PART I CONTRACTS TO WHICH ACT
APPLIES
1. Contracts
to which Act applies
(1) This Act applies
to contracts of sale of goods made on or after (but not to those made before) 1
January 1894.
(2) In relation to
contracts made on certain dates, this Act applies subject to the modification of
certain of its sections as mentioned in Schedule 1 below.
(3) Any such
modification is indicated in the section concerned by a reference to Schedule 1
below.
(4) Accordingly,
where a section does not contain such a reference, this Act applies in relation
to the contract concerned without such modification of the
section.
PART II FORMATION OF THE
CONTRACT
Contract of sale
2. Contract of
sale
(1) A contract of
sale of goods is a contract by which the seller transfers or agrees to transfer
the property in goods to the buyer for a money consideration, called the
price.
(2) There may a
contract of sale between one part owner and another.
(3) A contract of
sale may be absolute or conditional.
(4) Where under a
contract of sale the property in the goods is transferred from the seller to the
buyer the contact is called a sale.
(5) Where under a
contract of sale the transfer of the property in the goods is to take place at a
future time or subject to some condition later to be fulfilled the contract is
called an agreement to sell.
(6) An agreement to
sell becomes a sale when the time elapses or the conditions are fulfilled
subject to which the property in the goods is to be
transferred.
3. Capacity to
buy and sell
(1) Capacity to buy
and sell is regulated by the general law concerning capacity to contract and to
transfer and acquire property.
(2) Where necessaries
are sold and delivered to a minor or to a person who by reason of mental
incapacity or drunkenness is incompetent to contract, he must pay a reasonable
price for them.
(3) In subsection (2)
above 'necessaries' means goods suitable to the condition in life of the minor
or other person concerned and to his actual requirements at the time of the sale
and delivery.
Formalities of
contract
4. How
contract of sale is made
(1) Subject to this
and any other Act, a contract of sale may be made in writing (either with or
without seal), or by word of mouth, or partly in writing and partly by word of
mouth, or may be implied from the conduct of the parties.
(2) Nothing in this
section affects the law relating to corporations.
Subject matter of
contract
5. Existing or
future goods
(1) The goods which
form the subject of a contract of sale may be either existing goods, owned or
possessed by the seller, or goods to be manufactured or acquired by him after
the making of the contract of sale, in this Act called future
goods.
(2) There may be a
contract for the sale of goods the acquisition of which by the seller depends on
a contingency which may or may not happen.
(3) Where by a
contract of sale the seller purports to effect a present sale of future goods,
the contract operates as an agreement to sell the goods.
6. Goods which
have perished
Where there is a contract for the sale of
specific goods, and the goods without the knowledge of the seller have perished
at the time when a contract is made, the contract is void.
7. Goods
perishing before sale but after agreement to sell
Where there is an
agreement to sell specific goods and subsequently the goods, without any fault
on the part of the seller or buyer, perish before the risk passes to the buyer,
the agreement is avoided.
The price
8.
Ascertainment of price
(1) The price in a
contract of sale may be fixed by the contract, or may be left to be fixed in a
manner agreed by the contract, or may be determined by the course of dealing
between the parties.
(2) Where the price
is not determined as mentioned in subsection (1) above the buyer must pay a
reasonable price.
(3) What is a
reasonable price is a question of fact dependent on the circumstances of each
particular case.
9. Agreement
to sell at valuation
(1) Where there is an
agreement to sell goods on the terms that the price is to be fixed by the
valuation of a third party, and he cannot or does not make the valuation, the
agreement is avoided; but if the goods or any part of them have been delivered
to and appropriated by the buyer he must pay a reasonable price for
them.
(2) Where the third
party is prevented from making the valuation by the fault of the seller or
buyer, the party not at fault may maintain an action for damages against the
party at fault.
Implied terms etc.
10. Stipulations about
time
(1) Unless a
different intention appears from the terms of the contract, stipulations as to
time of payment are not of the essence of a contract of
sale.
(2) Whether any other
stipulation as to time is or is not of the essence of the contract depends on
the terms of the contract.
(3) In a contract of
sale 'month' prima facie means calendar month.
11. When condition to be
treated as warranty
(1) This section does
not apply to Scotland.
(2) Where a contract
of sale is subject to a condition to be fulfilled by the seller, the buyer may
waive the condition, or may elect to treat the breach of the condition as a
breach of warranty and not as a ground for treating the contract as
repudiated.
(3) Whether a
stipulation in a contract of sale is a condition, the breach of which may give
rise to a right to treat the contract as repudiated, or a warranty, the breach
of which may give rise to a claim for damages but not to a right to reject the
goods and treat the contract as repudiated, depends in each case on the
construction of the contract; and a stipulation may be a condition, though
called a warranty in the contract.
(4) Subject to
section 35A below where a contract of sale is not severable and the buyer has
accepted the goods or part of them, the breach of a condition to be fulfilled by
the seller can only be treated as a breach of warranty, and not as a ground for
rejecting the goods and treating the contract as repudiated, unless there is an
express or implied term of the contract to that effect.
(6) Nothing in this
section affects a condition or warranty whose fulfilment is excused by law by
reason of impossibility or otherwise.
(7) Paragraph 2 of
Schedule 1 below applies in relation to a contract made before 22 April 1967 or
(in the application of this Act to Northern Ireland) 28 July 1967.
12. Implied terms about
title, etc.
(1) In a contract of
sale, other than one to which subsection (3) below applies, there is an implied
term on the part of the seller that in the case of a sale he has a right to sell
the goods, and in the case of an agreement to sell he will have such a right at
the time when the property is to pass.
(2) In a contract of
sale, other than one to which subsection (3) below applies, there is also an
implied term that—
(a) the goods are
free, and will remain free until the time when the property is to pass, from any
charge or encumbrance not disclosed or known to the buyer before the contract is
made, and
(b) the buyer will
enjoy quiet possession of the goods except so far as it may be disturbed by the
owner or other person entitled to the benefit of any charge or encumbrance so
disclosed or known.
(3) This subsection
applies to a contract of sale in the case of which there appears from the
contract or is to be inferred from its circumstances an intention that the
seller should transfer only such title as he or a third person may
have.
(4) In a contract to
which subsection (3) above applies there is an implied term that all charges or
encumbrances known to the seller and not known to the buyer have been disclosed
to the buyer before the contract is made.
(5) In a contract to
which subsection (3) above applies there is also an implied term that none of
the following will disturb the buyer's quiet possession of the goods,
namely—
(a) the
seller;
(b) in a case where
the parties to the contract intend that the seller should transfer only such
title as a third person may have, that person;
(c) anyone claiming
through or under the seller or that third person otherwise than under a charge
or encumbrance disclosed or known to the buyer before the contract is
made.
