SALE OF GOODS CONTRACT QUESTIONS

1 What condition is implied when a contract for the sale of goods includes a description?
2 Under the Act there are implied conditions of merchantable quality and fitness for purpose.
True/False?
3 For specific goods, when does the transfer of ownership between buyer and seller take place?
4 Mukuni put up a poster with the words ‘‘ Brand new Ford Ranger, orange in colour, 2021
model, for sale at K1,200,000 Cash . Mukuni’s action is known as:
A. An advertisement
B. An offer to sell
C. A contract for sale of motorvehicle
D. An invitation to treat
5 A contract of sale is ……………
A. Where ownership of goods is transferred from the seller to the buyer immediately from the
seller to the buyer for money consideration called the price.
B. Where ownership of the goods is subject to some condition to be fulfilled.
C. Where ownership of the goods is to be transferred at a future time.
D. Where ownership will be transferred upon payment by cheque or cash
6. Rita’s car was stolen by Webster who sold it to Toyota Zambia the car dealers. Toyota
Zambia sold it to Lipo. According to Section 25 of the Sale of Goods Act 1893 on transfer of
title…
A. Title passed to Lipo when Toyota Zambia sold the car to her.
B. Lipo had not acquired a good title to the car as the transaction was not a contract of sale
within the meaning of the law
. C. Toyota Zambia became the owners as they bought the car without defects from Webster.
D. Webster acquired good title the moment Rita knew that it was him who stole the car.
7. The Sale of Sale of Goods Act has a number of implied terms and conditions; these are
provided for the smooth running of trade.
Required:
(a) Highlight any four (4) implied terms in the Sale of Goods Act of 1893. (4 marks)
(b) List any four (4) types of torts. (4 marks)
(c) Outline ways by which a custom can be valid at law. (8 marks)
(d) Define an invitation to treaty and give an example. (4 marks)
8
( 2021 december answers)
8. Muriel entered into an unconditional contract for the sale of specific goods in a deliverable
state. No agreement was reached as to when title passed to Muriel. When does the Sale of Goods
Act 1893 provide that title shall pass?
A. When the contract was made
B. When Muriel takes possession of the goods
C. When Muriel states that she accepts the goods
D. When Muriel pays for the goods
9. Mulenga’s bicycle chain broke and he went with it to the Bike Auto-shop which stocked spare
parts for bicycles. Mr. Patel looked at the chain once, and told Mulenga that it would cost him
fifty kwacha. Mulenga paid and a packed chain was delivered to him. But when he tried to
mount the chain on the bicycle, it could not fit because it was too short. He returned it to the shop
where he was shown a disclaimer at the back of the receipt that ‘goods once sold, are not
returnable’.
Required:
(i) State the nature of contract described in this transaction. (2 marks)
(ii) State three (3) conditions that the seller may have breached. (6 marks)
(December 2018)

9 Which of the following statements is/are incorrect?

(i) Legal title cannot pass on a contract induced by misrepresentation
(ii) Misrepresentation renders a contract voidable
(iii) A victim of negligent misrepresentation may seek rescission and damages
A. (i) only
B. (ii) only
C. (i) and (iii)
D. (ii) and (iii)
10 Identify which remedy does not exist for unpaid seller under the Sale of Goods.
A. A lien on the goods.
B. Stoppage on transit
C. A right of resale
D. Rejection of the goods
11 Chilli Boy wants to celebrate his birthday in a proper village setting, and heads off to
Mafinga, in the far North East of Zambia. He indicates to one of the shop attendants of the Kob
chain shops that he wants to buy decorations for the party. The attendant replies that they did not
have that particular decoration, but they can improvise. Chilli Boy accepted and paid for the
package. He decorates the village hall nicely but before the party begins, the wind blows the
humid air into the hall and all the toilet paper which had been used for decoration disintegrates.
Chilli Boy blames the shop for the mess, but the shop insists that “caveat emptor”.
(i) Define ‘caveat emptor (2 marks)
(ii) Explain the term that has been violated above (5 marks)
(iii) Discus any remedies available to the buyer from the above facts
(3 marks

