Commercial Law Revision 1

1.

Which of these is wrong.s. 2 SGA:A contract of sale of goods is a contract by which the sellers

A.

Transfers
B.

Or agrees to transfer
C.

Property in goods to the buyer
D.

With possession
E.

For a money consideration called the price

Correct Answer
D. With possession

Explanation
Possession is distinct from property or ownership.

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2.

Who said "[t]he English law of ownership and possession, unlike that in Roman law, is not a system of identifying absolute entitlement, but of priority of entitlement." in the case of Waverly Borough Council v Fletcher [1996] QB 334

Correct Answer
Auld LJ
Auld L.J.

Explanation
Auld LJ, or Auld L.J., said "[t]he English law of ownership and possession, unlike that in Roman law, is not a system of identifying absolute entitlement, but of priority of entitlement" in the case of Waverly Borough Council v Fletcher [1996] QB 334.

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3.

Which of the following were found to be contracts for the sale of goods (as opposed to contract for work and services):

A.

Contract to make a set of dentures (Lee v Griffin (1861))
B.

Contract to print a book (Clay v Yates (1856))
C.

Contract to paint a portrait (Robinson v Graves [1935])
D.

The supply of a meal in a restaurant (Lockett v Charles Ltd [1938])
E.

The supply and laying of a fitted carpet (Philip Head & Sons v Snowfronts Ltd [1970])

Correct Answer(s)
A. Contract to make a set of dentures (Lee v Griffin (1861))
D. The supply of a meal in a restaurant (Lockett v Charles Ltd [1938])
E. The supply and laying of a fitted carpet (Philip Head & Sons v Snowfronts Ltd [1970])

Explanation
The contracts for the sale of goods in this question are the contract to make a set of dentures, the supply of a meal in a restaurant, and the supply and laying of a fitted carpet. These contracts involve the transfer of goods from one party to another in exchange for payment. In Lee v Griffin (1861), the contract to make dentures was considered a contract for the sale of goods because the dentures were considered a tangible product. In Lockett v Charles Ltd (1938), the supply of a meal in a restaurant was deemed a contract for the sale of goods as the meal was a tangible product being provided. In Philip Head & Sons v Snowfronts Ltd (1970), the supply and laying of a fitted carpet was also considered a contract for the sale of goods as it involved the transfer of a tangible product, the carpet.

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4.

Which of the following have been found to be a contract for the sale of goods, as opposed to a contract for work and services?

A.

A fur jacket made to order (J Marcel Furriers Ltd v Tapper [1953])
B.

Supply and installation of animal feed hopper (H Parsons (Livestock) Ltd v Uttley Ingham & Co Ltd [1978])
C.

The supply of drugs by a vet when inoculating cattle (Dodd v Wilson)

Correct Answer(s)
A. A fur jacket made to order (J Marcel Furriers Ltd v Tapper [1953])
B. Supply and installation of animal feed hopper (H Parsons (Livestock) Ltd v Uttley Ingham & Co Ltd [1978])

Explanation
In Hyundai heavy Industries Co Ltd v Papadopoulos [1980] the court seem to consider that some contracts could be either and it may depend on the issue at hand. In this case the court found that the contract to build a ship was a contract for work and services in order to find that the party who had defaulted was entitled to repay the other for that work. In that case the "seller" was described as "builder".

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5.

S.5(1) SGA 1979:"the goods form part of the subject of a contract of sale may be either existing goods owned ... ................... by the seller, or goods to be manufactured or acquired by him after the making of the contract of sale, in ths Act called future goods."

Correct Answer(s)
or possessed

Explanation
This answer is correct because according to section 5(1) of the Sale of Goods Act 1979, the goods that form part of a contract of sale can be either existing goods owned or possessed by the seller, or goods that will be manufactured or acquired by the seller after the contract of sale is made. So, the term "possessed" is included in the definition of goods that can be part of a contract of sale.

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6.

S.5(3) SGA 1979:"An agreement purporting to sell .......... .......... does not amount to a sale, but an agreement to sell."

Correct Answer(s)
future goods

Explanation
This provision of the Sale of Goods Act 1979 states that an agreement that claims to sell future goods does not actually constitute a sale, but rather an agreement to sell. This means that if parties enter into a contract to sell goods that are not yet in existence or are not yet owned by the seller, it is considered an agreement to sell rather than a completed sale. The actual transfer of ownership and sale will occur once the goods become available or are acquired by the seller.

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7.

S.61(1)Specific goods means goods ................. ..... ................ ... at the time a contract of sale is made [and includes an undivided share, specified as a fraction or percentage, of goods identenfied as aforesaid] (as amended by Sale of Goods (Amendment) Act 1995).

Correct Answer(s)
identified and agreed on
identified and agreed

Explanation
The correct answer is "identified and agreed on" because specific goods refer to goods that have been specifically chosen and agreed upon by both parties at the time of the sale contract. This means that the goods have been clearly identified and there is mutual agreement on them. The additional phrase in brackets further clarifies that specific goods can also include an undivided share of goods that have been identified and agreed upon.

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8.

The rule in Section 16 SGA that:"[subject to section 20A below] where there is a contract for the sale of unascertained goods no property in the goods is transferred to the buyer unless and until the goods are ascertained." is known as the ............. rule

Correct Answer(s)
basic
the basic rule
basic rule

Explanation
The rule in Section 16 SGA states that property in unascertained goods is not transferred to the buyer until the goods are ascertained. This rule is commonly referred to as the "basic rule" or "the basic rule".

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9.

In Kursell v Timber Operators & Contractors Ltd [1927] there was an agreement to sell all the trees in the forest over a 15 year period conforming to certain measurements. The forest was nationalised so the question arose as to whether property had passed. Did property pass?

A.

Yes
B.

No

Correct Answer
B. No

Explanation
The goods were not sufficiently identified.

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10.

In what case did Lord Denning say of implied terms in the Act that they "ought not to be construed so narrowly as to force on parties to contract... [terms] different from what they must have intended"?

Correct Answer
Ashington Piggeries
Ashington Piggeries Ltd v Christopher Hill
Ashington Piggeries v Christopher Hill
Ashington Piggers Ltd v Christopher Hill [1972]