(5A) As regards England and Wales and
Northern Ireland, the term implied by subsection (1) above is a condition and
the terms implied by subsections (2), (4) and (5) above are
warranties.
(6) Paragraph 3 of
Schedule 1 below applies in relation to a contract made before 18 May
1973.
13. Sale by
description
(1) Where there is a
contract for the sale of goods by description, there is an implied term that the
goods will correspond with the description.
(1A) As regards England and Wales and
Northern Ireland, the term implied by subsection (1) above is a
condition.
(2) If the sale is by
sample as well as by description it is not sufficient that the bulk of the goods
corresponds with the sample if the goods do not also correspond with the
description.
(3) A sale of goods
is not prevented from being a sale by description by reason only that, being
exposed for sale or hire, they are selected by the buyer.
(4) Paragraph 4 of
Schedule 1 below applies in relation to a contract made before 18 May
1973.
14. Implied terms about
quality or fitness
(1) Except as
provided by this section and section 15 below and subject to any other
enactment, there is no implied term about the quality or fitness for any
particular purpose of goods supplied under a contract of
sale.
(2) Where the seller
sells goods in the course of a business, there is an implied term that the goods
supplied under the contract are of satisfactory quality.
(2A) For the purposes of this Act, goods
are of satisfactory quality if they meet the standard that a reasonable person
would regard as satisfactory, taking account of any description of the goods,
the price (if relevant) and all the other relevant
circumstances.
(2B) For the purposes of this Act,
the quality of goods includes their state and condition and the following (among
others) are in appropriate cases aspects of the quality of
goods—
(a) fitness for all
the purposes for which goods of the kind in question are commonly
supplied,
(b) appearance and
finish,
(c) freedom from
minor defects,
(d) safety,
and
(e)
durability.
(2C) The term implied by
subsection (2) above does not extend to any matter making the quality of goods
unsatisfactory—
(a) which is
specifically drawn to the buyer's attention before the contract is
made,
(b) where the buyer
examines the goods before the contract is made, which that examination ought to
reveal, or
(c) in the case of a
contract for sale by sample, which would have been apparent on a reasonable
examination of the sample.
(2D) If the buyer deals as consumer or,
in Scotland, if a contract of sale is a consumer contract, the relevant
circumstances mentioned in subsection (2A) above include any public statements
on the specific characteristics of the goods made about them by the seller, the
producer or his representative, particularly in advertising or on
labelling.
(2E) A public statement is not by
virtue of subsection (2D) above a relevant circumstance for the purposes of
subsection (2A) above in the case of a contract of sale, if the seller shows
that—
(a) at the time
the contract was made, he was not, and could not reasonably have been, aware of
the statement,
(b) before the
contract was made, the statement had been withdrawn in public or, to the extent
that it contained anything which was incorrect or misleading, it had been
corrected in public, or
(c) the decision
to buy the goods could not have been influenced by the statement.
(2F) Subsections (2D) and (2E) above do
not prevent any public statement from being a relevant circumstance for the
purposes of subsection (2A) above (whether or not the buyer deals as consumer
or, in Scotland, whether or not the contract of sale is a consumer contract) if
the statement would have been such a circumstance apart from those
subsections.
(3) Where the seller
sells goods in the course of a business and the buyer, expressly or by
implication, makes known—
(a) to the seller,
or
(b) where the
purchase price of part of it is payable by instalments and the goods were
previously sold by a credit-broker to the seller, to that
credit-broker,
any particular purpose
for which the goods are being bought, there is an implied term that the goods
supplied under the contract are reasonably fit for that purpose, whether or not
that is a purpose for which such goods are commonly supplied, except where the
circumstances show that the buyer does not rely, or that it is unreasonable for
him to rely, on the skill or judgment of the seller or
credit-broker.
(4) An implied term
about quality or fitness for a particular purpose may be annexed to a contract
of sale by usage.
(5) The preceding
provisions of this section apply to a sale by a person who in the course of a
business is acting as agent for another as they apply to a sale by a principal
in the course of a business, except where that other is not selling in the
course of a business and either the buyer knows that fact or reasonable steps
are taken to bring it to the notice of the buyer before the contract is
made.
(6) As regards
England and Wales and Northern Ireland, the terms implied by subsections (2) and
(3) above are conditions.
(7) Paragraph 5 of
Schedule 1 below applies in relation to a contract made on or after 18 May 1973
and before the appointed day, and paragraph 6 in relation to one made before 18
May 1973.
(8) In subsection (7)
above and paragraph 5 of Schedule 1 below references to the appointed day are to
the day appointed for the purposes of those provisions by an order of the
Secretary of State made by statutory instrument.
Sale by sample
15. Sale by
sample
(1) A contract of
sale is a contract for sale by sample where there is an express or implied term
to that effect in the contract.
(2) In the case of a
contract for sale by sample there is an implied term—
(a) that the bulk
will correspond with the sample in quality;
(c) that the goods
will be free from any defect, making their quality unsatisfactory, which would
not be apparent on reasonable examination of the sample.
(3) As regards
England and Wales and Northern Ireland, the term implied by subsection (2) above
is a condition.
(4) Paragraph 7 of
Schedule 1 below applies in relation to a contract made before 18 May
1973.
Miscellaneous
15A. Modification of remedies for breach
of condition in non-consumer cases
(1) Where in the case
of a contract of sale—
(a) the buyer would,
apart from this subsection, have the right to reject goods by reason of a breach
on the part of the seller of a term implied by section 13, 14 or 15 above,
but
(b) the breach is so
slight that it would be unreasonable for him to reject
them,
then, if the buyer does not deal as consumer,
the breach is not to be treated as a breach of condition but may be treated as a
breach of warranty.
(2) This section
applies unless a contrary intention appears in, or is to be implied from, the
contract.
(3) It is for the
seller to show that a breach fell within subsection (1)(b)
above.
(4) This section does
not apply to Scotland.
PART III EFFECTS OF THE
CONTRACT
Transfer of property as between seller and
buyer
16. Goods must be
ascertained
Subject to section 20A
below where there is a contract for the sale of unascertained goods no property
in the goods is transferred to the buyer unless and until the goods are
ascertained.
17. Property passes when
intended to pass
(1) Where there is a
contract for the sale of specific or ascertained goods the property in them is
transferred to the buyer at such time as the parties to the contract intend it
to be transferred.
(2) For the purpose
of ascertaining the intention of the parties regard shall be had to the terms of
the contract, the conduct of the parties and the circumstances of the
case.
18. Rules for ascertaining
intention
Unless a different
intention appears, the following are rules for ascertaining the intention of the
parties as to the time at which the property in the goods is to pass to the
buyer.
Rule
1.—Where there is an
unconditional contract for the sale of specific goods in a deliverable state the
property in the goods passes to the buyer when the contract is made, and it is
immaterial whether the time of payment or the time of delivery, or both, be
postponed.
