Sale of Goods - introduction


The governing statute as to Peninsular Malaysia is the Sales of Goods Act 1957 (Revised 1989) which was modeled after the English SoGA 1893 almost in its entirety.
Sabah and Sarawak - still apply the English SOGA 1979 (which replaced the 1893 Act) by virtue of Sec 5(2) of Civil Law Act 1956.- “that the law to be administered shall be to same as would be administered in England in the like case at the corresponding period”
English SoGA 1979 come into force on January 1980. It is a consolidating statute and replaces SoGA 1893 and parts of a number of other statutes. The wording of the current English Act is not identical with that statutes that it consolidates.
SoGA does not provide a complete law and operates against the background of the law of contract
Sec 3 of SoGA - provides for the application of Contract Acts where relevant as long as it does not contradict SoGA itself - in which case the latter would prevail.
Scope of SoGA -applies to all types of sale of goods but is not comprehensive in covering all aspects of sale or offer adequate protection to the parties involved.


Sec 4 (1)
“ A contract of sale is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part- owner and another”.

Price - the money consideration for a sale of goods (sec 2) and may be fixed by the contract, or by a third party or determine in the course of dealing - Sec 9 (1).
It is clear that a contract of sales involves transfer of property and money as consideration. If the  considerations is goods alone (barter system) the act does not cover
If none of the methods is used - pay a reasonable price depending on the circumstances.

Sale must be distinguished from agreement to sell.
Sec 4 (3) :
“where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale, but where the transfer of the property in the goods is to take place at a future time or subject to some agreement to be fulfilled, the contract is called an agreement to sell”.
Sec 4 (4) :
“ agreement to sell becomes a sale when time elapses or condition fulfilled”

Difference btw sale and ATS - in term of remedies in case of breach.
Sale occurred when there’s transfer of ‘property’ or ownership. Ownership is different from possession. When the seller register the buyer name in the a car registration document with Road Transport Department it is called transfer of ownership, even the car is not yet deliver to the buyer. Delivery of the car is a transfer of possession.

Elements of the contract:
1. Parties to the contract - must fulfilled all the capacity as required under CA.
2. Transfer of property in the goods sold - not only transfer of possession  but also ownership.
3. Price as consideration of the contract.
4. Subject matter is within the definition of ‘ goods’.

            Sec 2 - every kind of movable property other than actionable claims and money, and includes stocks and shares, growing crops …and things attached..which are agreed to be severed before sale

Sec 6 (1) - goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller or future goods.
Future goods - goods to be manufactured or produced or acquired by the seller after the making of the contract.

Goods may also be ascertain (specific) or unascertained. Specific goods - if they are identified  and agreed upon at the time of contract. However, it depends on the kind of goods. Cars must be specified by the registration number and chasis number. We can make inspection to make it specific.

Perishing goods  
Sec 7 - contract void if the subject matter perished before the contract entered into without knowledge of the seller

RENDELL v TURNBULL (1908) 27 NZLR 1067
      It was held that a contract for the sale of potatoes described as ‘table potatoes’ was void. By reason of a second growth, the potatoes had become unfit for human consumption at the time of contract and therefore ceased to the ‘table potatoes’.

If the goods perished after Agreement To Sale but before sale as to no longer able to answer to description - contract voidable (Sec 8)
Sale of Goods - introduction Sale of Goods - introduction Reviewed by Kamaruddin Mahmood on 9:28:00 PTG Rating: 5

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