Sale of Goods Act and Implied Terms in Contracts

Running Head: CORPORATIONS LAW
CORPORATIONS LAW
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CORPORATIONS LAW
The Sale of Goods Act can be defined as an act of the parliament of the United Kingdom.
The Sale of goods act governs the English Contract Law and Commercial law related to the sale
of goods and services. The sale of Goods Act 1979 had consolidated the former Sale of Goods
act 1893. It is to be mentioned that in contracts of sale of goods and services certain basic
provisions are imposed by the Sale of Goods and Services Act 1979 in order to ensure that
protection is provided to the purchasers in the contracts. One of the main provisions as imposed
by the aforementioned act is that goods must correspond with their descriptions and in terms of
quality and quantity. Such provision protects the right of the buyer to not be deceived by the
seller.
There are many implied terms that are imposed on a contract involving sale of goods and
services by the Sale of Goods Act 1979 under section 12 – 15. The implied terms imposed on
contract by the aforementioned act are:
 Section 12- This section states that in case of a sell of goods the seller must have the title
of the goods and the right to sell the goods. In case of an agreement, the seller must
possess the right to sell the goods involved at the time of transfer of the property.
 Section 13- This section of the Sale of Goods Act 1979 states that the goods sold must be
of satisfactory quality. Further it can be said in accordance with the section that where
sale of goods is done by sample, the bulk amount goods sold must correspond with the
quality of the sample.
 Section 14(2) - This section states that goods sold by the contract of sale must be of
satisfactory quality.
 Section 14(3)- This section of the aforementioned act states that the goods sold by a
contract of sale of goods must be fit for the purpose of the buyer.

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CORPORATIONS LAW
 Section 15- According to this section it can be said that a contract for sale of goods is
considered to be a contract for sale of goods by sample if there is an express or implied
term stating the same. However, the bulk goods must correspond with the quality of the
goods provided in the sample and that the bulk goods would be free from any defect.
Sale of goods by description
As discussed above in section 13 of the Sale of Goods Act 1997 any contract which involves
sale of goods by description, the goods must correspond with the description. In case of sale of
goods by sample the bulk goods must correspond with the quality of the sample as provided in
section 15(2). However, subsection 13(3) of the aforementioned act states that when a contract
for sale of goods is made by description as well as by sample, the bulk of goods must correspond
with the sample as well as with the description. It is to be mentioned that sale of goods by
description can be of two types:
 Unascertained future goods
 Specific goods
Unascertained future goods – This type of contract involving sale of goods have been defined
by the courts as one in which the buyer purchases the goods that he has not seen
Specific Goods- In case of sale of goods by description which are specific, three limitations
are imposed. They are as enumerated below:
 The goods sold must be identified by their description- In sale of goods by
descriptions the descriptive words that identify the goods will be held to be a part of the
sale by description. The courts differentiate descriptive words which are related to the