Rule
2.—Where there is a
contract for the sale of specific goods and the seller is bound to do something
to the goods for the purpose of putting them into a deliverable state, the
property does not pass until the thing is done and the buyer has notice that it
has been done.
Rule
3.—Where there is a
contract for the sale of specific goods in a deliverable state but the seller is
bound to weigh, measure, test, or do some other act or thing with reference to
the goods for the purpose of ascertaining the price, the property does not pass
until the act or thing is done and the buyer has notice that it has been
done.
Rule
4.—When goods are
delivered to the buyer on approval or on sale or return or other similar terms
the property in the goods passes to the buyer:—
(a) when he signifies
his approval or acceptance to the seller or does any other act adopting the
transaction;
(b) if he does not
signify his approval or acceptance to the seller but retains the goods without
giving notice of rejection, then, if a time has been fixed for the return of the
goods, on the expiration of that time, and, if no time has been fixed, on the
expiration of a reasonable time.
Rule
5.—(1) Where there is a contract for the
sale of unascertained or future goods by description, and goods of that
description and in a deliverable state are unconditionally appropriated to the
contract, either by the seller with the assent of the buyer or by the buyer with
the assent of the seller, the property in the goods then passes to the buyer;
and the assent may be express or implied, and may be given either before of
after the appropriation is made.
(2) Where, in
pursuance of the contract, the seller delivers the goods to the buyer or to a
carrier or other bailee or custodier (whether named by the buyer or not) for the
purpose of transmission to the buyer, and does not reserve the right of
disposal, he is to be taken to have unconditionally appropriated the goods to
the contract.
(3) Where there is a
contract for the sale of a specified quantity of unascertained goods in a
deliverable state forming part of a bulk which is identified either in the
contract or by subsequent agreement between the parties and the bulk is reduced
to (or to less than) that quantity, then, if the buyer under that contract is
the only buyer to whom goods are then due out of the bulk—
(a) the remaining
goods are to be taken as appropriated to that contract at the time when the bulk
is so reduced; and
(b) the property in
those goods then passes to that buyer.
(4) Paragraph (3)
above applies also (with the necessary modifications) where a bulk is reduced to
(or to less than) the aggregate of the quantities due to a single buyer under
separate contracts relating to that bulk and he is the only buyer to whom goods
are then due out of that bulk.
19. Reservation of right of
disposal
(1) Where there is a
contract for the sale of specific goods or where goods are subsequently
appropriated to the contract, the seller may, by the terms of the contract or
appropriation, reserve the right of disposal of the goods until certain
conditions are fulfilled; and in such a case, notwithstanding the delivery of
the goods to the buyer, or to a carrier or other bailee or custodier for the
purpose of transmission to the buyer, the property in the goods does not pass to
the buyer until the conditions imposed by the seller are
fulfilled.
(2) Where goods are
shipped, and by the bill of lading the goods are deliverable to the order of the
seller or his agent, the seller is prima facie to be taken to reserve the right
of disposal.
(3) Where the seller
of goods draws on the buyer for the price, and transmits the bill of exchange
and bill of lading to the buyer together to secure acceptance or payment of the
bill of exchange, the buyer is bound to return the bill of lading if he does not
honour the bill of exchange, and if he wrongfully retains the bill of lading the
property in the goods does not pass to him.
20. Passing of
Risk
(1) Unless otherwise
agreed, the goods remain at the seller's risk until the property in them is
transferred to the buyer, but when the property in them is transferred to the
buyer the goods are at the buyer's risk whether delivery has been made or
not.
(2) But where
delivery has been delayed through the fault of either buyer or seller the goods
are at the risk of the party at fault as regards any loss which might not have
occurred but for such fault.
(3) Nothing in this
section affects the duties or liabilities of either seller or buyer as a bailee
or custodier of the goods of the other party.
(4) In a case where the buyer deals as
consumer or, in Scotland, where there is a consumer contract in which the buyer
is a consumer, subsections (1) to (3) above must be ignored and the goods remain
at the seller’s risk until they are delivered to the
consumer.
20A Undivided shares in goods forming
part of a bulk
(1) This section applies to a contract for the sale of a specified quantity of unascertained goods if the following conditions are met—
(a) the goods or some of them form part of a bulk which is identified either in the contract or by subsequent agreement between the parties; and
(b) the buyer has paid the price for some or all of the goods which are the subject of the contract and which form part of the bulk.
(2) Where this section applies, then (unless the parties agree otherwise), as soon as the conditions specified in paragraphs (a) and (b) of subsection (1) above are met or at such later time as the parties may agree—
(a) property in an undivided share in the bulk is transferred to the buyer, and
(b) the buyer becomes an owner in common of the bulk.
(3) Subject to subsection (4) below, for the purposes of this section, the undivided share of a buyer in a bulk at any time shall be such share as the quantity of goods paid for and due to the buyer out of the bulk bears to the quantity of goods in the bulk at that time.
(4) Where the aggregate of the undivided shares of buyers in a bulk determined under subsection (3) above would at any time exceed the whole of the bulk at that time, the undivided share in the bulk of each buyer shall be reduced proportionately so that the aggregate of the undivided shares is equal to the whole bulk.
(5) Where a buyer has paid the price for only some of the goods due to him out of a bulk, any delivery to the buyer out of the bulk shall, for the purposes of this section, be ascribed in the first place to the goods in respect of which payment has been made.
(6) For the purposes of this section payment of part of the price for any goods shall be treated as payment for a corresponding part of the goods.
20B Deemed consent by co-owner to
dealings in bulk goods
(1) A person who has become an owner in common of a bulk by virtue of section 20A above shall be deemed to have consented to—
(a) any delivery of goods out of the bulk to any other owner in common of the bulk, being goods which are due to him under
his contract;
(b) any dealing with or removal, delivery or disposal of goods in the bulk by any other person who is an owner in common of the bulk in so far as the goods fall within that co-owner's undivided share in the bulk at the time of the dealing, removal, delivery or disposal.
(2) No cause of action shall accrue to anyone against a person by reason of that person having acted in accordance with paragraph (a) or (b) of subsection (1) above in reliance on any consent deemed to have been given under that subsection.
(3) Nothing in this section or section 20A above shall—
(a) impose an obligation on a buyer of goods out of a bulk to compensate any other buyer of goods out of that bulk for any shortfall in the goods received by that other buyer;
(b) affect any contractual arrangement between buyers of goods out of a bulk for adjustments between themselves; or
(c) affect the rights of any buyer under his contract.
Transfer of title
21. Sale by person not the
owner
(1) Subject to this
Act, where goods are sold by a person who is not their owner, and who does not
sell them under the authority or with the consent of the owner, the buyer
acquires no better title to the goods than the seller had, unless the owner of
the goods is by his conduct precluded from denying the seller's authority to
sell.
