1. The agent performs a service for the principal
2. The agent represents the principal
3. Acts of the agent affects the legal position of the principal
The agency relationship differs from trusts and bailment.
This is an equitable relationship wher
guarantee anything about the goods unless a buyer demanded a warranty. However, these
principles turned out to be very harsh to the consumers and exception had to be developed.
The Doctrine of Caveat Emptor is now contained in sec. 16 of the sale of Goods
3. List the conditions and warranties implied in a sale of goods contract?
SALE OF GOODS LAW
INTRODUCTION TO LAW 296
ANSWERS TO CHAPTER QUIZ
1. A contract of sale of Goods is a contract whereby the seller transfers or agrees to
transfer the pro
agreed to by the parties.
fewer goods are
a. Reject the goods
b. Accept and pay at the contract price
a. Reject the goods
b. Accept those included in t
It means that a seller cannot give to the buyer a better title to the goods than he himself has. The
principle of Nemo datwas developed by the Common Law to protect the true owners of goods.
However, its strict application interferes with c
DUTIES OF THE SELLER
state-The seller is bound to ensure that
are in a condition in which the buyer is bound to take delivery when the contract is made
and unless otherwise agreed, the cost of doing so is born
Termination of Agency.
The law of agency deals with the principles that govern the relationship between a principal and
his agent. The term agency refers to a delegation of duties to another party by a principal. The
agent also has rights th
specific goods to
etc.Under sec. 20 of the
Act, if specific goods are to be weighed, measured, tested or that other thing is to be
done for the purpose of determining the price, property passes when the thing is don
2. If the right of the seller to bid is not expressly reserved, he cannot bid or do so
through another person.
3. A sale by auction may be the subject to an agreed price
SALE OF GOODS LAW
INTRODUCTION TO LAW 284
4. A sale by
goods and who sells in his own name. A factor passes a good title, even if he has no
authority to sell provided he sells the goods: -a. In his capacity as mercantile agent
b. In the ordinary course of business
c. To a bona fidepurchase for value without n
c. That the goods shall be free from any defects rendering them
Quiet Possession: Under Section 14 (b) of the Act there is an implied warranty
that the buyer shall have and enjoy quiet possession of the goods.
Under Section 5 of the Act, in a sale by description
there is an implied condition that the goods shall correspond to the description.
Under Section 16(a) of the Act, where the buyer expressly or
3) Where the goods delivered are mixed with goods of another description.
i. If the seller delivers more goods than the quantity contracted for.
ii. If the seller delivers less goods than the quanti
parties replied upon the representation. It was estopped from denying his apparent
4. AGENCY OF NECESSITY
This is a category of agency created by law in circumstances of necessity where one party is
deemed to have acted as an agent of another.
the goods failure to which the seller may maintain an action against him for the price
pursuant to section 49 of the Act.
The duty of the buyer to take delivery and pay the price and that of the seller to deliver the goods
should be concurrent i.e. the se
LAW OF AGENCY
INTRODUCTION TO LAW 304
2. AGENCY BY RATIFICATION
This is the adoption or confirmation by a party of a contract previously entered
competent jurisdiction passes a good title in accordance with the provisions of Section
23(2) (b) of the Act.
Market Overt: At Common Law, sale in market overt passed a good title to the
buyer provided he took the gook the goods in good faith,
party, delivery is complete when the 3
notifies the buyer that he holds the goods on his behalf.
6. If the seller is bound to transmit, the goods to the buyer, he must do so within the
stipulated time if any or within a reasonable time.
Stores v. Patterson, the appellant had sold goods to Mrs Patterson valued at Kshs. 3552. She had
pledged Mr. Pattersons credit who at the time was in prison. The appellant sued Mrs. Patterson
for the sum alleging that she had not contracted with her as an
has the rights to withhold their delivery to the buyer.
These are remedies against the buyer and are enforceable by court action namely: -i) Action for Price
ii) Damages for non-acceptance
SALE OF GOODS LAW
INTRODUCTION TO LAW 292
The sellers action for price is an action for the liquidated sum.
Under sec 50(1) of the Act, if the buyer wrongfully neglects or refuses to take delivery of goods,
the seller may maintain an action against him in damages for
1. There must be a genuine emergency necessitating action in relation to the goods.
2. It is impossible for the party in possession to seek instructions from the owner.
3. The party in possession must act in good faith for the benefit of th
goods, property passes to the buyer when the goods are ascertained.
i. Goods to be manufactured by the seller.
ii. Crops to be grown by the seller.
iii. Purely generic goods.
iv. An unidentified portion of a special bulk
This is the right of unpaid seller who has already parted with possession of the goods to resume
the same as long as the goods are still in the course of transit to the buyer. The exercise of this
right enables the seller to resume
1. Whereas most agencies are contractual, trusts are not
2. Whereas the principals action against the agent for fraud is limited by the Statute of
Limitation, an action by the beneficiary against the trustee has no time limitation.
This is a cont
However under sec. 6(1) of the Act, a contract of sale of Goods of Kshs. 200 and above is
unenforceable unless: -1. The buyer has accepted part of the goods and actually received the same or
2. The buyer has given something in concert to bind the contract
Under Section 4 (a) of the Act there is an implied condition that the seller of goods shall
have the right to sell when property in the goods is to pass.
Under Section 5 of the Act, in a sale by description th
bailee with specific instructions that the goods be dealt with in a particular
This area has been tested severally; the student is required to be well versed with the principles
of agency law and the rights and obligations arising from
The principle of Nemodatis now contained in sec 23 (1) of the Sale of Goods Act which provides
Where goods are sold by a person who is not the owner thereof and who does not sell
them under the authority or with the consent of the owner, the bu
fixed by the valuation of a 3
party who fails to do so, the agreement is avoided.
The Sale of Goods Acts implies both conditions and warranties in Sale of Goods of Contracts
unless a different intention appears on the part of the parties