Sale of Goods

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Sale of Goods by Mind Map: Sale of Goods

1. Definition - Section 4 (1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.

2. Contracts :

2.1. (1)Objectives - For Money Consideration.

2.2. (2) Section 4 (3) - Sales occur when the ownership or property in goods passes to the buyer. (seller and buyer)

2.3. (3) Section 4 (4) - Agreement to sell.

3. Goods

3.1. Section 2 - Every kind or movable propety other than actionable claims and money.(included stock and shares, tangible movable properties)

3.2. Excluded from being goods - Land , Actionable claims, Money, and Services such as repair or labour.

3.3. Classifications of Goods

3.3.1. (1) Existing goods

3.3.2. (2) Future goods

3.3.3. (3) Specific goods

3.3.4. (4) Unascertained goods

3.3.5. (5) Ascertained goods

4. Formation

4.1. Section 5 (!) & Section 5 (2)

5. Fixing the Price

5.1. (1) It may be stated in the contract.

5.2. (2) It may be left to be fixed in a manner provided in the contract.

5.3. (3) It may be determined by reference to the course of dealings between the parties.

5.4. (4) If none of these apply, a buyer must pay a 'reasonable price' for the goods he receives.

6. Conditions and Warranties

6.1. Section 12 (2) - A condition as ' a stipulation essential to the main purpose of the contract, the breach of which gives rise to a right to treat the contract as repudiated.'

6.2. Section 12 (3) - A warranty is collateral to the main purpose of the contact, the breach of which give rise to a claim for damages but not the right to reject the goods and treat the contract as repudiated.

7. Implied terms

7.1. (1) Implied condition as to title under Section 14(a).

7.2. (2) Implied warranty that the buyer shall have quiet possession of the goods under Section 14(b).

7.3. (3) Implied warranty that the goods are unencumbered under Section 14 (c).

7.4. (4) Implied condition that in sale of goods by description, the goods must correspond with the description under Section 15.

7.5. (5) Goods must be reasonably fir for purposes for which the buyer wants them Section 16(1)(a).

7.6. (6) Goods must be of merchantable quality under Section 16(1)(b)

7.7. (7) Sale by Sample under Section 17.