UTS Commercial Law: Statutory Interpretation Assignment Autumn 2020

This assignment analyzes a commercial law scenario involving Pharmfast, Chemway, and Madilab, focusing on statutory interpretation within the context of the Sale of Goods Act 1923. It examines the rights and obligations of each party in their dealings with each other, including the quality and fitness of goods supplied. The analysis delves into implied terms, breaches of contract, and remedies available to each party, such as compensation for losses, the right to reject orders, and the application of the doctrine of privity. The assignment explores the rights of Pharmfast against Chemway, and Chemway against Madilab, considering issues like the intention of parties, actions for price, and the impact of product defects, particularly concerning the supply of masks from a factory with a COVID-19 outbreak. The assignment also considers the rights of Chenway, a customer, under the Sale of Goods Act, including the right to take action against product prices and the implications of goods not being fit for their intended business use.

STATUTORY INTERPRETATION

Contents
QUESTION 2: Rights carried by Pharmfast in respect of dealing with Madilab...................................3
QUESTION 3: Rights carried by Chemway in respect of dealing with Pharmfast................................3
QUESTION 4: Pharmfast had enforceable rights against Chemway.....................................................4
QUESTION 5: Rights carried by Chenway against Madilab.................................................................4

QUESTION 2: Rights carried by Pharmfast in respect of dealing with
Madilab
In this stated case, pharmfast is the medical dealers and also order the products from
the Madilab, which is the suppliers of the medical products. The rights which the Pharmfast
carry in respect of transacting with the Medilab is that the quality of the products is
appropriate and also fit for the purpose through which they are dealing with them. As under
this situation, the act which is followed is relating to working under the section 19 which is
related to carrying the implied terms related to the quality or fitness of the products which
they are dealing in1. Thus, during the supplying of particular products, parties entered into the
contract regarding sale of good act, 1923 which stated that they are agreeing to purchase the
products by the stated terms which is mentioned under section 19 of the Sale of Good Act
relating to supplying the accurate quality products2. In respect of breach committed by not
working under this section, then parties are opposed to pay penalty or compensation for the
losses incurred.
They carried the duty in respect of supplying the accurate products which is
demanded by the Pharmfast. Thus, they carry the liability to provide the accurate services and
also such products which are fit for their purpose3. It refers to the implied terms which is not
necessary to be mentioned in the contract but it is legally bound between the parties to take
care of such terms till they are attaining the period of contract.
QUESTION 3: Rights carried by Chemway in respect of dealing with
Pharmfast
Chemway which is the customer of the Pharmfast carries various right as he enters
into the agreement regarding order the mask of particular quantity under the sale of goods act,
1923. As under section 5 of the sale of goods act, he is the buyer of the products, thus carry
various right regarding buying the products after verifying all the terms and conditions
mentioned in the contract. Chemway also carry the rights which is mentioned under section
22 which stated that they accepts the property when they intended to take such property. In
respect of taking the second slot of mask, he carry the right in respect of rejecting the order if
they find any defects in taking the orders4. Thus, section 22 indicated that the property passes
when the buyer itself agrees to take the order to pass to them. Another rights which is
discussed in this aspect is relating to using the right mentioned under section 54 of the sale of
1 Agrawal, S., 2016. Unascertained Goods’ and VAT–An Analysis in Light of Recent
Landmark Judgments?. VAT & Service Tax Cases. 89.
2 SALE OF GOODS ACT 1923. 2012. [Online]. Available through:
<http://classic.austlii.edu.au/au/legis/nsw/consol_act/soga1923128/>.
3 Hayward, B., 2016. What's in a Name: Software, Digital Products, and the Sale of
Goods. Sydney L. Rev. 38. p.441.
4? Hayward, B., Zeller, B. and Andersen, C. B., 2018. The CISG and the United Kingdom—
Exploring Coherency and Private International Law. International & Comparative Law
Quarterly. 67(3). pp.607-641.

good Act. In this remedy is available to Chemway in respect of conducting breach in
warranty. As warranty not mainly resulting in cancellation of the contract but sometimes
wrong description of the products. Thus, in this case the major chances are results in
repudiating of the contract which is made with the Pharmfast regarding taking the order of
mask on particular time period.
Chemway can also adapt the doctrine of Privity in this case as the contract and right
are mainly enforced between the original parties5. Thus Chemway carry the right to take
action against the Pharmfast in respect of providing the mask from the factory where the
COVID-19 is found.
QUESTION 4: Pharmfast had enforceable rights against Chemway
In this case, the right which is undertaken by Pharmfast is mentioned under section 23
which stated that the rules are ascertaining regarding examining the intention of the parties.
As similarly this is stipulated in this case as Pharmfast carry the clear and expressed intention
regarding providing the services which are accurate and or not infringing any person rights6.
As contract is cancelled if the parties feel that during expressing the usefulness of the
contract, parties hide the important things or not disclosing the detailed information about the
products. But in this case the Pharmfast carry the right to enforce such section to provide
assured regarding the stability of the mask.
Another rights which the Pharmfast can deal is relating to adapting the section 51
which is relating to action of price. In this action is taken against the Chemway regarding
paying the price which is fixed regarding providing the accurate products. As the inspection
is undertaken in respect of providing the integrity of the products in right way7. Thus,
Pharmfast can demand for the claim in respect of receiving the completed payment in
exchange of providing the order for mask. Thus, it is also stated that the goods which is
provided is as per the implied term relating to providing the accurate quality and fit for the
purpose.
QUESTION 5: Rights carried by Chenway against Madilab
In this case Chenway, who is the customer carry various right mentioned under the
Sale of Goods Act, 1923. The rights which is carried by Chenway in respect of supplier of the
mask in whose factory the person is found as COVID-19 is that they enter into the agreement
regarding buying and selling of the products which is mentioned under section 6 of the sale of
the goods act8. In respect of understanding the duties of buyer and seller regarding providing
adequate products to the customer which is mentioned under section 30 of the goods act.
5 Kiraz, S. E., 2019. Third Party's Intellectual Property Rights and the Seller's Liability
Under the United Nations Convention on International Sale of Goods (CISG) and the Sale of
Goods Act (SGA) (Doctoral dissertation, University of Leicester).
6 Wijerathna, Y., 2016. Sale of Goods Ordinance No 11 of 1896: A Call for Reforms.
7 Pearson, G., 2017. Consumer sales law in Australia. In Comparative Consumer Sales Law. (pp.
15-30). Routledge.
8 Pearson, G., 2018. Enforcement and Effectiveness of Consumer Law in Australia.
In Enforcement and Effectiveness of Consumer Law. (pp. 75-97). Springer, Cham.

Chenway also carry the right in respect of taking action against the prices of the products9. In
this, they carry the charge to decrease the amount of the products or also not pay any amount
in respect of not accepting the goods or services. The rights are also undertaken which is
mentioned under section of the sale of goods act which stipulated that the such goods are not
used by individual as it is mainly ordered for the purpose of the business10. Thus, the business
is mainly for the purpose of satisfying the consumer interest instead of enjoying the right of
itself.
9 Lewins, K. and Nair, A., 2016. International Recent Developments: Australia. Tul. Mar.
LJ. 41. p.535.
10 Osuntogun, A. J., 2016. Risk and frustration as applied in sale of goods: who bears the
brunt of unforeseen contingencies?.