What does the Sale of Goods act apply to? s.2(1), SOA 2003 − Transfer of property
− In goods • Does software count? Green & Saidou (2007) Yes because you can delete it off your computer and licensing restrictions doesn’t mean you don’t own it. − For a price in money CLASSIFYING GOODS
I.
Specific v Unascertained goods, per s.61(1) SGA 1979 − Specific goods
• Goods identified and agreed on at the time of sale • Kursell v Timber Operators & Contractors (1927) sold all trees which conformed to certain measures on a particular date. They were identifiable, but not identified, so not specific. (Merrett doubts this)
• This INCLUDES an undivided share specified as a fraction or percentage of goods identified A) 50% of th3 100 bottles of wine specific goods B) 50 of 100 bottles of wine unascertained goods
− Unascertained goods • Goods not identified • Includes A) Generic goods sold by description B) Goods not yet in existence C) Goods which are in existence but are not identified PASSING OF PROPERTY
I.
Why is this important? − Risk passes with property
− Seller can’t sue for the price until property has passed (if before, the seller’s remedy is a damage for nonacceptance) II.
Specific Goods − They are transferred when the parties intend it to be transferred s.17, SGA 1969
− If there is no expressed intention it is transferred when the parties intend it to be transferred s.18, SGA 1969 • Although in practice very little is needed to give rise to the inference that property in specific goods is to pass only on delivery or payment Ward v Bignall (1967) per Diplock LJ − The unconditional sale of specific goods
• S.18, Rule 1 – an unconditional contract for the sale of specific goods, in a deliverable state A) Effect – property passes when the contract is made (1) And it is immaterial whether the time of payment or delivery or both be postponed, although that may indicate a contrary intention
B) Requirements (1) An unconditional contract (most important condition is as to payment (2) Specific good (3) Deliverable state (a) S.61(5) SGA 1969 if they are in such a state that the buyer would under the contract be
bound to take delivery – but does not say goods are NOT deliverable if buyer not bound to take delivery (b) Underwood v Burgh (1922) 30 ton engine cemented to floor. Not deliverable. (c) Philip Head v Showfronts (1970) S sold carpet to B which they were required to lay. Carpet was stolen after sale but before sellers laid it. Held not deliverable. (d) Goode – fruit ready for picking is in a deliverable state − Certain conditional sales of specific goods
• S.18, Rule 2 – the seller is bound to do something to put them in a deliverable state