The Scope of the Sale of Goods Act 1979
SGA applies to “contracts of sale of goods” (s.1)
SGA 1979, s.2(1)
“A contract of sale of goods is a contract by which the seller transfers or agrees to transfer
the property in goods to the buyer for a money consideration, called the price.”
Essential components of a contract of sale of goods:
4 things that need to apply for the sale of goods act to apply.
1. Contract
2. Transfer of property or agreement to transfer property
3. Goods
4. Money consideration – has to be money not a trade, must be money changing
hands or act does not apply.
1. Contract
Must be entered into voluntarily – NORWEB – SGA couldn’t apply because
statute intervened in the contractual process.
SGA 1979, S61
‘Contract of sale’ includes sale and agreement to sell
SGA 1979, s.2(3)
‘may be absolute or conditional’
Does cover:
Absolute – I offer a pound for your coffee, exchange, deal done
Conditional – performance of contract delayed until conditions are met
Credit sale agreement – price paid in instalments, but title immediately passes to buyer.
Doesn’t cover:
Hire purchase contract - pay in instalments, once pay final instalment
have the option to purchase the goods. Helby – not covered by SGA
Charge/mortgage – not covered
2. “…the seller transfers or agrees to transfer the property…”
Transfer of property:
SGA 1979, s.61(1)
“the general property in goods, and not merely a special property”.
SGA applies to “contracts of sale of goods” (s.1)
SGA 1979, s.2(1)
“A contract of sale of goods is a contract by which the seller transfers or agrees to transfer
the property in goods to the buyer for a money consideration, called the price.”
Essential components of a contract of sale of goods:
4 things that need to apply for the sale of goods act to apply.
1. Contract
2. Transfer of property or agreement to transfer property
3. Goods
4. Money consideration – has to be money not a trade, must be money changing
hands or act does not apply.
1. Contract
Must be entered into voluntarily – NORWEB – SGA couldn’t apply because
statute intervened in the contractual process.
SGA 1979, S61
‘Contract of sale’ includes sale and agreement to sell
SGA 1979, s.2(3)
‘may be absolute or conditional’
Does cover:
Absolute – I offer a pound for your coffee, exchange, deal done
Conditional – performance of contract delayed until conditions are met
Credit sale agreement – price paid in instalments, but title immediately passes to buyer.
Doesn’t cover:
Hire purchase contract - pay in instalments, once pay final instalment
have the option to purchase the goods. Helby – not covered by SGA
Charge/mortgage – not covered
2. “…the seller transfers or agrees to transfer the property…”
Transfer of property:
SGA 1979, s.61(1)
“the general property in goods, and not merely a special property”.
