FACULTY OF BUSINESS AND MANAGEMENT

UNIVERSITI TEKNOLOGI MARA, TERENGGANU

LAW416
BUSINESS LAW

TITLE:
ASSESSMENT 3
SALE OF GOODS

PREPARED FOR:
MADAM NOORIMAH BINTI MISNAN

PREPARED BY:

NAME STUDENT ID CLASS

NUR BALQIS BINTI KHAIRI 2022905719 TBA2421B
NORATIRAH BINTI MOHAMAD JAFRI 2022787041 TBA2421B
NUR NABILA BINTI MOHD ZAINI 2022782571 TBA2421B
MUHAMMAD ZAMIL AIMAN BIN ABDULLAH 2022931251 TBA2421B

DATE OF SUBMISSION:
JANUARY 8, 2023
QUESTION 1
Datin Maria ordered two boxes of chocolate cupcakes with peppermint frosting and chopped
chocolate from Manis Bakery for her daughter’s birthday celebration. When the cakes were
delivered, Datin Maria discovered that they were all identical to the sample she saw at the
bakery when she placed the order. Unfortunately, when she tasted the cake, she discovered
that it was chocolate cake with peppermint and walnut frosting. Datin Maria wants to reject
the cupcakes because her daughter is allergic to walnuts.
Advise all parties.

ISSUE
The question is on sale of goods. The issue is whether Datin Maria can reject the cupcakes
from Manis Bakery for breaches.

LAW
Sale of Goods is defined in section 4(1) of the Sale of Goods Act 1957 (SOGA) is a contract
whereby a seller transfers or agrees to transfer the property in goods to buyer for a price.
Since the relationship between seller and buyer is a contract, there are certain terms of the
contract that must be fulfilled by the seller. According to section 17 under the Sale of Goods
Act 1957 implied condition as to sale by sample. There is the contract for the sale of goods
by description that usually the buyer will look at the sample when there is a sale of goods in
bulk, such as rice, flour, tiles, carpet, cookies and more. According to section 17(2), if the
goods are sold by sample, there are three conditions which independent of one another. The
first one is the bulk of the goods must correspond to the sample in terms of quality. Next, the
buyer must have a reasonable opportunity to compare the bulk with the sample and the last
one is, all the goods shall be free from any defect rendering them unmerchantable. If the any
one of the conditions is violated, the buyer can reject the goods and end the contract. As in
the case Drummond V Van Ingen, the cloth supplied by the seller was equal to the samples
previously examined. However, there was latent defect not discoverable by a reasonable
examination. The seller was held liable because even though the bulk corresponds with the
sample, there was a latent defect rendering the goods unmerchantable. The buyer was
entitled to reject the whole goods.

APPLICATION
According to this case, The seller was Manis Bakery, and the buyer was Datin Maria. All the
goods shall be free from any defect rendering them unmerchantable as in section 17 (2),
because Datin Maria described that she ordered two boxes of chocolate cupcakes with
peppermint frosting and chopped chocolate. However, the Manis Bakery breached the
conditions when they sent different kinds of flavored, which were chocolate cake with
peppermint and walnut frosting was met, it does not correspond to the description. Applying
section 17(2) and in Drummond V Van Ingen case, Datin Maria could refuse to accept the
goods and can reject the cake.
CONCLUSION
In conclusion, Datin Maria can reject the cake from Manis Bakery and also can terminate the
contract. Manis Bakery also must replace the cake to Datin Maria. ….