Types of goods existing goods these are goods owned

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Types of Goods-Existing goods:These are goods owned or possessed by the seller at the time of contract.-Future goods:These are goods to be manufactured or acquired by the seller after themaking of the contract.-Specific/ascertained:These are goods that can be identified by buyer at the time ofcontract.-Unascertained:These are goods that cannot be identified by the buyer at the time ofcontract or yet to be taken from bulk[2*4=8 marks]b)Implied ConditionsSeller’s title (s. 13)There is always an implied condition that the seller has right to sell the goods.This right to sellmust exist at the time of an immediate sale or at the time the goods are handed over in anagreement to sell.That is, the seller satisfies this condition if he or she has title to the goods atthe moment when the property is to be passed to the buyer.However, the condition is consideredbroken if the seller, although he or she owns the goods, can be stopped by a third party fromselling them.It is essential for the owner to have the right to transfer title to the buyer.If the seller delivers goods to the buyer without having the right to sell, there is a total failure ofconsideration.The buyer does not then obtain the ownership of the goods, which is the essentialbasis of the contract.If the buyer consequently has to give up the goods to the real owner, he orshe may recover the entire price from the seller, with no allowance for the use of the goodsbefore their return.The seller also gives implied warranties that the buyer shall have a quietpossession of the goods, that is, that the goods are free of any encumbrance or challenge by athird party.Any such encumbrances must be disclosed to the buyer when the contract is made.11
Case: Niblett v Confectioners’ Materials C. (1921).Sale by description(s. 14)In a contract for sale of goods by description, a condition is implied that the goods willcorrespond to the description.A sale by description means that the goods must conform to adescription of the goods supplied by the contract, even though the buyer may have inspected thegoods before purchase.This condition is also applicable to situations where the buyer himself orherself asks for goods by stating his or her requirements.However, if the buyer makes clear thathe or she is buying goods because of their unique qualities, and that no other item will meet hisor her requirements, a sale is not a sale by description.Where the sale is by sample as well asdescription, the bulk of the goods must correspond to both the sample and the description.Case:Grant v Australian Knitting Mills (1936).1.Satisfactory quality(s. 15)SGA 1979 states that, where goods are sold in the course of a business there is an implied termthat the goods supplied under the contract are of satisfactory quality.The word term aboveincludes both condition and warranties and it refers to goods supplied under the contract, not justgoods sold.It would therefore cover the quality of a free gift offered as an inducement topurchase.

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Term
Fall
Professor
Marjorie Adams

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