The sale of goods contract is the most commonly occurring contract type with a countless number of contracts being entered into every day. The sale of goods concerns a contract where the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, namely the price.
Goods are often subject to dispute as they can be categorised as specific goods, generic goods, quantity of goods and future goods which do not exist yet. The distinction between the various types are important when acting as a consumer in the purchase of goods as it may effect your future rights.
Often in consumer contracts the main concern for both parties will be that the contract works for them financially. The seller will want to ensure that the price is right and the payment is prompt, once the goods are delivered the buyer will want to ensure that they have got what it paid for.
Duties are imposed on the buyer and seller when entering into a consumer contract which are not considered for example when purchasing an item of clothing from a shop, failure to perform these duties gives rise to statutory remedies over and above ordinary contractual remedies.
There are several duties imposed on the seller of goods:
– To deliver the goods;
– To deliver the correct quantity;
– To pass good title; and
– To deliver goods which correspond with their description, are of satisfactory quality and correspond with any previous sample given.
There are several duties imposed on the buyer of goods:
– To accept delivery; and
– To pay for the goods.
The rights of the seller include:
– To terminate the contract for a breach of condition;
– Action for the price which has not been paid;
– Damages for non-acceptance; and
– Retain title of the goods until full payment has been made.
The rights of the buyer include:
– To inspect the goods;
– To reject the goods and refuse payment for a breach of a condition;
– Damages for non-delivery;
– Damages when the goods are accepted; and
– The request of specific performance.