money and includes stocks and shares, growing crops, grass, and things attached to or forming part of the land which agreed to be severed before sale or under the contract of sale.‰ In Section 6 of the Sale of Goods Act 1957, goods which form the subject of a contract of sale may be either existing
12
1. 2. 3. 4. 5.
Law of Sale of Goods (Part I)
LEARNING OUTCOMES
By the end of this topic, you should be able to: Define the meaning of goods; Describe the classification of goods; Differentiate a contract of sale and an agreement to sell; Explain the implied terms in a contract of sale of goods; and Identify the importance of transfer of property in the goods.
INTRODUCTION
The Sale of Goods Act 1957 (Revised 1989) is the statute applicable to sale of goods in Peninsular Malaysia. For Sabah and Sarawak, the law of sale of goods is governed by Section 5(2) of the Civil Law Act 1956. It provides that: „The law to be administered shall be the same as would be administered in England in the like case at the corresponding period.‰ In effect, Sabah and Sarawak continue to apply principles of English law relating to the sale of goods. The Sale of Goods Act 1957 was enacted based on the English Sale of Goods Act 1893 (which was replaced by the Sale of Goods Act 1979). The Sale of Goods Act 1957 applies to contracts for the sale of all types of goods including second-hand goods, and to commercial and private sales, wholesale and retail. The general law of contract will continue to apply to contracts for the sale of goods as Section 3 of the Sale of Goods Act 1957 expressly provides for the continual application to contracts for the sale of goods of the
198
TOPIC 12
LAW OF SALE OF GOODS (PART I)
provisions of the Contracts Act 1950 „in so far as they are not inconsistent with the express provision of this Act‰.
12.1
DEFINITION OF GOODS
Goods under Section 2 of the Sale of Goods Act, 1957 means „every kind of movable property other than actionable claims and money and includes stocks and shares, growing crops, grass, and things attached to or forming part of the land which agreed to be severed before sale or under the contract of sale.‰ In Section 6 of the Sale of Goods Act 1957, goods which form the subject of a contract of sale may be either existing