Page 167 - DMGT102_MERCANTILE_LAWS_I

Unit 12: Law of Sales of Goods

for goods (the bathroom paint was at half price because the labels had been removed) this Notes
can be considered a remedy of a breach of contract and therefore negate any future claim
on other losses suffered by the buyer (such as her painting and decorating contract). In this
case then it is fair to surmise that Susan would not be able to claim any damages in relation
to the bathroom paint.
The question of damages in relation to the masonry paint (the rerendering and repainting of
the building) Susan could attempt to claim damages from Paintplus but unless the Courts

decided that the goods used were both “specific” or “ascertained” and therefore damages
could be claimed, the amount awarded (if any) will be solely at the courts discretion.
Question
Analyse the case and Relate case with sales of good acts.

12.7 Summary

z A contract of sale is a contract whereby the seller transfers or agrees to transfer the property
in goods to the buyer for a price. Sale is to be distinguished from an agreement to sell.
z Where under a contract of sale, the property in goods is transferred from the seller to the
buyer, it is a called a sale.
z An agreement to sell means a contract of sale under which the transfer of property in goods
is to take place at a future date or subject to conditions thereafter to be fulfi lled.
z Goods may be classified as existing, future and contingent. In contract of sale, parties make

certain stipulations.
z All stipulations are not treated on the same footing. These stipulations are technically
known as conditions and warranties.

12.8 Keywords

Condition: A condition is a stipulation essential to the main purpose of the contact, the breach of
which gives rise to a right to treat the contract as repudiated.
Contract of Sale: A contract of sale of goods is a contract whereby the seller transfers or agrees to
transfer the property in goods to the buyer for a price.

Delivery: It is defined as a voluntary transfer of possession from one person to another.
Ex-ship contracts: Under this agreement the seller has to deliver the goods to the buyer at the
port of destination.
Goods: Goods mean every kind of movable property other than actionable claims and money.

12.9 Self Assessment

State whether the following statements are true or false:
1. No sale can take place without a price.
2. The delivery of ascertained goods is essential for the completion of sale.
3. Consideration in a contract of sale of goods can also be paid partly in money and partly in
goods.
4. The right of lien by an unpaid seller can be exercised for the non-payment of price of goods
and other charges.

LOVELY PROFESSIONAL UNIVERSITY 161