12 It has been agreed that that the principal is bound by the acts done by the agent under a
contract. However, the position may change when the principal is not disclosed or when the
principal does not give express authority.
Required:
(a) Explain circumstances under which a principal may be bound by a contract entered into
by an agent on his behalf without his express authority.
(June 2019)
13 What is not classified as goods under the Sale of Goods Act of 1893?
A. Furniture B. Electricity C. Water D. Money
14 Jimaima, the ‘ Honda Man ’ as he is popularly known by the people in his compound, sells
motorbikes and motorbike spares. He is trading as ‘Honda Yamoto’. Jimaima also repairs
motorbikes and runs a motorbike riding school.
One of his loyal customers by the name of Odia asked him on phone which bikes he had and he
said he had ‘2019 model of Honda and Yamaha motorbikes’. Based on that, Odia sent him the
money for a ‘ Honda Motorbike 2019 Model’. However, The ‘Honda Man’ sent her a ‘2018
Honda Motorbike’ which is essentially the same as the one he told her on phone, except on the
fact that the 2018 model had a shorter chassis than the 2019 model. Odia is not happy and has
come to you for advice as to whether she should take this matter to court or not.
(a) In an event that you decided to advise her to sue, do you think she can succeed?
(10 marks)
(b) Last week Monday, Jimaima’s Honda Yamoto sold two motorbikes to Evelyn who promised
to pick them on Tuesday morning, but did not show up. On Friday, she called that she was on the
way and would be at Honda Yamoto by 13:00 hrs. Jimaima told 108 her that, since Friday was a
half day knocking off at 12:00 hours, he would leave them with the security guard at the gate and
she would find them there and she agreed. At 15:00 hours, there was a fight on the road near the
shop and the guard went to watch the street fight, in the process the bikes were stolen. Evelyn
came at 17:00 hrs to get the bikes and was surprised to be told that the bikes had been stolen.
Evelyn now wants her money back for the two stolen motorbikes or be given other motorbikes as
replacement, which Jimaima has refused.

Required: Advise her as to whether she will succeed in her claims or not. (10 marks)
15 Ms. Fridah, runs a transport business called Tamanga Buses Ltd, she has properly instructed
her employees not to over speed or rather not to drive over 80km/h. One day One Joze, a bus
driver for Ms. Fridah, whilst driving decided to drive at 100km/h in order to arrive early at a
certain named bus station in Lusaka, to be the first to pick customers as he was informed by one
of his conductors that there are 10 shorts (10 would be passengers). In trying to drive fast he
negligently collided with Braun Hatonbo’s Toyota vits, Braun decides to approach Ms. Fridah
for the damage caused to his vehicle. He was told by Ms Fridah that she had instructed her bus
drivers on how to drive and that it was not her fault. Braun was told to go wherever he wanted
but would not be given a single coin. Braun is confused as he just bought the vehicle.

Required:
(a) Explain to Ms. Fridah why she has to fix Braun’s car (8 marks)
(b) Explain the importance of the Sales of Goods Act 1893 (6 marks)
(June 2021)
16 A contract of sale is ……………
A. Where ownership is transferred immediately from the seller to the buyer upon the goods being
appropriated to the contract.
B. Where ownership of the goods is subject to some condition to be fulfilled.
C. Where ownership of the goods is to be transferred at a future time.
D. Where ownership will be transferred upon payment by cheque or cash.
(2 marks)

17 Rita’s car was stolen by Webster who sold it to Toyota Zambia the car dealers. Toyota
Zambia sold it to Lipo. Which principle is therefore applicable under the sale of goods Act.
A. Bona fide purchaser for value without notice.
B. Stare decisis.
C. Property in the goods principle.
D. Caveat emptor principle.
18 Differentiate a contract of sale from an agreement to sell. (3 marks)

19 The contract of Sale of goods Act has a number of implied terms and conditions; these are
provided for the smooth running of trade.

