International Business Law : Report

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Added on 2020-01-07

International Business Law : Report

Added on 2020-01-07

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InternationalBusiness Law

Computer software sits uncomfortably within the definition of sale of goods in the Sale ofGoods Act 1979‘Sales of Goods Act 1979’ is developed by the Parliament of UK in respect of goods thatare sold and bought in the country. In accordance with the Section 16 of the Act, goods compriseof all personal chattels other than things in action and money. In the provisions of English lawthere is not clear provisions regarding software and further, there are few case laws on it(Dannemann and Vogenauer, 2013). Due to this aspect, suppliers are not able to understand thelegal provisions regarding software and remedies that can be attained by customers if there is anyproblem in the software. In the present era, software is one of the most universal products incommercial age. Despite of this fact, it does not have distinct legal identity. It is because of theissue of tangibility of commercial product. Meaning and characteristics of softwareSoftware can be cited as a term that is used for the description of algorithms, procedures,documents and programs being provided for the data processing system. By considering the legalpoint of view, software is significant for two reasons in which first is different from otherconventional chattels and in second, it has distinctive characteristics (Moore, 2013). Inaccordance with the Scott Baker J, software is not tangible thus, it will not be considered as agood. However, this fact is not considered in situation where software is supplied with a mediumlike disk. As per the case of London Borough of Southwark v IBM UK Limited [2011] EWHC549, court had stated that software will be covered in definition of SOGA if it is supplied on CDbut not where software is licensed (Sherwood, 2010). However, this provision is not justifiablefor parties who do not have option to chose medium of delivery and this factor has significantimpacts on their rights. Coverage of software in Sales of Goods Act 1979 or Supply of Goods and Services Act 1982In accordance with the provisions of English law, software is considered to be good iftransactions of it would be done through traditional methods i.e. provided in the form of disk.This decision was provided in case of District Council v International Computers Limited QBD11 NOV 1994. In this case, court had provided decision that if software is supplied with themedium of storage then it will be considered in the definition of Sales of Goods Act 19792

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