(2) Nothing in this
Act affects—
(a) the provisions of
the Factors Acts or any enactment enabling the apparent owner of goods to
dispose of them as if he were their true owner;
(b) the validity of
any contract of sale under any special common law or statutory power of sale or
under the order of a court of competent jurisdiction.
22. Market
overt
(2) This section does not apply to
Scotland.
(3) Paragraph 8 of
Schedule 1 below applies in relation to a contract under which goods were sold
before 1 January 1968 or (in the application of this Act to Northern Ireland) 29
August 1967.
23. Sale under voidable
title
When the seller of goods has a voidable
title to them, but his title has not been avoided at the time of the sale, the
buyer acquires a good title to the goods, provided he buys them in good faith
and without notice of the seller's defect of title.
24. Seller in possession
after sale
Where a person having
sold goods continues or is in possession of the goods, or of the documents of
title to the goods, the delivery or transfer by that person, or by a mercantile
agent acting for him, of the goods or documents of title under any sale, pledge,
or other disposition thereof, to any person receiving the same in good faith and
without notice of the previous sale, has the same effect as if the person making
the delivery or transfer were expressly authorised by the owner of the goods to
make the same.
25. Buyer in possession
after sale
(1) Where a person
having bought or agreed to buy goods obtains, with the consent of the seller,
possession of the goods or the documents of title to the goods, the delivery or
transfer by that person, or by a mercantile agent acting for him, of the goods
or documents of title, under any sale, pledge, or other disposition thereof, to
any person receiving the same in good faith and without notice of any lien or
other right of the original seller in respect of the goods, has the same effect
as if the person making the delivery or transfer were a mercantile agent in
possession of the goods or documents of title with the consent of the
owner.
(2) For the purposes
of subsection (1) above—
(a) the buyer under a
conditional sale agreement is to be taken not to be a person who has bought or
agreed to buy goods, and
(b) 'conditional sale
agreement' means an agreement for the sale of goods which is a consumer credit
agreement within the meaning of the Consumer Credit Act 1974 under which the
purchase price or part of it is payable by instalments, and the property in the
goods is to remain in the seller (notwithstanding that the buyer is to be in
possession of the goods) until such conditions as to the payment of instalments
or otherwise as may be specified in the agreement are
fulfilled.
(3) Paragraph 9 of
Schedule 1 below applies in relation to a contract under which a person buys or
agrees to buy goods and which is made before the appointed
day.
(4) In subsection (3)
above and paragraph 9 of Schedule 1 below references to the appointed day are to
the day appointed for the purposes of those provisions by an order of the
Secretary of State made by statutory instrument.
26. Supplementary to
sections 24 and 25
In sections 24 and 25
above 'mercantile agent' means a mercantile agent having in the customary course
of his business as such agent authority either—
(a) to sell goods,
or
(b) to consign goods
for the purpose of sale, or
(c) to buy goods,
or
(d) to raise money on
the security of goods.
PART IV PERFORMANCE OF THE
CONTRACT
27. Duties of seller and
buyer
It is the duty of the
seller to deliver the goods, and of the buyer to accept and pay for them, in
accordance with the terms of the contract of sale.
28. Payment and delivery
are concurrent conditions
Unless otherwise
agreed, delivery of the goods and payment of the price are concurrent
conditions, that is to say, the seller must be ready and willing to give
possession of the goods to the buyer in exchange for the price and the buyer
must be ready and willing to pay the price in exchange for possession of the
goods.
29. Rules about
delivery
(1) Whether it is for
the buyer to take possession of the goods or for the seller to send them to the
buyer is a question depending in each case on the contract, express or implied,
between the parties.
(2) Apart from any
such contract, express or implied, the place of delivery is the seller's place
of business if he has one, and if not, his residence; except that, if the
contract is for the sale of specific goods, which to the knowledge of the
parties when the contract is made are in some other place, then that place is
the place of delivery.
(3) Where under the
contract of sale the seller is bound to send the goods to the buyer, but no time
for sending them is fixed, the seller is bound to send them within a reasonable
time.
(4) Where the goods
at the time of sale are in the possession of a third person, there is no
delivery by seller to buyer unless and until the third person acknowledges to
the buyer that he holds the goods on his behalf; but nothing in this section
affects the operation of the issue or transfer of any document of title to
goods.
(5) Demand or tender
of delivery may be treated as ineffectual unless made at a reasonable hour; and
what is a reasonable hour is a question of fact.
(6) Unless otherwise
agreed, the expenses of and incidental to putting the goods into a deliverable
state must be borne by the seller.
30. Delivery of wrong
quantity
(1) Where the seller
delivers to the buyer a quantity of goods less than he contracted to sell, the
buyer may reject them, but if the buyer accepts the goods so delivered he must
pay for them at the contract rate.
(2) Where the seller
delivers to the buyer a quantity of goods larger than he contracted to sell, the
buyer may accept the goods included in the contract and reject the rest, or he
may reject the whole.
(2A) A buyer who does not deal as
consumer may not—
(a) where the seller
delivers a quantity of goods less than he contracted to sell, reject the goods
under subsection (1) above, or
(b) where the seller
delivers a quantity of goods larger than he contracted to sell, reject the whole
under subsection (2) above, if the shortfall or, as the case may be, excess is
so slight that it would be unreasonable for him to do so.
(2B) It is for the seller to show
that a shortfall or excess fell within subsection (2A)
above.
(2C) Subsections (2A) and (2B)
above do not apply to Scotland.
(2D) Where the seller delivers a
quantity of goods—
(a) less than he
contracted to sell, the buyer shall not be entitled to reject the goods under
subsection (1) above,
(b) larger than he
contracted to sell, the buyer shall not be entitled to reject the whole under
subsection (2) above,
unless the shortfall or excess is
material.
(2E) Subsection (2D) above applies to Scotland
only.
(3) Where the seller
delivers to the buyer a quantity of goods larger than he contracted to sell and
the buyer accepts the whole of the goods so delivered he must pay for them at
the contract rate.
(5) This section is
subject to any usage of trade, special agreement, or course of dealing between
the parties.
31. Instalment
deliveries
(1) Unless otherwise
agreed, the buyer of goods is not bound to accept delivery of them by
instalments.
(2) Where there is a
contract for the sale of goods to be delivered by stated instalments, which are
to be separately paid for, and the seller makes defective deliveries in respect
of one or more instalments, or the buyer neglects or refuses to take delivery of
or pay for one or more instalments, it is a question in each case depending on
the terms of the contract and the circumstances of the case whether the breach
of contract is a repudiation of the whole contract or whether it is a severable
breach giving rise to a claim for compensation but not to a right to treat the
whole contract as repudiated.
