SALEOFGOODSACT1979.doc

SALE OF GOODS ACT 1979 ? ? PART I?? CONTRACTS TO WHICH ACT APPLIES ? 1.??? Contracts to which Act applies ? (1)?? This Act applies to contracts of sale of goods made on or after (but not to those made before) 1 January 1894. ? (2)?? In relation to contracts made on certain dates, this Act applies subject to the modification of certain of its sections as mentioned in Schedule 1 below. ? (3)?? Any such modification is indicated in the section concerned by a reference to Schedule 1 below. ? (4)?? Accordingly, where a section does not contain such a reference, this Act applies in relation to the contract concerned without such modification of the section. ? ? PART II?? FORMATION OF THE CONTRACT ? Contract of sale ? 2.??? Contract of sale ? (1)?? 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. ? (2)?? There may a contract of sale between one part owner and another. ? (3)?? A contract of sale may be absolute or conditional. ? (4)?? Where under a contract of sale the property in the goods is transferred from the seller to the buyer the contact is called a sale. ? (5)?? Where under a contract of sale the transfer of the property in the goods is to take place at a future time or subject to some condition later to be fulfilled the contract is called an agreement to sell. ? (6)?? An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. ? ? 3.??? Capacity to buy and sell ? (1)?? Capacity to buy and sell is regulated by the general law concerning capacity to contract and to transfer and acquire property. ? (2)?? Where necessaries are sold and delivered to a minor or to a person who by reason of mental incapacity or drunkenness is incompetent to contract, he must pay a reasonable price for them. ? (3)?? In subsection (2