Essays on Analysis of Sale of Goods Act (SGA) Assignment

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The money to be exchanged for goods has been called price. There are two types of contracts, absolute contract, and conditional contract. If at the point of the agreement the goods are transferred from the seller to the buyer, it is considered as the sales contract while in a situation whereby there is a set of conditions to be fulfilled before the goods can be transferred; it is called the agreement to sale. Agreement to sale will only become sale when the condition stated in the agreement is fulfilled within the time frame agreed upon. It also has some formalities to be adhered to.

Sales contracts can be oral, written, or both as long as both parties agree. It also outlines some conditions under which this Act is applicable. It outlined several conditions that guide the buyer and the seller of goods in a contract environment. The Act has provided some guidelines for the ascertainment of the price of goods. It goes ahead to outline the valuation details where prices have not been agreed upon by the parties in question.

Preaching of contracts and warranties has not been forgotten in the Act. The Act provides that in a situation where the goods cannot be transferred to the buyer before the buyer ascertains the property and the goods in them. If the buyer has ascertained the goods, the goods can be transferred as per the agreement of both parties from the buyer to the seller. Several issues here though have to be considered among them is the prevailing circumstances and agreement in the contract among others. Processing of goods to make sure that it is in a deliverable state must be completed by the concerned party before they are transferred to the buyer where such is stipulated in the contract.       The case of Bob and Colin’ s Hardware Stores   We have been give this case in the question where Bob Barlow, a licensed builder, was building six houses at Port Coogee Marina, located South-West of Perth.

Bob entered a written contract with Colin’ s Hardware Store in Ottawa to purchase twelve hundred meters of Mahogany floorboards, nine hundred kilograms of gravel and the old stain glass window advertised on Colin’ s web site.

He also ordered six shade sails to be erected in the gardens of those six properties, subject to approval by the Coogee Town Council. Bob has now become bankrupt and the passing of property has become an issue    Bob is the buyer in the transaction. He has the intention of buying a list of items that have been listed. He has gone ahead to writing a contract to buy goods with his potential supplier. Colin’ s Hardware Stores are the seller of the properties listed. He has made a contract with his customer who has already ordered the goods.

The contract is awaiting both to act, Colin’ s Hardware Stores to deliver the goods to Bob and Bob is expected to make the payment. we cannot tell if the goods in the question are attached to any condition or the contract conditional all we know is there are some goods to be sold by Colin’ s Hardware Stores to Bob, we are also informed that the two principals are have already entered a written contract. It is evident from the above statement that the case of Bob and Colin’ s Hardware Stores falls under the jurisdiction of the Sales of Goods Act.

The contract for has does not have issues to be solved however, it provides a foundation of the case. According to the statement given, bob is bankrupt and has not paid for the goods he had ordered from the Stores. The condition provided by the Act (Part III) delivery of goods should be concurrent with payment. It has however assigned the seller the duty to deliver goods and also assigned the buyer the duty to make the payment upon delivery.

It has not however fixed this condition; it has opened an avenue to the contract of sales. That if at any point the contract entered details of payment whatever that is in the contract will be followed. While the process of passing of property has four general steps, the most basic of them is the ascertaining of goods prior to entering a contract to purchase goods. The second is the statutory presumptions, this gives the rules guiding the entering of contract and the rules guiding the passing of property in the event of buying of a property or goods by the buyer and the sales.

The last rule guides the buyer on the situation when they should accept or reject property that has been delivered by the seller. According to the rules governing the passing of property, the basic rules that should be observed in the event of the passing of a property from the initial owner who is the seller to the buyer should be the following: upon the agreement of the seller and the buyer to pass property, the property will be passed from the seller to the buyer only and only if the buyer has ascertained the goods in the property.

Otherwise, no agreement can be valid if the buyer has not ascertained the goods. It is good to make a contract after the buyer has ascertained the goods and only the goods that are ascertained that will appear in the contract. Ascertainment can be done by both the seller and the buyer or they can agree to send someone who will represent the interest of both parties.


Western Australia (September, 2010) Sales of Goods Act of 1895; Retrieved on April, 28th, 2011. From;,

Fontaine, T. W: Sales of goods; passing of property: Retrieved on April, 28th, 2011

From www.commercial/law/passing/property.pdf

Government of Australia: Office of Legislative Drafting, Attorney-General’s Department, Canberra (July, 2004) Trade Practices Act 1974. Retrieved on April, 28th, 2011 from: www.commercials/law/ TradePrac1974Vol1

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