Theory question 107
Law of ContractCommerce 2 (answer five questions)
(a) What is a contract of sale of goods?
(b) State any three of its provisions.
(c) Explain two conditions that constitute acceptance in the contract of sale of goods.
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(a) A contract of sale of goods is a contract by which the seller transfers or agrees to transfer the ownership of goods to the buyer for a money consideration called the price (Sale of Goods Act).
(b) Three provisions (implied terms): the seller has the right (title) to sell; goods sold by description must match the description; goods must be of merchantable quality; goods must be fit for the purpose made known to the seller; goods sold by sample must match the sample; rules on when ownership and risk pass; price must be paid.
(c) Acceptance – the buyer is deemed to have accepted goods when: he tells the seller he has accepted them; he does something with the goods inconsistent with the seller's ownership (e.g. resells or uses them); he keeps them beyond a reasonable time without telling the seller he rejects them.
Use the Sale of Goods Act terms.