Required:
(a) List any four (4) implied terms in the contract of Sale of Goods Act. (4 marks
(March 2022)
20 What amounts to consideration in a Sale of Goods Contract?
A. Price B. Money paid C. Anything of value exchanged D. Goods
21 Explain the importance of the Sales of Goods Act 1893. (10 marks)
22 Identify the ways in which delivery of goods can be done in contract of Sale.
(4 marks
(September 2021)
23The United Bank of Zambia intends sell three acres of land belonging to Zingalume College of
Commerce which it had pledged as security for its 30,000 kwacha loan from United Bank of
Zambia. Which of the following statutory exceptions to the ‘nemodat quod non habet’ rule was
invoked by the Bank?
A. Sale by estoppel.
B. Sale under voidable title.
C. Sale under special common law powers.
D. Sale by an agent.
24 Jimmy Daka was employed as a driver by the Ministry of Health. He was placed under the
supervision of a tough man, Guy Mbombo to whom he reported and left the keys with every day
he knocked-off. Guy instructed him that whenever he went up country, he had to park the vehicle
by 17 hours at the nearest police station. On a journey from Lusaka to Lundazi via Chipata,
Jimmy decided that he would stay with his in-laws in Chipata before proceeding to Lundazi. His
in-laws assured him that their premises were guarded ZAMCO, a renowned security firm in
Chipata. On this assurance, he parked the government vehicle in the garage of his in-laws and
slept in the Guest wing. He woke up to discover that all the tyres had been stolen at night. The
security guard insists that he did not see or hear anything.
Required:
(a) Render your legal advice to Jimmy as to who is liable for the loss of the tyres.
(10 marks)
(b) Distinguish between quality of fitness and fitness for purpose in relation to the Sale of Goods
Act 1893. (10 marks)
(December 2019)

25 Loveness rented a one roomed apartment in Kalingalinga Compound from Bull

Kasonkomona a street vendor. She explained to him that she intended to use the room to sell sex
during the day when he was at work. Bull demand an advance payment of six months, but she
paid for three months, promising to pay the balance later. She never paid the balance because
business was bad. Bull sued Loveness for the arrears in the Court, but the court declined to
attend to the dispute. The most likely reason for the court’s attitude is that
A. The agreement was unenforceable in absence of the subject matter.
B. The agreement was not valid between the parties.
C. The agreement was illegal as it was contrary to public policy.
D. The agreement was void for mistake.
26 Why is it important to know when property in the goods under the contract of sale passes
from the seller to the buyer?

A. To establish when the contract is made.

B. To determine who should bear the risk of loss or damage to the goods.
C. To identify the party in possession of the goods at the time of sale.
D. To classify the type of goods being sold.
27 The Romalpa Clause which emanated from the case Aluminium Industrial Vaasen BV v
Romalpa Aluminium Limited, 1976, performs the following role:

A. The retention of title by the buyer.

B. The retention of title by the seller.
C. The intention of parties in passing title.
D. The disposition of a buyer in possession. (2 marks)
28 Chipange Banda, an accountant, agreed with Sidney, that Sidney would redecorate
Chipange's business premises for K2,000. The written contract provided that all woodwork
would be properly prepared for painting prior to the application of paint and no paint containing
lead would be used. Sidney completed the work, but he used paint containing lead in one of
Chipange's offices. Chipange suffered an allergic reaction due to the lead paint and could not
work for a long period, during which he lost K30,000 in income. Chipange knew of her allergy
to lead, and that was the reason he had specified that paint containing lead should not be used.
However, he failed to mention this reason to Sidney. Chipange also discovered that in three of
his offices the woodwork was not prepared for painting before paint was applied. He now seeks
your advice
Why is it important to determine the exact time in which property in the goods passes to the
purchaser