32. Delivery to
carrier
(1) Where, in
pursuance of a contract of sale, the seller is authorised or required to send
the goods to the buyer, delivery of the goods to a carrier (whether named by the
buyer or not) for the purpose of transmission to the buyer is prima facie deemed
to be delivery of the goods to the buyer.
(2) Unless otherwise
authorised by the buyer, the seller must make such contact with the carrier on
behalf of the buyer as may be reasonable having regard to the nature of the
goods and the other circumstances of the case; and if the seller omits to do so,
and the goods are lost or damaged in course of transit, the buyer may decline to
treat the delivery to the carrier as a delivery to himself or may hold the
seller responsible in damages.
(3) Unless otherwise
agreed, where goods are sent by the seller to the buyer by a route involving sea
transit, under circumstances in which it is usual to insure, the seller must
give such notice to the buyer as may enable him to insure them during their sea
transit, and if the seller fails to do so, the goods are at his risk during such
sea transit.
(4) In a case where the
buyer deals as consumer or, in Scotland, where there is a consumer contract in
which the buyer is a consumer, subsections (1) to (3) above must be ignored, but
if in pursuance of a contract of sale the seller is authorised or required to
send the goods to the buyer, delivery of the goods to the carrier is not
delivery of the goods to the buyer.
33. Risk where goods are
delivered at distant place
Where the seller of
goods agrees to deliver them at his own risk at a place other than that where
they are when sold, the buyer must nevertheless (unless otherwise agreed) take
any risk of deterioration in the goods necessarily incident to the course of
transit.
34. Buyer's right of
examining the goods
Unless otherwise
agreed, when the seller tenders delivery of goods to the buyer, he is bound on
request to afford the buyer a reasonable opportunity of examining the goods for
the purpose of ascertaining whether they are in conformity with the contract
and, in the case of a contract for sale by sample, of comparing the bulk with
the sample.
35.
Acceptance
(1) The buyer is
deemed to have accepted the goods subject to subsection (2)
below—
(a) when he intimates
to the seller that he has accepted them, or
(b) when the goods
have been delivered to him and he does any act in relation to them which is
inconsistent with the ownership of the seller.
(2) Where goods are
delivered to the buyer, and he has not previously examined them, he is not
deemed to have accepted them under subsection (1) above until he has had a
reasonable opportunity of examining them for the purpose—
(a) of ascertaining
whether they are in conformity with the contract, and
(b) in the case of a
contract for sale by sample, of comparing the bulk with the
sample.
(3) Where the buyer
deals as consumer or (in Scotland) the contract of sale is a consumer contract,
the buyer cannot lose his right to rely on subsection (2) above by agreement,
waiver or otherwise.
(4) The buyer is also
deemed to have accepted the goods when after the lapse of a reasonable time he
retains the goods without intimating to the seller that he has rejected
them.
(5) The questions
that are material in determining for the purposes of subsection (4) above
whether a reasonable time has elapsed include whether the buyer has had a
reasonable opportunity of examining the goods for the purpose mentioned in
subsection (2) above.
(6) The buyer is not
by virtue of this section deemed to have accepted the goods merely
because—
(a) he asks for, or
agrees to, their repair by or under an arrangement with the seller,
or
(b) the goods are
delivered to another under a sub-sale or other
disposition.
(7) Where the
contract is for the sale of goods making one or more commercial units, a buyer
accepting any goods included in a unit is deemed to have accepted all the goods
making the unit; and in this subsection 'commercial unit' means a unit division
of which would materially impair the value of the goods or the character of the
unit.
(8) Paragraph 10 of
Schedule 1 below applies in relation to a contract made before 22 April 1967 or
(in the application of this Act to Northern Ireland) 28 July
1967.
35A. Right of partial
rejection
(1) If the
buyer—
(a) has the right to
reject the goods by reason of a breach on the part of the seller that affects
some or all of them, but
(b) accepts some of
the goods, including, where there are any goods unaffected by the breach, all
such goods,
he does not by accepting them lose his right to
reject the rest.
(2) In the case of a
buyer having the right to reject an instalment of goods, subsection (1) above
applies as if references to the goods were references to the goods comprised in
the instalment.
(3) For the purposes
of subsection (1) above, goods are affected by a breach if by reason of the
breach they are not in conformity with the contract.
(4) This section
applies unless a contrary intention appears in, or is to be implied from, the
contract.
36. Buyer not bound to
return rejected goods
Unless otherwise
agreed, where goods are delivered to the buyer, and he refuses to accept them,
having the right to do so, he is not bound to return them to the seller, but it
is sufficient if he intimates to the seller that he refuses to accept
them.
37. Buyer's liability for
not taking delivery of goods
(1) When the seller
is ready and willing to deliver the goods, and requests the buyer to take
delivery, and the buyer does not within a reasonable time after such request
take delivery of the goods, he is liable to the seller for any loss occasioned
by his neglect or refusal to take delivery, and also for a reasonable charge for
the care and custody of the goods.
(2) Nothing in this
section affects the rights of the seller where the neglect or refusal of the
buyer to take delivery amounts to a repudiation of the
contract.
PART V RIGHTS OF UNPAID SELLER AGAINST
THE GOODS
Preliminary
38. Unpaid seller
defined
(1) The seller of
goods is an unpaid seller within the meaning of this Act—
(a) when the whole of
the price has not been paid or tendered;
(b) when a bill of
exchange or other negotiable instrument has been received as conditional
payment, and the condition on which it was received has not been fulfilled by
reason of the dishonour of the instrument or otherwise.
(2) In this Part of
this Act 'seller' includes any person who is in the position of a seller, as,
for instance, an agent of the seller to whom the bill of lading has been
indorsed, or a consignor or agent who has himself paid (or is directly
responsible for) the price.
39. Unpaid seller's
rights
(1) Subject to this
and any other Act, notwithstanding that the property in the goods may have
passed to the buyer, the unpaid seller of goods, as such, has by implication of
law—
(a) a lien on the
goods or right to retain them for the price while he is in possession of
them;
(b) in the case of
the insolvency of the buyer, a right of stopping the goods in transit after he
has parted with the possession of them;
(c) a right of
re-sale as limited by this Act.
(2) Where the
property in goods has not passed to the buyer, the unpaid seller has (in
addition to his other remedies) a right of withholding delivery similar to and
coextensive with his rights of lien or retention and stoppage in transit where
the property has passed to the buyer.
Unpaid seller's
lien
41 Seller's lien
(1) Subject to this Act, the unpaid
seller of goods who is in possession of them is entitled to retain possession of
them until payment or tender of the price in the following cases:-
(a) where the goods have been sold
without any stipulation as to credit;
(b) where the goods have been sold on
credit but the term of credit has expired;
(c) where the buyer becomes insolvent.
