Sale of Goods Act (Jamaica) – Core Concepts Review

These flashcards cover the major definitions, statutory provisions, rules, and remedies under the Jamaican Sale of Goods Act, providing a focused review for exam preparation.

What Jamaican statute governs contracts for the sale of tangible movable items?

The Sale of Goods Act (SOGA).

In a sale of goods, what are ‘choses in possession’?

Tangible, movable items that can be physically transferred, e.g., books, cars, furniture.

Give two examples of contracts that are NOT covered by the Sale of Goods Act.

Service contracts and land contracts (also sale of computer software).

State the statutory definition of a contract for the sale of goods.

A contract whereby the seller transfers or agrees to transfer property in goods to the buyer for a money consideration called the price (S.2(1) SOGA).

How does a ‘contract of sale’ differ from an ‘agreement to sell’?

In a contract of sale property passes immediately; in an agreement to sell, property will pass at a future time or on a condition being met.

List four acceptable formalities for making a sale of goods contract.

(1) In writing, (2) by word of mouth, (3) partly writing/partly oral, (4) implied from conduct (S.4).

From the seller’s perspective, what are ‘existing goods’?

Goods owned or possessed by the seller at the time of contract.

From the seller’s perspective, what are ‘future goods’?

Goods to be manufactured or acquired by the seller after the contract is made.

From the buyer’s perspective, define ‘specific (ascertained) goods’.

Goods that can be individually identified by the buyer at the time of contract.

What are ‘unascertained goods’?

Goods that cannot yet be identified by the buyer at the time of contract or are still part of a bulk.

Why is it crucial to classify the type of goods in a sale?

Because the rule determining when ownership passes depends on the type of goods.

What is the effect when specific goods have already perished unbeknownst to the seller at the time of contract?

The contract is void (S.7).

What happens if specific goods perish without fault before risk passes in an agreement to sell?

The agreement is avoided; neither party is liable, and any price paid must be refunded (S.8).

Name four ways the price of goods may be determined under SOGA.

(1) Fixed by contract, (2) fixed in a manner agreed, (3) by course of dealing, (4) a reasonable price if none was set (S.9(2)).

If price is to be fixed by a third-party valuer who fails to do so, what is the result?

The agreement is avoided, but any goods appropriated must be paid for at a reasonable price (S.10(1)).

General principle: When does risk pass in a sale of goods?

Risk follows ownership unless otherwise agreed (S.21).

Default place of delivery if contract is silent?

The seller’s place of business, or if none, the seller’s residence (S.29(1)).

Rule 1 on passing property: state it.

Unconditional contract for specific goods in a deliverable state – property passes when contract is made, even if payment or delivery is postponed.

Rule 2 on passing property: state it briefly.

If seller must do something to specific goods to put them into a deliverable state, property passes only when that is done and buyer has notice.

Rule 3 on passing property: what additional seller act delays transfer?

Weighing, measuring, testing, or similar act to ascertain price; property passes only after act is done and buyer notified.

Under Rule 4, when does property pass on ‘sale or return’?

(a) On buyer’s approval/act adopting, or (b) if goods retained, on expiry of fixed or reasonable time without rejection.

Summarize Rule 5 on unascertained or future goods.

Property passes when goods of contract description in deliverable state are unconditionally appropriated to the contract with mutual assent.

What is a ‘reservation of the right of disposal’?

Seller’s right to retain ownership until specified conditions (e.g., payment) are fulfilled even after delivery to carrier (S.20).

Differentiate a condition and a warranty in SOGA.

Condition: fundamental term; breach allows termination + damages. Warranty: lesser term; breach allows damages only.

Can parties label any term a “condition” and have courts accept it unquestioningly?

No. Courts examine the contract; labels are not conclusive (S.12(1)(b)).

List the three implied terms about title and quiet possession in every sale (S.13).

(1) Seller has right to sell, (2) buyer will enjoy quiet possession, (3) goods free from undisclosed encumbrances.

What is the implied condition under S.14 regarding description?

Goods must correspond with the description given at the time of contract.

Explain the implied condition of fitness for purpose (S.15(a)).

If buyer makes purpose known and relies on seller’s skill, goods must be reasonably fit for that purpose, provided seller deals in such goods.

When does the trade-name exception remove the fitness for purpose condition?

When a specified article is bought solely under its patent or trade name without reliance on seller’s skill.

Define ‘merchantable quality’ per S.15(b).

Goods bought by description from a seller dealing in such goods must be fit for the ordinary purposes, free from minor defects, safe, and durable, unless defects were apparent on examination.

State the threefold implied terms in a sale by sample (S.16).

Bulk must match sample, buyer must have chance to compare, and goods must be free from hidden defects making them unmerchantable.

What landmark tort case allows action against manufacturers for defective goods without privity?

Donoghue v Stevenson.

General rule on title from non-owners (S.22(1)).

Buyer cannot obtain better title than seller had unless owner is estopped.

Give two statutory exceptions allowing non-owners to pass good title.

(1) Seller in possession after sale (S.25(1)), (2) Buyer in possession with documents of title (S.25(2)) – plus estoppel, voidable title, court orders etc.

What two primary duties constitute performance of a sale of goods contract?

Seller must deliver goods; buyer must accept and pay for them (S.27-28).

If seller delivers less quantity than contracted, what are the buyer’s options?

Reject, or accept and pay at contract rate for quantity delivered.

Is a buyer obliged to accept instalment deliveries?

No, unless the contract provides otherwise.

Name the seller’s three ‘real’ remedies against the goods when property has passed.

(1) Lien, (2) stoppage in transit on buyer’s insolvency, (3) limited right of resale (S.40-47).

When can seller sue for the price?

If property has passed and buyer refuses to pay, or if price was payable on a fixed date regardless of property and buyer fails to pay (S.48).

List three remedies available to a buyer for seller’s breach.

(1) Action for non-delivery, (2) specific performance, (3) damages for breach of warranty.

What is the default rule on expense of putting goods into a deliverable state?

The seller bears the expense.