The Sale of Goods Act enforced in the year

Running head: COMMERCIAL LAW
COMMERCIAL LAW
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COMMERCIAL LAW1
When a sale in relation to any particular good takes place, the most important factor
regarding the sale is considered to be the transference of property and risk from the seller in
favor of the buyer. It relates to the transference of ownership from the seller to the buyer. The
Sale of Goods Act enforced in the year 1979, directs and monitors the situations and conditions
in connection to such transfers. The transfer is given effect when there is an exchange of
property and the price of property between the seller and the buyer. This paper has discussed the
points mentioned above with the help of the scenario provided by the given question1.
The first issue is in relation to the Epoque clock and whether there exists a passing of the
property as well as the risk upon Noel.
According to sub-section 1 of Section 5 as provided in the Sale of Goods Act enforced in
the year 1979, mentions the concept of future goods2. The future goods are regarded as goods
that are regarded as the substance of any particular contract regarding sale, may either be
considered as goods that are existing, which are possessed or owned by seller, or may be
considered as goods that must be acquired or manufactured by the seller after the contract
regarding sale has been made3.
Section 12 of the Sale of Goods Act of the year 1979 provides the implied condition in
relation to the ability of the seller regarding the transference of the title in connection to the
goods to the purchaser4.
The case of Niblett v Confectioners' Material [1921] 3 KB 387 is an important case in the
provided scenario5. In this case, it was held that the sellers were unable to enjoy the right or
1 Bridge, Michael G. The international sale of goods. Oxford University Press, 2017.
2 Sale of Goods Act, 1979
3 Lista, Andrea. International Commercial Sales: The Sale of Goods on Shipment Terms. Informa Law from
Routledge, 2016.
4 Ibid
5 Niblett v Confectioners' Material [1921] 3 KB 387

COMMERCIAL LAW2
entitlement in relation to the sale of the goods and hence the purchasers had the right to forsake
or renounce the contract. In this particular case, it was opined by Atkin L.J. that no violation
would be caused regarding the implied condition as provided in section 12 if the seller is
successful in passing to the buyer a right or entitlement to sell irrespective of the incapability of
the buyer. This view was also supported in the case of Anderson v. Ryan [1967] I.R. 346.
Section 17 as provided in the Sale of Goods Act enforced in the year 1979 states that
when a particular contract is established in relation to ascertained or specified goods, then the
property regarding such goods is transferred in favor of the buyer during the time that is decided
as per the intention of the parties7. It is also mentioned in this particular section that the intention
in relation to the parties must ascertained on the basis of the comportment of parties, terms
regarding contract and the circumstances or instances of the case8.
The second issue is in relation to the eight marble statuaries, which have been taken on
‘sale or return’ basis, and whether there exists a passing of the property as well as the risk upon
Noel.
Section 18 as provided the Sales of Goods Act forwards the rules, which may be applied
in situations of ‘Sale or Return’ (SOR) based contract. As per rule 4, the law states that goods
shall pass from the seller in favor of the buyer either through SOR or on approval. The good
shall pass when an approval or acceptance relating to the transaction is demonstrated. It shall be
considered by the law that the goods have already passed from the seller in favor of the buyer if
nothing is signified by buyer before the approach of the deadline9.
6 Anderson v. Ryan [1967] I.R. 34
7 Sale of Goods Act, 1979
8 Akrami, Farzaneh, Sakina Shaik Ahmad Yusoff, and Suzanna Mohd Isa. "Open Price Term under the United
Kingdom Sale of Goods Act 1979." Jurnal Undang-undang dan Masyarakat (2018).
9 Andrews, Neil. "Sources and General Principles of English Contract Law." Arbitration and Contract Law.
Springer, Cham, 2016. 165-175.

COMMERCIAL LAW3
As mentioned in section 25 as provided in Sale of Goods Act of 1979, a purchaser in
relation to a ‘conditional sale agreement’ may not be regarded as an individual who has decided
to purchase goods10.
According to section 35 of the aforementioned Act, it is presumed that a purchaser has
accepted and acknowledged the goods, when the purchaser communicates to the seller that the
acceptance regarding the goods has been made by him11. It is also presumed that the purchaser
has acknowledged his acceptance in relation to the goods when any act is performed by him
regarding the goods that is not consistent with the seller’s ownership. As per sub section 4 of this
particular section, it is also presumed that the acceptance in relation to the goods has been
acknowledged by the buyer when a reasonable time goes by during which the buyer has retained
the goods and such retention of goods has not been communicated by the buyer to the seller12.
As per section 35A of the aforementioned Act, a buyer shall enjoy the right to reject or
discard all or few of the goods, if any violation is caused by the seller in relation to the contract13.
The buyer may accept few goods, which may or may not have been affected by the violation
caused by the seller. However, such acceptance by the buyer does not deprive the buyer
regarding his right or entitlement to reject or discard the rest of the goods14.
The third issue is in relation to the sale of four marble statuaries (which were taken on
‘sale or return’ basis) and whether there exists a passing of the property as well as the risk upon
10 Ibid
11 Sale of Goods Act, 1979
12 Zeller, Bruno. "Conformity of Goods." International Sales Law. Nomos Verlagsgesellschaft mbH & Co. KG,
2016.
13 Ibid
14 DiMatteo, Larry A. "Pre-contractual Liability in the Common Law." International Sales Law. Nomos
Verlagsgesellschaft mbH & Co. KG, 2016.