(2) The seller may exercise his lien or right
of retention notwithstanding that he is in possession of the goods as agent or
bailee or custodier for the buyer.
42 Part delivery
Where an unpaid
seller has made part delivery of the goods, he may exercise his lien or right of
retention on the remainder, unless such part delivery has been made under such
circumstances as to show an agreement to waive the lien or right of retention.
43 Termination of
lien
(1) The unpaid seller of goods loses
his lien or right of retention in respect of them-
(a) when he delivers the goods to a
carrier or other bailee or custodier for the purpose of transmission to the
buyer without reserving the right of disposal of the goods;
(b) when the buyer or his agent
lawfully obtains possession of the goods;
(c) by waiver of the lien or right of
retention.
(2) An unpaid seller of goods who has
a lien or right of retention in respect of them does not lose his lien or right
of retention by reason only that he has obtained judgment or decree for the
price of the goods.
Stoppage in
transit
44 Right of
stoppage in transit
Subject to this
Act, when the buyer of goods becomes insolvent the unpaid seller who has parted
with the possession of the goods has the right of stopping them in transit, that
is to say, he may resume possession of the goods as long as they are in course
of transit, and may retain them until payment or tender of the price.
45 Duration of
transit
(1) Goods are deemed to be in course
of transit from the time when they are delivered to a carrier or other bailee or
custodier for the purpose of transmission to the buyer, until the buyer or his
agent in that behalf takes delivery of them from the carrier or other bailee or
custodier.
(2) If the buyer or his agent in that
behalf obtains delivery of the goods before their arrival at the appointed
destination, the transit is at an end.
(3) If, after the arrival of the goods
at the appointed destination, the carrier or other bailee or custodier
acknowledges to the buyer or his agent that he holds the goods on his behalf and
continues in possession of them as bailee or custodier for the buyer or his
agent, the transit is at an end, and it is immaterial that a further destination
for the goods may have been indicated by the buyer.
(4) If the goods are rejected by the
buyer, and the carrier or other bailee or custodier continues in possession of
them, the transit is not deemed to be at an end, even if the seller has refused
to receive them back.
(5) When goods are delivered to a ship
chartered by the buyer it is a question depending on the circumstances of the
particular case whether they are in the possession of the master as a carrier or
as agent to the buyer.
(6) Where the carrier or other bailee
or custodier wrongfully refuses to deliver the goods to the buyer or his agent
in that behalf, the transit is deemed to be at an end.
(7) Where part delivery of the goods
has been made to the buyer or his agent in that behalf, the remainder of the
goods may be stopped in transit, unless such part delivery has been made under
such circumstances as to show an agreement to give up possession of the whole of
the goods.
46 How stoppage in
transit is effected
(1) The unpaid seller may exercise his
right of stoppage in transit either by taking actual possession of the goods or
by giving notice of his claim to the carrier or other bailee or custodier in
whose possession the goods are.
(2) The notice may be given either to
the person in actual possession of the goods or to his principal.
(3) If given to the principal, the
notice is ineffective unless given at such time and under such circumstances
that the principal, by the exercise of reasonable diligence, may communicate it
to his servant or agent in time to prevent a delivery to the buyer.
(4) When notice of stoppage in transit
is given by the seller to the carrier or other bailee or custodier in possession
of the goods, he must re-deliver the goods to, or according to the directions
of, the seller; and the expenses of the re-delivery must be borne by the seller.
Re-sale etc by
buyer
47 Effect of
sub-sale etc by buyer
(1) Subject to this Act, the unpaid
seller's right of lien or retention or stoppage in transit is not affected by
any sale or other disposition of the goods which the buyer may have made, unless
the seller has assented to it.
(2) Where a document of title to goods
has been lawfully transferred to any person as buyer or owner of the goods, and
that person transfers the document to a person who takes it in good faith and
for valuable consideration, then-
(a) if the last-mentioned transfer was
by way of sale the unpaid seller's right of lien or retention or stoppage in
transit is defeated; and
(b) if the last-mentioned transfer was
made by way of pledge or other disposition for value, the unpaid seller's right
of lien or retention or stoppage in transit can only be exercised subject to the
rights of the transferee.
Rescission: and
re-sale by seller
48 Rescission: and
re-sale by seller
(1) Subject to this section, a
contract of sale is not rescinded by the mere exercise by an unpaid seller of
his right of lien or retention or stoppage in transit.
(2) Where an unpaid seller who has
exercised his right of lien or retention or stoppage in transit re-sells the
goods, the buyer acquires a good title to them as against the original buyer.
(3) Where the goods are of a
perishable nature, or where the unpaid seller gives notice to the buyer of his
intention to re-sell, and the buyer does not within a reasonable time pay or
tender the price, the unpaid seller may re-sell the goods and recover from the
original buyer damages for any loss occasioned by his breach of contract.
(4) Where the seller expressly
reserves the right of re-sale in case the buyer should make default, and on the
buyer making default re-sells the goods, the original contract of sale is
rescinded but without prejudice to any claim the seller may have for damages.
PART
5A
ADDITIONAL RIGHTS
OF BUYER IN CONSUMER CASES
48A
Introductory
(1) This section applies if—
(a) the buyer deals as consumer
or, in Scotland, there is a consumer contract in which the buyer is a consumer,
and
(b) the goods do not conform to
the contract of sale at the time of delivery.
(2) If this section applies, the buyer
has the right—
(a) under and in accordance with
section 48B below, to require the seller to repair or replace the goods, or
(b) under and in accordance with
section 48C below—
(i) to require the seller to reduce
the purchase price of the goods to the buyer by an appropriate amount, or
(ii) to rescind the contract with
regard to the goods in question.
(3) For the purposes of subsection
(1)(b) above goods which do not conform to the contract of sale at any time
within the period of six months starting with the date on which the goods were
delivered to the buyer must be taken not to have so conformed at that date.
(4) Subsection (3) above does not
apply if—
(a) it is established that the
goods did so conform at that date;
(b) its application is
incompatible with the nature of the goods or the nature of the lack of
conformity.
48B Repair or
replacement of the goods
(1) If section 48A above applies, the
buyer may require the seller—
(a) to repair the goods, or
(b) to replace the goods.
(2) If the buyer requires the seller
to repair or replace the goods, the seller must—
(a) repair or, as the case may
be, replace the goods within a reasonable time but without causing significant
inconvenience to the buyer;
(b) bear any necessary costs
incurred in doing so (including in particular the cost of any labour, materials
or postage).
(3) The buyer must not require the
seller to repair or, as the case may be, replace the goods if that remedy
is—
(a) impossible, or
(b) disproportionate in
comparison to the other of those remedies, or
(c) disproportionate in
comparison to an appropriate reduction in the purchase price under paragraph
(a), or rescission under paragraph (b), of section 48C(1) below.
