Sale Of Goods 
SALE OF GOODS
Nature and Sources of Sale of Goods Law
It is principally to be found in the Sale of Goods Act Cap 31 and certain propositions of the English Common Law. The Kenyan Sale of Goods Act is a replica of the English Sale of Goods Act of 1893 as passed in 1963. In addition to the Sale of Goods Act, the general rules of contract law apply to contracts for sale of goods.
Contract of the Sale of Goods
S.3 (1) of the Sale of Goods Act defines a contract for the sale of goods as
‘a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price.’
Characteristics of a Contract of Sale of Goods
The legal consequences of the above definition are as follows:-
a) A sale of goods contract is to be formed according to the rules which govern the formation of contracts.
b) The contract effects a transfer to the buyer of the property in the goods sold;
Where the transfer is immediate the contract constitutes a sale.
Where the transfer is delayed the contract constitutes an agreement to sell
The property in goods in this context means the ownership of the goods sold or agreed to be sold in effect what the buyer pays for is not the physical goods but the right to own them as soon as he has acquired the ownership he will be in a position to do anything he pleases.
c) The term contract of sale therefore includes both a sale and an agreement to sell
d) The consideration for the transfer of ownership must be a money consideration. This means that barter is not a sale of goods it is an exchange of goods since either party pays no money.
e) Provision that the property in goods is transferred means that there must be two different parties to the contract, i.e., seller and buyer. Consequently, a person cannot sell goods to himself although it appears possible that he can do so in distinct capacities.
f) The subject matter of the contract of sale must be goods. The Act defines the term goods to
Nature and Sources of Sale of Goods Law
It is principally to be found in the Sale of Goods Act Cap 31 and certain propositions of the English Common Law. The Kenyan Sale of Goods Act is a replica of the English Sale of Goods Act of 1893 as passed in 1963. In addition to the Sale of Goods Act, the general rules of contract law apply to contracts for sale of goods.
Contract of the Sale of Goods
S.3 (1) of the Sale of Goods Act defines a contract for the sale of goods as
‘a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price.’
Characteristics of a Contract of Sale of Goods
The legal consequences of the above definition are as follows:-
a) A sale of goods contract is to be formed according to the rules which govern the formation of contracts.
b) The contract effects a transfer to the buyer of the property in the goods sold;
Where the transfer is immediate the contract constitutes a sale.
Where the transfer is delayed the contract constitutes an agreement to sell
The property in goods in this context means the ownership of the goods sold or agreed to be sold in effect what the buyer pays for is not the physical goods but the right to own them as soon as he has acquired the ownership he will be in a position to do anything he pleases.
c) The term contract of sale therefore includes both a sale and an agreement to sell
d) The consideration for the transfer of ownership must be a money consideration. This means that barter is not a sale of goods it is an exchange of goods since either party pays no money.
e) Provision that the property in goods is transferred means that there must be two different parties to the contract, i.e., seller and buyer. Consequently, a person cannot sell goods to himself although it appears possible that he can do so in distinct capacities.
f) The subject matter of the contract of sale must be goods. The Act defines the term goods to