Topic 8 Sale of Goods

Topic 8 Sale of Goods - TOPIC 8: SALE OF GOODS ORDINANCE...

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TOPIC 8: SALE OF GOODS ORDINANCE (Cap. 26) (“SOGO”) 1. INTRODUCTION ORIGINS of SOGO: The Sale of Goods Ordinance Cap. 26 (“SOGO”) is based on the English Sale of Goods Act 1893. That English statute codified the existing law relating to the sale of goods. Because of its origins and (its similarity to the current English legislation), decisions of the English courts continue to be relevant. Purpose of SOGO: The SOGO attempts to codify the law with respect to the sale and purchase of goods. However, the SOGO does not contain all the common law rules. Section s 62(2) specifically provides for the continued application of the common law particularly in the areas of agency and avoidance of contracts. Scope of SOGO: The SOGO deals with such matters as the passing of ownership and the risk of goods sold, and the remedies of the buyers and sellers for breaches by the other party. 2. CLASSIFICATION OF PROPERTY PROPER TY 119
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R e al Pr o p er ty / Perso nal Prop erty/ R e al ty / Perso nalty/ Mov eable Prop erty I m m o v a bl e Pr o p er ty Chatt els Perso nal 120
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3. DEFINITION OF “GOODS” IN SOGO SOGO applies to contracts for the sale of “goods”. Goods are defined in s.2(1) as follows: "goods" includes all chattels personal other than things in action and money. The term includes emblements, industrial growing crops, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; Things included in the definition of goods: chattels personal: movables i.e. things which can be seen and handled are classified as personal property. This would include flowers, paintings, sculptures, a car, a pet dog and a ship. emblements: crops which do not grow naturally but which are produced annually by agricultural labour e.g. wheat, potatoes. industrial growing crops: crops grown by agricultural labour but which do not mature in a year i.e are not annual crops e.g. cloves SOGO does not deal with land or with those chattels which have become attached to land and which are treated by law as being land (Chattels which become fixed to land are called fixtures). SOGO also applies to those fixtures “which are agreed to be severed before sale or under the contract of sale” [s2(1)] from the land. A grove of trees would be fixtures. But if the owner agrees to sell the trees to a buyer provided he cuts the trees and removes them, the cut trees that are to be cut become goods. They tree are also goods if they are first cut and then sold. SOGO does not cover choses or “things in action”. These are things that give a right to an interest which can only be enforced by taking action in the courts. Examples are rights under a contract, shares in a company or intellectual property. SOGO does not cover money. “Money” = “legal tender” or the currency of Hong Kong.
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Topic 8 Sale of Goods - TOPIC 8: SALE OF GOODS ORDINANCE...

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