(4) One remedy is disproportionate in
comparison to the other if the one imposes costs on the seller which, in
comparison to those imposed on him by the other, are unreasonable, taking into
account—
(a) the value which the goods
would have if they conformed to the contract of sale,
(b) the significance of the lack
of conformity, and
(c) whether the other remedy
could be effected without significant inconvenience to the buyer.
(5) Any question as to what is a
reasonable time or significant inconvenience is to be determined by reference
to—
(a) the nature of the goods,
and
(b) the purpose for which the
goods were acquired.
48C Reduction of
purchase price or rescission of contract
(1) If section 48A above applies, the
buyer may—
(a) require the seller to reduce
the purchase price of the goods in question to the buyer by an appropriate
amount, or
(b) rescind the contract with
regard to those goods,
if the condition in
subsection (2) below is satisfied.
(2) The condition is that—
(a) by virtue of section 48B(3)
above the buyer may require neither repair nor replacement of the goods; or
(b) the buyer has required the
seller to repair or replace the goods, but the seller is in breach of the
requirement of section 48B(2)(a) above to do so within a reasonable time and
without significant inconvenience to the buyer.
(3) For the purposes of this Part, if
the buyer rescinds the contract, any reimbursement to the buyer may be reduced
to take account of the use he has had of the goods since they were delivered to
him.
48D Relation to
other remedies etc
(1) If the buyer requires the seller
to repair or replace the goods the buyer must not act under subsection (2) until
he has given the seller a reasonable time in which to repair or replace (as the
case may be) the goods.
(2) The buyer acts under this
subsection if—
(a) in England and Wales or
Northern Ireland he rejects the goods and terminates the contract for breach of
condition;
(b) in Scotland he rejects any
goods delivered under the contract and treats it as repudiated;
(c) he requires the goods to be
replaced or repaired (as the case may be).
48E Powers of the
court
(1) In any proceedings in which a
remedy is sought by virtue of this Part the court, in addition to any other
power it has, may act under this section.
(2) On the application of the buyer
the court may make an order requiring specific performance or, in Scotland,
specific implement by the seller of any obligation imposed on him by virtue of
section 48B above.
(3) Subsection (4) applies if—
(a) the buyer requires the
seller to give effect to a remedy under section 48B or 48C above or has claims
to rescind under section 48C, but
(b) the court decides that
another remedy under section 48B or 48C is appropriate.
(4) The court may proceed—
(a) as if the buyer had required
the seller to give effect to the other remedy, or if the other remedy is
rescission under section 48C
(b) as if the buyer had claimed
to rescind the contract under that section.
(5) If the buyer has claimed to
rescind the contract the court may order that any reimbursement to the buyer is
reduced to take account of the use he has had of the goods since they were
delivered to him.
(6) The court may make an order under
this section unconditionally or on such terms and conditions as to damages,
payment of the price and otherwise as it thinks just.
48F Conformity with
the contract
For the purposes of
this Part, goods do not conform to a contract of sale if there is, in relation
to the goods, a breach of an express term of the contract or a term implied by
section 13, 14 or 15 above.
PART VI ACTIONS FOR BREACH OF THE
CONTRACT
Seller's remedies
49. Action for
price
(1) Where, under a
contract of sale, the property in the goods has passed to the buyer and he
wrongfully neglects or refuses to pay for the goods according to the terms of
the contract, the seller may maintain an action against him for the price of the
goods.
(2) Where, under a
contract of sale, the price is payable on a day certain irrespective of delivery
and the buyer wrongfully neglects or refuses to pay such price, the seller may
maintain an action for the price, although the property in goods has not passed
and the goods have not been appropriated to the contract.
(3) Nothing in this
section prejudices the right of the seller in Scotland to recover interest on
the price from the date of tender of the goods, or from the date on which the
price was payable, as the case may be.
50. Damages for
non-acceptance
(1) Where the buyer
wrongfully neglects or refuses to accept and pay for the goods, the seller may
maintain an action against him for damages for
non-acceptance.
(2) The measure of
damages is the estimated loss directly and naturally resulting in the ordinary
course of events, from the buyer's breach of contract.
(3) Where there is an
available market for the goods in question the measure of damages is prima facie
to be ascertained by the difference between the contract price and the market or
current price at the time or times when the goods ought to have been accepted or
(if no time was fixed for acceptance) at the time of the refusal to
accept.
Buyer's remedies
51. Damages for
non-delivery
(1) Where the seller
wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may
maintain an action against the seller for damages for
non-delivery.
(2) The measure of
damages is the estimated loss directly and naturally resulting, in the ordinary
course of events, from the seller's breach of contract.
(3) Where there is an
available market for the goods in question the measure of damages is prima facie
to be ascertained by the difference between the contract price and the market or
current price of the goods at the time or times when they ought to have been
delivered or (if no time was fixed) at the time of the refusal to
deliver.
52. Specific
performance
(1) If any action for
breach of contract to deliver specific or ascertained goods the court may, if it
thinks fit, on the plaintiff's application, by its judgment or decree direct
that the contract shall be performed specifically, without giving the defendant
the option of retaining the goods on payment of damages.
(2) The plaintiff's
application may be made at any time before judgment or
decree.
(3) The judgment or
decree may be unconditional, or on such terms and conditions as to damages,
payment of the price and otherwise as seem just to the
court.
(4) The provisions of
this section shall be deemed to be supplementary to, and not in derogation of,
the right of specific implement in Scotland.
53. Remedy for breach of
warranty
(1) Where there is a
breach of warranty by the seller, or where the buyer elects (or is compelled) to
treat any breach of a condition on the part of the seller as a breach of
warranty, the buyer is not by reason only of such breach of warranty entitled to
reject the goods; but he may—
(a) set up against
the seller the breach of warranty in diminution of extinction of the price,
or
(b) maintain an
action against the seller for damages for the breach of
warranty.
(2) The measure of
damages for breach of warranty is the estimated loss directly and naturally
resulting, in the ordinary course of events, from the breach of
warranty.
(3) In the case of
breach of warranty of quality such loss is prima facie the difference between
the value of the goods at the time of delivery to the buyer and the value they
would have had if they had fulfilled the warranty.
(4) The fact that the
buyer has set up the breach of warranty in diminution or extinction of the price
does not prevent him from maintaining an action for the same breach of warranty
if he has suffered further damage.
(5) This section does
not apply to Scotland.
Interest, etc.
54. Interest,
etc.
Nothing in this Act
affects the right of the buyer or the seller to recover interest or special
damages in any case where by law interest or special damages may be recoverable,
or to recover money paid where the consideration for the payment of it has
failed.
PART VII
SUPPLEMENTARY
55. Exclusion of implied
terms
(1) Where a right
duty or liability would arise under a contract of sale of goods by implication
of law, it may (subject to the Unfair Contract Terms Act 1977) be negatived or
varied by express agreement, or by the course of dealing between the parties, or
by such usage as binds both parties to the contract.
