Chapter 4: Sale of Goods Law - Introduction and Implied Terms

According to the notes, a contract of sale of goods is a contract where the seller transfers or agrees to transfer the property in the goods to the buyer for a price. Which statute section is cited for this definition?

• Section 2 of SOGA

• Section 4(1) of SOGA

• Section 13 of SOGA

• Section 16(1)(a) of SOGA

Answer explanation

The definition of a contract of sale of goods is found in Section 4(1) of SOGA, which states that the seller transfers or agrees to transfer property in goods to the buyer for a price.

Which of the following best defines goods under Section 2 of SOGA as written in the notes?

• All immovable property including land and buildings

• Every kind of movable property other than actionable claims and money; includes stocks and shares; growing crops, grass and things attached to land agreed to be severed before sale or under the contract of sale

• Tangible items only, excluding things attached to land

• Only items produced by manufacturing processes

Answer explanation

The correct choice defines goods as every kind of movable property, excluding actionable claims and money, and includes items like stocks, shares, and crops, which aligns with Section 2 of SOGA.

Under the differences between sale and agreement to sell, when does ownership or property in the goods pass from seller to buyer?

• Only after full payment is made

• At the time of delivery regardless of price

• In a sale, at once; while in an agreement to sell, at a future time or subject to some condition to be fulfilled

• Only when the buyer examines the goods

Answer explanation

In a sale, ownership passes immediately to the buyer, while in an agreement to sell, it occurs later or upon fulfilling certain conditions. Thus, the correct choice highlights this distinction.

Which implied term ensures that goods correspond with their description?

• Implied condition as to time

• Implied condition as to description

• Implied warranty as to quiet possession

• Implied condition as to merchantable quality

Answer explanation

The implied condition as to description ensures that the goods sold must match the description provided by the seller. This is crucial for consumer protection, making 'Implied condition as to description' the correct choice.

Which implied term protects the buyer’s right to enjoy the goods without disturbance from the seller or third parties with better title?

• Implied warranty as to quiet possession

• Implied condition as to fitness for particular purpose

• Implied condition as to title

• Implied condition as to time

Answer explanation

The implied warranty as to quiet possession ensures that the buyer can enjoy the goods without interference from the seller or any third parties claiming a better title, making it the correct choice.

Identify the case that illustrates the implied condition that goods must correspond with description when sold by sample and description (bulk of the goods did not correspond).

• Varley v Whipp

• Moore & Co v Landauer & Co

• Grant v Australian Knitting Mills

• David Jones v Willis

Answer explanation

In Moore & Co v Landauer & Co, the goods sold did not match the description provided, illustrating the implied condition that goods must correspond with both sample and description.

In Varley v Whipp, what key misdescription led to the buyer’s remedy?

• The machine was brand new but priced as used

• The machine had only cut 50 acres and was in perfect condition

• The machine was said to have only cut 30 acres but proved much older and in bad condition

• The machine’s parts were missing and weight was misstated

Answer explanation

The key misdescription in Varley v Whipp was that the machine was said to have only cut 30 acres, but it was actually much older and in bad condition, leading to the buyer's remedy.

What was the buyer entitled to do in Moore & Co v Landauer & Co when the cases contained only 24 tins instead of 30 tins as described?

• Claim damages but had to accept the goods

• Reject the contract because the goods did not correspond with the description

• Pay a reduced price proportional to the shortage

• Seek specific performance to repack the tins

Answer explanation

In Moore & Co v Landauer & Co, the buyer was entitled to reject the contract because the goods did not correspond with the description, as they received only 24 tins instead of the promised 30.

Which principle is highlighted under implied condition as to fitness for particular purpose where the buyer must state the purpose of the goods to the seller when making the contract?

• Caveat venditor

• Caveat emptor

• Res ipsa loquitur

• Uberrimae fidei

Answer explanation

The principle of 'Caveat emptor' emphasizes that the buyer must inform the seller of the specific purpose for which the goods are intended. This places the responsibility on the buyer to ensure the goods meet their needs.

According to Section 16(1)(a) of SOGA (as summarized), which of the following is NOT one of the four conditions for fitness for particular purpose?

• The buyer must state the purpose to the seller

• The goods must be those the seller usually deals with

• The buyer must be relying on the seller’s skill and judgment

• The goods must be purchased by their brand or trade name

Answer explanation

The correct choice is 'The goods must be purchased by their brand or trade name' because this is not a condition for fitness for a particular purpose under Section 16(1)(a) of SOGA.