Chapter 1: Definition of contract of sale of goods
| Library | Commercial Law 2012–2013 |
| Pages | 1-4 |
| Author | Jonathan Fitchen |
English law provides different legislative regimes for different forms of commercial contracts. Only contracts of sale of goods are governed by the
A contract of sale of goods is a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price …
The basic notion is that a contract of sale of goods is a means of transferring property (meaning ownership) from one person to another. There are other means of doing this. Clearly, making someone a gift or leaving someone a bequest by will are alternatives. There are also other types of contract which may involve transferring ownership and/or possession of goods. The reason that these other types of contract are not contracts of sale of goods is that one or more ingredients of the above definition is missing. These contracts are, therefore, not governed by the
Type
Why not sale?
Other relevant legislation
Barter or exchange
No money consideration
Sections 2–5A of the Supply of Goods and Services Act 1982
Services and work and materials contracts
Substance of contract, not the passing of property in goods
Sections 2–5A and 12–16 of the Supply of Goods and Services Act 1982
Hire purchase
No commitment by hirer to accept transfer of property in goods
Sections 8–11A of the Supply of Goods (Implied Terms) Act 1973; Consumer Credit Act 1974
Hire
No provision for transfer of property in goods
Sections 6–11 of the Supply of Goods and Services Act 1982
Sale of land
Land is not within the definition of goods
See
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Jack agrees with Bill to swap his hammer for Bill’s wrench. A little later Bill is told by Cedric that the hammer was not Jack’s at all and that it belongs to Cedric. Bill cannot argue that Jack is in breach of the implied term contained in s 12 of the
Sale of Goods Act 1979 because the transaction was not a sale of goods contract under that Act (no money changed hands). Look at ss 2–5A of theSupply of Goods and ...
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