Commercial Law, the Sale of Goods Act 1979

Commercial Law, the Sale of Goods Act 1979. The work is to be 11 pages with three to five sources, with in-text citations and a reference page. If there is an express provision that the property was to pass to the buyer at a particular stage, that provision could not, in the case of a contract for the sale of unascertained goods, come into effect until those goods were ascertained under section 16 of the Sale of Goods Act 1979 (SGA). Section 18 further provides also that where goods are in bulk and not ascertained they cannot pass to the buyer.

The time for determining whether goods are specific or unascertained goods is that at which the contract is made3. If the contract is for goods which are “identified and agreed upon” at the time the contract is made, then the SGA it will be a contract for ascertained specific goods. In the current scenario, whilst the quantity of goods ordered by Lacey is dependant on the customer orders, the actual goods are clearly identifiable and the agreement between Lacey and Micro-Maker is, therefore, most likely to constitute a good for ascertained goods.

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Additionally, the general rule set out under section 17 of the SGA provides that property in goods passes when the parties intend it to pass, thereby highlighting the freedom of contract principle4. With regard to the current scenario, it is unclear whether express provisions have been contractually agreed regarding ownership.

Section 20A of the SGA provides for the buyer to obtain an undivided share of goods in unascertained goods from an identified bulk. Section 20A applies to the goods when the buyer pays for the goods, which in the current case is 60 day credit period. Accordingly, the passing of ownership and risk will be determined by reference to what the parties have agreed or alternatively by reference to ss.16-19 of the SGA.

With reference to section 17 of the SGA, it has two parts. Part 1 states that where there is a contract for the sale of specific or unascertained goods. the title to the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred. For the purpose of ascertaining the intention of the parties, regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case. This is&nbsp.highlighted by the dictum of Diplock LJ in the case of RV Ward Ltd v Bignall, where it was held “very little is needed to give rise to the inference that property in specific goods is to pass only on delivery or payment ”.&nbsp.

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