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DEFINITION OF IMPORTANT TERM

I) Goods

Section 2 of the Sale Of Goods Act 1957 define goods as:

Every kind of moveable property other than actionable claims and money; and includes stock

and shares, growing crops, grass and things attached to or forming part of the land which

are agreed to be severed before sale or under the contract of sale.

This definition refer to goods are broadly defined and included all chattels personal other than

thing in action and money. Includes physical and moveable thing. Its does not include:

Land or thing attached to land (though it does include timber and growing cropswhich are to be harvested before sale or under the contract of sale)

Choses in action or rights Servicesi

Goods can be divided into a two of classifications under the sale of goods

a) Existing goodsb) Future goods

Existing goods are goods that are already in the possession or storage vendor. It can bedivided into two specific items and items which are not specified. Certain goods are goods

that have been identified during the sale contract. For example, if Azman sell his car to

Badrul. The car is certain product because it is identified when the contract is made.

Unascertain goods refer to the goods that not identified when the contract is made and only

know by the description only. For example Azrina go to the Mega grocery store and said it

wanted to buy two kilos of rice rambutan brand. Rice is known by description only. When

considering the store owner and then deliver the rice to be certain product of the rice

Future goods are goods that are made or produced in the future. Goods will only be acquired

by the seller after the sale contract. For example, both the seller and the buyer has agreed to

create a contract of sale of a television LCD443 model that will be produced by a factory

owned by the seller. This is an example of future goods (not been produse but will be

released).

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II) contract of sale

contract of sale is different from other contracts. Sale of goods act 1979 defines contract of

sale such as.

a contract by which the seller transfers or agree to transfer the property in goods to the

buyer for a money consideration called the price.

A sale of goods which is both a contract and aconveyance ortransferof those goods. And an

agreement to sell which is only a contract. The distinction can have importans effect on

disputes over when risk passes and on remedies for breach of the contract as proprietary

rights in the goods will normaly only exist if there has been a sale rather than a mere

agreement to sell.ii

The provisions of the above explains that the contract of sale of goods, transfer of ownership

of the seller and the buyer must take place. Therefore, to determine whether it is the sale of

goods or not; test is to see the purpose of the contract. If the aim is to transfer, it is a sales

contract.

For reference: In Lee v Griffin (1861), a case involving dentures, it was said the test was not

to be value of the skill and labour compare to that of the material but rather the subject matterof the contract and if a sale of chattel was involved it was for sale of goods.

Also in Robinson v Graves(1935), a case involving painting a portrait , it was held that the

materials sold( the canvas and paint) were only incidental to the skill of producing the portrait

so that there was no sale of goods

III) Agreement to sell

A sale contract under which the property in the goods is transferred from the seller to the

buyer. An agreement to sell is a contract under which the transfer of the property in the goods

is to take place at a future time or subject to some condition there after to be fulfilled:section

4(3), SOGA 1957. Section 4(4), SOGA 1957 state an agreement to sell becomes a sale when

the time elapses or the conditions are fulfilled sybject to which the property in the goods is to

be transferred.

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IV) Price

Price is consideration for a sale of goods. If the consideration for the sale of goods is not in

the form of money, then the contract is a contract of exchange, rather than sales. However, if

the consideration given is a combination of cash and thus, the contract is still considered a

sale contract.

iMei pheng. L,Business law

iiSale of goods & consumer credit in practice 1998