Friday, April 9, 2010

Implied Term Under SOGA

 A contract of sales of goods is an essential contract in our daily life and most of us do enter into a contract of sales of goods.  For instance, you want to buy a laptop with a list of specifications that you want at a reasonable price. Thus, you go to a well known computer shop and negotiate with the seller. The negotiation ended when the seller agreed to sell you the laptop you wished at a price. Thus, he printed out the receipt and gave it to you and you signed the receipt (or an agreement) and pay the price of laptop to the seller. In this case, you are actually entering into a contract of sales of goods.


No one wish that something bad to happen to the goods we bought and thus, we need to understand the rules and regulations set by law of Malaysia regarding the sales of goods in order to protect our rights. 


One of the law governing the sales of goods is The Sale of Goods Act 1957. It implies a number of stipulations in every contract for the sale of goods. These implied terms  stated in Section 14 to Section 17 are;





Terms
Section
Explanation
Implied condition as to title
Section 14(a)
Seller must has a rights to sell the goods at the time the property is to pass to the buyer
Implied warranty that buyer shall have quiet possession of the goods
Section 14(b)
Seller should have and enjoy the full possession to the goods he bought from the seller.
Implied warranty that the goods are unencumbered
Section 14(c)
The goods should be free from any charge in favor of any third party not declared to the buyer before or at the time the contract is made
Implied condition that in a sale of goods by description, the goods must correspond with the description
Section 15
The goods must be correspond with the description stated in the contract
Goods Must be Reasonably Fit for the Purposes for which the Buyer wants them
Section 16
Buyer must exercise case when he makes purchases. Else, the buyer must be the consequences
Sale by sample
Section 17
Contract for sale by sample must have such implied condition:
1)      bulk shall correspond with the sample in quality
2)      buyer shall have reasonable opportunity of comparing the bluk with the sample
3)      goods shall free from any defect. If bulk is partly defect, buyer may elect to accept and claim for damages



Notes: These implied terms may apply ONLY when the parties to the contract of sale have not EXCLUDED or MODIFIED them.




Reference: General Principles of Malaysian Law by Lee Mei Pheng



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