Theory question 105
Purchase and Sale of Goods(a) List five conditions that could lead to the dissolution of a contract.
(b) Explain the following Acts: (i) Sale of Goods Act; (ii) Foods and Drugs Acts; (iii) Standard Organization Act; (iv) Factory, Shops and Offices Act; (v) Hire Purchase Act
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(a) Any five: performance (both parties fulfil their obligations); agreement of both parties; breach of contract; frustration/impossibility (e.g. death, destruction of subject matter, war); lapse of time; operation of law (e.g. bankruptcy); rescission for misrepresentation or fraud.
(b)(i) Sale of Goods Act: governs contracts in which ownership of goods passes for money; goods must fit their description, be of merchantable quality and fit for purpose.
(ii) Foods and Drugs Act: controls the making and sale of food and drugs so that they are safe, clean, correctly labelled and not adulterated or expired.
(iii) Standard Organization Act: sets up the standards body that fixes and enforces quality standards for goods produced or imported.
(iv) Factory, Shops and Offices Act: protects workers' health, safety and welfare at work (ventilation, sanitation, safety of machines, first aid, working conditions).
(v) Hire Purchase Act: regulates hire purchase agreements, e.g. requires written agreements, states rights of buyer and seller, limits repossession after a large part has been paid.
For each Act, say whom it protects and how.