The Sale of Goods Act: Key Elements and Impact

The Sale of Goods Act is a legislation that governs transactions for the sale of products in Australia. The study identifies five key elements: contract of sale, transfer of property, goods, money consideration, and provides an overview of how these elements interact within the context of Australian business law.

Goods and Contract Law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
(a) Discuss the following legal relationship ................................................................................1
(b) Breach the contract Blackboard or PosterPLUS or both .......................................................2
(c) Law of contract and law of sale of goods ..............................................................................2
CONCLUSION ...............................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
A contract of sale of goods is the declaration whereby seller transfer the ownership in
products to buyers or agrees to transfer it to purchaser for the price. The Australian contract law
concerns the legal enforcement of promises which were created as part of bargain freely come in
forming legal relations known as contract (Cartwright, 2016). This case study is based on
Blackboard Pvt. Ltd. It is the small suppliers in n vinyl film in the Australia. Report will explain
the legal relationship between Blackboard and PosterPLUS, Poster PLUS and SEASTROM
Containers Ltd., Blackboard and SEASTROM Containers Ltd.
MAIN BODY
(a) Discuss the following legal relationship
For identification of legal relationship, there are many element involving in it such as:
Agreement:
The existence of an agreement among the parties is usually analysed through rules of
offer and acceptance. This can be declared as the clear denotation that is offer by one party like
Blackboard of willingness top be bound on certain terms attended by the interactions by other
party that is Poster Pvt. Ltd. to offerer of an unqualified to that offer. An offer indicates an
intention by the offerer to be bound without further discussions and negotiation on acceptance of
the term set out (McKendrick and Liu, 2015).
Consideration:
It is the necessary element for formation of contract. A promise will be enforceable as
contract only if it is founded by consideration. It can be anything from money to promise to
undertake or not undertake particular act even simple flavourer can serve. Consideration means
that promise is given in return for the received promise. Likewise, Blackboard is promised to
PosterPLUS in relation to supply the Posters PLUS over 12 months period.
Capacity:
It is the also necessary element for formation of contract. Contractual capacity means to
the ability of part to enter into legally binding contract. If there is lack of ability to contract, an
agreement can be provide void (Svantesson, 2016). In this case study, all the parties like
Blackboard Pvt Ltd,, Posters PLUS and SEASTROM Containers Ltd.
Intention:
1

It is also necessary element for formation of contract. The parties can make intention to
make legal relations. The intention needs has been approached on the basis which parties to
commercial set up are presumed to intend legal consequences. In this case study,
Certainty:
It is the last element which is also necessary to formation of contract. For contract
formation, the agreement can be sufficiently certain and sufficiently complete which the parties
rights and obligations can be determined and enforced (Giancaspro, 2017).
(b) Breach the contract Blackboard or PosterPLUS or both
In this case study, Blackboard entered into the contract with PsoterPLUS Pvt. Ltd. to
supply PsoterPLUS with cast vinyl flim over 12 month period. But, between Novemeber 2017
and June 2018, Blackboard supplied PosterPLUS with vinyl film to the value of the $200000
pursuant to the contract. Due to cheaper products, less comfortable and thicker as well as
insufficient amount of ultraviolet stabilizer has been added to it during the manufacturing
procedures (Ginzberg, 2017). The reason is to breached of contract is to lesser supply of
PosterPLUS in between the 12 month and also cheaper quality goods has been provided, so that
PosterPLUS Pvt. Ltd. breached the contract. In order to that, PosterPLUS going into court for
sue against the Blackboard Pvt. Ltd. In relation to, not complete the contract as the time period
and providing the cheaper quality goods.
(c) Law of contract and law of sale of goods
Law of Contract
The law of contract of Australian cares the legal enforcement of promises which were
created of the bargain freely entered into forming legal relation know as contract. The common
law in Australia is based on the familial English contract law with particular act changes of
principles in some areas and development of the law through the decisions of Australian Courts.
There are mainly five elements which are necessary in formation of contract such as agreement,
consideration, capacities, intentions and certainty (Oliver and Schoff, 2017).
Offer:
An offer is an expression to other willingness to be bound by stated term. It is something
more than simply statement which the person is willing to discuss terms called as invitation to
treat. There can be must be actual terms which another can accept.
Acceptance:
2

