Sales of Goods Law

The Sale of Goods Act 1979 is the primary legislation that helps buyers obtain redress when their purchase needs amending. It is in the interests of a merchant to understand the implications of the Sales of Goods Act and the responsibilities and terms under which they conduct trade. Below is a list of the responsibilities that should be paid heed to; for further information regarding your own business, please consult a commercial lawyer.

• The seller has the right to sell the goods and verifies that they are free from encumbrances or charges and that the buyer will enjoy quiet possession
• The goods will correspond to their description
• The goods will be of satisfactory quality
• If the buyer makes known the purpose of the purchase, that the goods will be fit for that purpose
• Where goods are sold by sample, they will comply with that sample
• The seller will supply satisfactory quality goods which are fit for the purpose that they were purchased for
• The seller must transfer possession by delivering goods in accordance with the terms of the contract

Any breach of the above terms and conditions would amount to a breach of contract and entitle the purchaser to reject the goods and seek reimbursement of the purchase price or claim damages.

The sale of goods involves transferring possession by delivering goods in accordance with the terms of the contract i.e. on time and at the place agreed or, in the case of no agreement, at the seller’s place of business and at a reasonable time. It is important for international business and consumers to note that this rule applies in countries with a free economy. In command economies and socialist states, the sale of goods among state enterprises transfers not ownership but merely the right of administration.

Should the seller fail to comply with his duties implied by law, the buyer would have a right to recourse. The remedies available and set out below are in addition to any remedies they may have been provided by a commercial guarantee or warranties.

• Rejection and termination of the contract(s)
• Damages
• Refusal to perform own obligations
• Specific performance of sellers obligations

Businesses will often use their compliance to requirements to enhance customer relationships and public image.

While the Act is most commonly used in the application of protecting consumers, it also applies to the sale of goods between businesses, B2B sales. For more detailed information as well as how the sale of goods law applies to you, please consult a lawyer today.