(2) An express term
does not negative a term implied by this Act unless inconsistent with
it.
(3) Paragraph 11 of
Schedule 1 below applies in relation to a contract made on or after 18 May 1973
and before 1 February 1978, and paragraph 12 in relation to one made before 18
May 1973.
56. Conflict of
laws
Paragraph 13 of
Schedule 1 below applies in relation to a contract made on or after 18 May 1973
and before 1 February 1978, so as to make provision about conflict of laws in
relation to such a contract.
57. Auction
sales
(1) Where goods are
put up for sale by auction in lots, each lot is prima facie deemed to be the
subject of a separate contract of sale.
(2) A sale by auction
is complete when the auctioneer announces its completion by the fall of the
hammer, or in other customary manner; and until the announcement is made any
bidder may retract his bid.
(3) A sale by auction
may be notified to be subject to a reserve or upset price, and a right to bid
may also be reserved expressly by or on behalf of the
seller.
(4) Where a sale by
auction is not notified to be subject to a right to bid by or on behalf of the
seller, it is not lawful for the seller to bid himself or to employ any person
to bid at the sale, or for the auctioneer knowingly to take any bid from the
seller or any such person.
(5) A sale
contravening subsection (4) above may be treated as fraudulent by the
buyer.
(6) Where, in respect
of a sale by auction, a right to bid is expressly reserved (but not otherwise)
the seller or any one person on his behalf may bid at the
auction.
59. Reasonable time a
question of fact
Where a reference
is made in this Act to a reasonable time the question what is a reasonable time
is a question of fact.
60. Rights etc. enforceable
by action
Where a right, duty or
liability is declared by this Act, it may (unless otherwise provided by this
Act) be enforced by action.
61.
Interpretation
(1) In this Act,
unless the context or subject matter otherwise requires,—
'action' includes
counterclaim and set-off, and in Scotland condescendence and claim and
compensation;
'bulk' means a mass
or collection of goods of the same kind which—
(a) is contained in a
defined space or area; and
(b) is such that any
goods in the bulk are interchangeable with any other goods therein of the same
number or quantity;
'business' includes
a profession and the activities of any government department (including a
Northern Ireland department) or local or public authority;
'buyer' means a
person who buys or agrees to buy goods;
'consumer contract'
has the same meaning as in section 25(1) of the Unfair Contract Terms Act 1977;
and for the purposes of this Act the onus of proving that a contract is not to
be regarded as a consumer contract shall lie on the seller
'contract of sale'
includes an agreement to sell as well as a sale,
'credit-broker'
means a person acting in the course of a business of credit brokerage carried on
by him, that is a business of effecting introductions of individuals desiring to
obtain credit—
(a) to persons
carrying on any business so far as it relates to the provision of credit,
or
(b) to other persons
engaged in credit brokerage;
'defendant'
includes in Scotland defender, respondent, and claimant in a
multiplepoinding;
'delivery' means
voluntary transfer of possession from one person to another; except that in
relation to sections 20A and 20B above it includes such appropriation of goods
to the contract as results in property in the goods being transferred to the
buyer;
'document of title
to goods' has the same meaning as it has in the Factors
Acts;
'Factors Acts'
means the Factors Act 1889, the Factors (Scotland) Act 1890, and any enactment
amending or substituted for the same;
'fault' means
wrongful act or default;
'future goods'
means goods to be manufactured or acquired by the seller after the making of the
contract of sale;
'goods' includes
all personal chattels other than things in action and money, and in Scotland all
corporeal moveables except money; and in particular 'goods' includes emblements,
industrial growing crops, and things attached to or forming part of the land
which are agreed to be severed before sale or under the contract of sale; and
includes an undivided share in goods;
'plaintiff '
includes pursuer, complainer, claimant in a multiplepoinding and defendant or
defender counter-claiming;
“producer” means
the manufacturer of goods, the importer of goods into the European Economic Area
or any person purporting to be a producer by placing his name, trade mark or
other distinctive sign on the goods;
'property' means
the general property in goods, and not merely a special
property;
“repair” means, in cases where there is a
lack of conformity in goods for the purposes of section 48F of this Act, to
bring the goods into conformity with the contract;
'sale' includes a
bargain and sale as well as a sale and delivery;
'seller' means a
person who sells or agrees to sell goods;
'specific goods'
means goods identified and agreed on at the time a contract of sale is made; and
includes an undivided share, specified as a fraction or percentage, of goods
identified and agreed on as aforesaid;
'warranty' (as
regards England and Wales and Northern Ireland) means an agreement with
reference to goods which are the subject of a contract of sale, but collateral
to the main purpose of such contract, the breach of which gives rise to a claim
for damages, but not to a right to reject the goods and treat the contract as
repudiated.
(3) A thing is deemed
to be done in good faith within the meaning of this Act when it is in fact done
honestly, whether it is done negligently or not.
(4) A person is
deemed to be insolvent within the meaning of this Act if he has either ceased to
pay his debts in the ordinary course of business or he cannot pay his debts as
they become due.
(5) Goods are in a
deliverable state within the meaning of this Act when they are in such a state
that the buyer would under the contract be bound to take delivery of
them.
(5A) References in this Act to dealing
as consumer are to be construed in accordance with Part I of the Unfair Contract
Terms Act 1977; and, for the purposes of this Act, it is for a seller claiming
that the buyer does not deal as consumer to show that he does
not.
(6) As regards the
definition of 'business' in subsection (1) above, paragraph 14 of Schedule 1
below applies in relation to a contract made on or after 18 May 1973 and before
1 February 1978, and paragraph 15 in relation to one made before 18 May
1973.
62 Savings: rules
of law etc
(1) The rules in bankruptcy relating
to contracts of sale apply to those contracts, notwithstanding anything in this
Act.
(2) The rules of the common law,
including the law merchant, except in so far as they are inconsistent with the
provisions of this Act, and in particular the rules relating to the law of
principal and agent and the effect of fraud, misrepresentation, duress or
coercion, mistake, or other invalidating cause, apply to contracts for the sale
of goods.
(3) Nothing in this Act or the Sale of
Goods Act 1893 affects the enactments relating to bills of sale, or any
enactment relating to the sale of goods which is not expressly repealed or
amended by this Act or that.
(4) The provisions of this Act about
contracts of sale do not apply to a transaction in the form of a contract of
sale which is intended to operate by way of mortgage, pledge, charge, or other
security.
(5) Nothing in this Act prejudices or
affects the landlord's right of hypothec or sequestration for rent in
Scotland.
This Act is
reproduced with amendments as at 1st October 2003. Crown Copyright
material is reproduced with the permission of the Controller of HMSO and the
Queen's Printer for Scotland.
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