Foundations of Australian Law Fourth Edition Copyright © 2013 Tilde Publishing and Distribution Chapter 11 Sale of goods

Chapter overview This chapter looks at the concepts of  Evolution of the Sale of Goods Act  Contract of sale of goods  Sale and agreement to sell  Possession of goods  Disposal of goods  Transfer of title by non-owners  Performance of contract  Implied terms  Remedies for breaches  Vienna Sales Convention

Evolution of the Sale of Goods Act Evolved from practices of buyers and sellers Australia adopted UK’s Act Each state and territory passed similar statutes  See Table 11.1 Applies to all contracts involving sale of goods commercially or for everyday use

Contract of sale of goods Goods  Existing goods  Future goods  Specific or ascertained goods  Unascertained goods Consideration in the form of money  Price Transfer of property

Sale agreement to sell Executed contracts Executory contracts

Ownership of property Ownership passing from the seller to the buyer  Intention Right of disposal of goods Risk of passing goods

... Rules provided by Sale of Goods Act 1. Unconditional contract for specific goods 2. Conditional contracts for specific goods 3. Contracts for specific goods that require pricing 4. Contracts for goods on approval 5(1) Contract for unascertained or future goods by description 5(2) Delivery to the buyer or carrier without a right of disposal

Transfer of title by a non- owner Exceptions to the nemo dat rule – special powers of sale  Market overt  Estoppel  Sale under a voidable title  Seller is in possession of goods but sells them to a third party  Buyer in possession  Factors or mercantile agents

Performance of a contract Duties of the seller Duties of the buyer

Implied terms Implied conditions  Implied conditions as to title  Implied conditions as to the sale of the goods by description  Implied conditions as to fitness for purpose

...  Implied conditions as to merchantable quality -Merchantable quality of goods bought by description -Merchantable quality of goods bought by sample Implied warranties  Implied warranty – quest possession  Implied warranty goods – free from charge or encumbrances

Remedies for breach of a contract of sale for goods Remedies for the unpaid seller  Rights against goods  Rights against the buyer Remedies for the buyer  Damages  Specific performance  Rescind

Vienna Sales Convention See table 11.4: State Sale of Goods Acts

Chapter review In this chapter you have looked at  Evolution of the Sale of Goods Act  Contract of sale of goods  Sale and agreement to sell  Possession of goods  Disposal of goods  Transfer of title by non-owners  Performance of contract  Implied terms  Remedies for breaches  Vienna Sales Convention