Prepared by:

Mohd Hafizee Shahri

BUSINESS LAW
(ALW10103/BLW10103)
Topic 4

LAW OF SALE OF GOODS

 Topic Outline

Classification
Definition
of goods

Implied
terms
Introduction

• Sale of goods vs Real

property
transactions.
– risk should not always
pass with title.
The Act

Sale of Goods
Act 1957
 Definition
Goods

• Sec. 2 of SoGa: Every kind of MOVABLE

PROPERTY.

Sale of goods

• A contract whereby the SELLER TRANSFERS or

agrees to transfer the property in GOODS TO
THE BUYER for a PRICE.
Classification of Goods – sec. 6

Existin • Goods are IN

g POSSESSION of the
seller.
goods

Future • Goods to be
MANUFACTURED or
goods PRODUCED.
Express Term vs Implied Term
 Implied Terms
Implied condition as to • Seller has RIGHT TO SELL.
title

Implied condition in sale • The goods shall CORRESPOND with the

of description description.

Goods must be • Buyer makes known to the seller the PARTICULAR

reasonably fit for purpose PURPOSE for which the goods are required.

Goods must be of • The goods must reasonably CONFORM to an

merchantable quality ordinary buyer's expectations.

Implied condition for sale • Goods sold are AS GOOD AS one shown to the
by sample buyer as a sample.
Remedies for Breach

Remedies

Unpaid Remedies
seller of the buyer
 Unpaid Seller

Whole of the
price has not
been paid
Who?
Negotiable
instruments
being
dishonored
 Remedies for Unpaid Seller

Lien – sec. • to retain possession until payment

46(1)(a) or tender of price by the buyer.

Stop transit – • In case of the insolvency of the

sec. 46(1)(b) buyer.

Resale – sec. • Perishable goods.

46(1)(c)
 Remedies for Buyer

Damages – • Compensation for non-

sec. 57 delivery.

Specific • Court order against seller

performance
to deliver the goods.
– sec. 58
 Summary
• Sale of goods involved the transfer of title for
goods from one to another.

• It does not refer to any property e.g. land and

building where it involves different method in
transferring the good title.