Analysis of Agency Theory and Sale of Goods Act in Legal Contexts

This assignment delves into the legal intricacies of the Sale of Goods Act 1979 and Agency Law within the context of European consumer protection. By examining key literature, including works by Bar-Gill, Ben-Shahar, and others, students will analyze how these laws shape contractual relationships and obligations in commerce. The focus is on understanding their application to common European sales laws and the implications for consumer rights and business practices. Through this analysis, students will gain insights into the dynamic interplay between civil law traditions and common law principles as they apply to modern commercial transactions.

COMMERCIAL LAW

Table of Contents
Aims and Objectives........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
REFERENCES................................................................................................................................4

Topic: To investigate the impact on European Union Sale of Goods legislation on seller and
buyer of UK.
Aims and Objectives
Aim: To identify impact on European Union Sale of Goods legislation on seller and buyer
of UK.
Objectives:
 To critically define European Union Sale of Goods legislation.
 To evaluate roles and responsibilities of buyers and sellers of UK.
 To critically determine impact on European Union Sale of Goods legislation on seller and
buyer of UK.
LITERATURE REVIEW
On the basis of words of Slocum and Collen, (2011), it has been depicted that in Sales of
goods act 1979, two parties comes in legal agreement name called seller and buyers. Seller is
person who deliver goods and services to another person as per his requirement and to whom
they deliver is known as buyers. Furthermore, they are bound to deliver best quality of products
and services to people in order to satisfy their needs and demand. For the same purpose buyers
provide description to them in which they mentioned their requirement. Also seller try to satisfy
needs of them. If they not able to do the same then customers having right to file case against
them and receive amount of compensation as well. Further roles and responsibilities of both
parties consists under this act which needs to be followed by them. As per the rule of European
Union Sales of goods act the contract of sale needs to be absolute. After deliver of product buyer
becomes the real owner of it. Further process needs to be take place in future so that both parties
filed in written document name called legal agreement. In such process buyers having right to
return goods if it found defected.
As per the view of Dalley, (2010) it has been stated that European Union Sales of goods
act having impact on performance of both sellers and buyers. Furthermore, rules and regulation
imposed restriction on sellers that they are not able to offer cheap quality of products to people.
Through this they are bound to follow the same otherwise court imposed penalties on them as per
mentioned under law. As per this rules sellers have to perform ethically and needs to maintain
their performance as well. They have to build trust among people in order to keep them for long
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time for earn better profit. Due to non performance exclusion liabilities create on them. Not
provide any mislead information which is against the rules of cited law. Such activities having
badly impact on future performance of sellers.
Holt and Lampke, (2010), examined that European Union Sales of goods act also having
impact on the activities of buyers. Cited law is able to restrict customers that they are bound to
made payment to sellers at the time of delivery of goods and services. Various types of
restriction are mentioned for them which are control conflict arise among both parties. Both
parties are beyond to maintain effective relationship with each other in order to attain their target
and try to meet their consideration as well. They needs to focus on obligation which are created
on them through framing of legal contract and signed by both as well. Consumers not able to
deny to accept goods for which they placed an order. Otherwise opponent having right to file
case. Firstly, buyers have to placed an order to receive some goods and services which is
considered as offer as per rules of law. Thus, if it has been accepted by sellers than it become
legal contract and lots of obligations imposed on them. Furthermore, Consumer Credit Act 1974
applies on buyers if payment has been mad through equal instalments. But time, amount and
further information needs to mentioned under written agreement which can be considered as
prima facie evidence for them. Through such activities no person can cheat to anybody. In case
injuries caused to consumer due to cheap quality of goods provided by seller than person having
right to lodge complaint against in order to receive amount of compensation equal to mentioned
under law.
According to the statement of Lan and Heracleous, (2010), it is considered that provision
of both sales and goods act and agency law having impact on performance of parties. As they are
bound to comply with rules and responsibilities which are imposed on them. In European Union
Sales of goods act, both buyer and seller have to fulfil their duties and such as sellers are bound
to transfer best quality in order satisfy needs of customers and buyers are responsible to made
payment to another party equal to amount discussed by them. If they are failed to do so then
legal authorities imposed penalties on them as per the rule of law. Buyers can be replaced goods
which they receive as defected or not fit for their purpose. Also sellers are bound to made
payment as compensation equal to amount mentioned under law.
