BT20403 COMMERCIAL LAW, SEMESTER 2, 2022/2023

TUTORIAL: Sale of Goods

1. Distinguish between a contract of sale (pd masa itu) and an agreement to sell( later) . Provide
example(s) to illustrate the differences.

2. With reference to the Sale of Goods Act 1957, explain the differences between the terms warranty
and conditions.

Determine is it
1.warranty and condition ?
2.

Xavier purchased a brand new smartphone from Marco, owner of an electronics store in Kuala Lumpur. The
smartphone was advertised as having a 128GB storage capacity and a high-resolution display. However, upon
receiving the smartphone and inspecting it, Xavier discovered that it only had a 64GB storage capacity and a lower
3. resolution display than what was advertised. Xavier contacted Marco to request a replacement or a refund, which
Marco refused, claiming it was a typographical error in the advertisement. Advise Xavier on his rights under the
Sale of Goods Act 1957.

S.15 : The goods correspond with the description

If goods are sold to a buyer ‘by description’, then they must correspond with that description.

Issue: There was a contract for smartphone was advertised as having a 128GB storage capacity and a high-resolution
display. The buyers were entitled to reject the goods when smartphone contained only had a 64GB storage capacity
and a lower resolution display than what was advertised. The goods did not correspond with the contractual
description.

Tingtong is interested in buying a new set of sofa. When he visited a furniture shop, Pannarai
Prakaimas Wassana Chalalai, he was interested in a set called ‘Cherry Blossoms’ but did not like the
cushions’ cover. Mr Pancake, the owner of Pannarai Prakaimas Wassana Chalalai, has agreed to
4. change the cover following Tingtong’s instruction; namely, it must be made of 100% leather.
However, Tingtong was disappointed when he noticed that the cushions’ cover that had been sent to
his house were not 100% leather. Tingtong also notices that the size of the sofa was smaller than
the ones being displayed in the showroom. Tingtong seeks your advice on the legal implications of
the above matter. Advise Tingtong on his rights under the Sale of Goods Act 1957.

Types of goods under SOGA(3):

Future goods: Goods to be manufactured, produced or acquired by the seller after the making of contract of sale with the buyer.

Jericho is a farmer who sells seasonal fruits. On 10 May 2023, Jericho sold 100 kilograms of mangoes
5. to Nadine and agreed to deliver the mangoes to Nadine on 15 May 2023. Nadine paid the purchase
price of 100 kilograms of mangoes on 12 May 2023. Jericho set aside 100 kilograms of mangoes on
13 May 2023 for Nadine. Unfortunately, a fire broke out in Jericho’s fruit storage warehouse on 14

1/2
 May 2023. The fire consumed all the fruits stored inside, including the 100 kilograms of mangoes
reserved for Nadine. Advise Nadine on the legal implications of the matter with reference to the Sale
of Goods Act 1957.

Goods Perish

- S8 after
- S7 before
6. Explain the Nemo Dat rule and its exceptions with reference to relevant statutory provisions under
the Sale of Goods Act 1957 and decided cases.
-Only the right have transfer the goods title
- cannot get the goods if not the right owners

Merry, Pipin and Sam are University students. Due to limited funds, they have agreed to spend
7. RM1000 each to buy a laptop of which they will be co-owners. Pipin was allowed to keep the laptop
during the semester break while Merry and Sam were away for a study trip. However, Pipin sold the
laptop to his roommate, Frodo, without consulting Merry and Sam. Merry and Sam are upset with
Pipin’s action and want to recover the laptop from Frodo. Advise the parties involved regarding their
legal rights to the laptop.

Transfer of Tittle

Sale by 1 of joint owners

S.28 SOGA:

‘’If one of several joint-owners of goods has the sole possession of them by permission of the co- owners, the property in the goods is transferred
to any person who buys them in good faith and has no notice at the time of the contract that the seller has no authority to sell.”

2/2