An acceptance occurs where in person agrees to the terms of the offer. This can be done
by the mode of words of conduct. Though if specific means of acceptance is settled in the offer,
it can comply with stated means.
Consideration:
It is the price paid in exchange to the value of the promise. It can be monetary value like
money, property and interest in property though event nominal amount can be sufficient. It can
also involve the non-monetary value like some form of damage (De Padirac, 2018). This kind of
promise to act or refrain from doing something.
Intention:
It is to be legally enforceable, the parties can have intended for the agreement to make
legal relation between them (Svantesson, 2016). In this case study, Blackboard Pvt. Ltd. Have
intention to enter into the contract with the PosterPLUS Pvt. Ltd.
Certainty:
The terms and condition of the contract can be sufficiently certain, so that all the parties
like Blackboard Pvt, PosterPLUS and SEASTROM Containers Ltd. are clear on their rights and
obligations.
Capacity:
The person contracting can have the capacity to do so in relation to enter into binding
agreement. In this case, all the parties have capacity to enter into contract like Blackboard Pvt.
Ltd., PosterPLUS Pvt. Ltd. and SEASTROM Containers Ltd.
Law of Sale of Good:
The sale of Good act is legislation which governs transactions for the sale of products.
Although, the Australian Consumer Law is mainly utilised in business to consumer transactions.
This act constant to implement in business to business dealing and some business to consumer
dealing (McKendrick and Liu, 2015). There are five elements involving when applied the sale of
goods act. Such as:
Contract of Sale:
The contract of sale can be either be sale or agreement to sell. Both kinds of contracts fall
under the definition of contract of sale under the sale of goods act. A sales happens have
ownership of the product passes instantly from the buyer to the seller (What is the Sale of Goods
3

Act and Does It Affect Me?, 2018). An agreement to sell happen when ownership of the goods is
going to be transferred at the upcoming time.
Transfer of Property:
The consequences of the contract can be transfer of products which refers ownership of
products can pass from the seller to the buyer. This act implements when purchaser gets the
products. These buyers can receive open-ended ownership of they purchase.
Goods:
The contract can be for purchase of goods. Products are tangible objects. Under the act,
goods are not attached to the ground,, part of land, money, contracts for services like contract
among accountant ans business (Cartwright, 2016).
Money consideration:
The purchaser can pay monetary price in exchange for the products. The price is set by
the contract or define by the parties.
CONCLUSION
This study has summarised that different elements involves such as agreement,
consideration, capacity, intention and certainty for formation of contract. It can be concluded that
determine the Law of Sale of Good and Law of Contract of Australia.
4

REFERENCES
Books and Journals
Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil
lawyer. Bloomsbury Publishing.
McKendrick, E. and Liu, Q., 2015. Contract Law: Australian Edition. Macmillan International
Higher Education.
Svantesson, D. J. B., 2016. Private international law and the internet. Wolters Kluwer Law &
Business.
Giancaspro, M., 2017. Is a ‘smart contract’really a smart idea? Insights from a legal
perspective. Computer law & security review. 33(6). pp.825-835.
Ginzberg, E., 2017. The institutions of private law and their social functions. Routledge.
Oliver, J. and Schoff, P., 2017. Agency and Competition Law in Australia Following ACCC v
Flight Centre Travel Group. Journal of European Competition Law & Practice. 8(5).
pp.321-328.
De Padirac, B., 2018. The international dimensions of cyberspace law. Routledge.
5

Online
What is the Sale of Goods Act and Does It Affect Me? , 2018.[ONLINE]. Available through. :
<https://legalvision.com.au/what-is-the-sale-of-goods-act/>.
6

7