On the basis of views of Slocum and Collen, (2011), section 12 (1) defines that seller are
responsible to deliver best quality as per the implied condition of this act. Section 13 (1)
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mentioned that product must be able to fulfil requirement of buyers. Section 2 of the Sales of
Goods Act details that how a contract is formed and has certain terms which has to be followed
by the parties. Section 3(2) briefs that if goods are sold & delivered to minors so if the goods is
necessary so they have to pay a relevant prices. In the rules of European Union Sales of goods
act, necessary goods is defined as something which is related to the conditions of life and is true
required at the time contracting. Section 6 and 7 concerned to particular goods that is expired,
briefs that a contract is not valid if good expire or spoil before and the contract goes on if they
expire after formation of contract. Under section 8(2) money is the thing which has to be given in
exchange of goods. If the price to ascertain a price, is not agreed, the buyer will be required to
pay a relevant price.
As per views of Lando, (2011), European Union Sales of goods act is having great
impact on both parties that they are bound to follow rules and regulation which are imposed on
them. If the breach of the above terms takes place from the seller side may give rise to an action
for damages and also the condition which defines condition will lead to termination of contract.
Section 12 is related to the title given to the seller and it gives them the legal title to the property
to be sold or that he will have title at the time when the property is to pass. Bridge, (2012), said
that Section 13(1) says that the buyer should sell the goods according to the description and
Section 14 states that all the terms are all about quality and their title and only relevant where the
seller is acting in the course of a business. It has various sub sections which define a product and
its quality.
According to the views of Magnus, (2010), Section 14(2) states that whatever goods is
sold to the buyer should be of fine quality and those who want to buy this have full right to test
its quality and ask for a reasonable prices and set the standards for this. Bisping, (2010), defined
that Section 14(3) details that it is the duty of the sellers to make sure that goods provided are fit
for the purpose. Part III of this act consists of section 16 to 26 and shows the effects of contracts
and in general the transfer of property and the title of the goods. Until the goods are identified
ownership of the property cannot be transferred. This is mentioned in the Section 16.
As stated by Dalley, (2010), it has been stated that agency law is the legal term which is
created by two persons name called principal and agent. Before perform their function they
comes in contractual relationship with each other. For the same purpose they file legal agreement
in written form and mentioned several terms and condition with mutual consent. The creation of
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agency can be of three means as scripted in English law i.e. by express agreement, by implied
agreement and by operations of law. An development of agency comprises of there main
involving people which are agent, principal and third party. All problems and issues related with
agent and principle relationship or the formation and termination of agency is followed up as
sated in English law. As stated by Lan and Heracleous, (2010), this can be defined that he
provision of law of agency defies the duties and responsibilities of both the parties i.e. agent as
well as principal while following an agency relationship. This can be defined as that duties of an
agent towards its owner are that representative work with the defied instruction of principal,
should bring transparency in work by communicating all important information with relation to
his duties and should responsibly act for profits of his principal.
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REFERENCES
Books and Journals
Bar-Gill, O. and Ben-Shahar, B., 2013. Regulatory techniques in consumer protection: A critique
of European consumer contract law. Common Market L. Rev.. 50. p.109.
Bisping, C., 2013. The common European sales law, consumer protection and overriding
mandatory provisions in private international law. International & Comparative Law
Quarterly. 62(2). pp.463-483.
Bridge, M.G. ed., 2012. Benjamin's sale of goods (Vol. 11). Sweet & Maxwell.
Dalley, P.J., 2010. A Theory of Agency Law. U. Pitt. L. Rev., 72, p.495.
Holt, T.J. and Lampke, E., 2010. Exploring stolen data markets online: products and market
forces. Criminal Justice Studies. 23(1). pp.33-50.
Lan, L.L. and Heracleous, L., 2010. Rethinking agency theory: The view from law. Academy of
Management Review. 35(2). pp.294-314.
Lando, O., 2011. Comments and Questions Relating to the European Commission's Proposal for
a Regulation on a Common European Sales Law. Eur. Rev. Private L.. 19. p.717.
Magnus, U., 2010. The Vienna Sales Convention (CISG) between Civil And Common Law-Best
of All Worlds. J. Civ. L. Stud.. 3. p.67.
Munday, R. and Munday, R.J., 2010. Agency: law and principles. Oxford University Press.
Slocum, J.T. and Collen, J.M., 2011. The Evolving Threat and Enforcement of Replica
Goods. W. New Eng. L. Rev.. 33. p.789.
Online
Sale of Goods Act. 2017. [Online.] Available through: <http://www.which.co.uk/consumer-
rights/regulation/sale-of-goods-act> [Accessed on 13th September, 2017].
What is Agency Law?. 2017. [Online.] Available through: <https://www.hg.org/agency-
law.html> [Accessed on 13th September, 2017].
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