Sale of Goods Law Vocabulary

A comprehensive set of vocabulary terms and legal definitions based on the Sale of Goods Act 1957 as presented in the lecture notes.

Sale of Goods Act 1957 (SOGA)

The governing law for the sale of goods in Peninsular Malaysia (excluding Penang and Malacca), often supplemented by principles of English Law in Sabah and Sarawak.

Buyer

Under Section 2, defined as a person who agrees to buy goods.

Seller

Under Section 2, defined as a person who agrees to sell goods.

Price

The money consideration for a sale of goods.

Goods

Every kind of moveable property other than actionable claims and money, including items such as stock, shares, grass, and growing crops.

Specific Goods

Goods identified and agreed upon at the time a contract of sale is made.

Future Goods

Goods to be manufactured, produced, or acquired by the seller after the making of the contract of sale.

Existing Goods

The goods which form the subject of a contract of sale at the time the contract is made.

Contract of Sale

Under Section 4, a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.

Conditions

Under Section 12, terms that refer to the fundamental parts of a contract (primary concern). A breach gives the injured party the right to reject the contract.

Warranty

Under Section 12, a stipulation collateral to the main purpose of the contract (secondary concern). A breach gives the injured party the right to claim damages but not to reject the goods.

Quiet Possession

Under Section 14(b), an implied warranty that the buyer shall enjoy the goods without wrongful interference by the seller or third parties.

Free from Encumbrances

Under Section 14(c), an implied warranty that goods are free from any charge in favor of any third party not declared or made known to the buyer.

Implied Condition as to Description

Under Section 15, the requirement that where goods are sold by description, the goods must correspond with that description.

Caveat Emptor

The principle that the 'buyer must beware' and satisfy himself as to the quality of goods purchased, as there is generally no implied condition as to fitness.

Implied Condition as to Fitness for Particular Purpose

Under Section 16(1)(a), an exception to Caveat Emptor where the buyer informs the seller of the specific purpose and relies on the seller's skill/judgment.

Merchantable Quality

Under Section 16(1)(b), a condition that goods must fit the particular use for which they were sold and be free from discoverable defects.

Sale by Sample

Under Section 17, an implied condition that the bulk of the goods must correspond with the sample provided to the buyer.

Section 20 (Unconditional Contract)

Provides that property in goods passes to the buyer when the contract is made, regardless of whether payment or delivery is postponed.

Section 26 (Risk)

The rule that risk prima facie passes with property; goods remain at the seller's risk until property is transferred to the buyer, after which they are at the buyer's risk.

Unpaid Seller

Under Section 45, a seller is deemed 'unpaid' when the whole of the price has not been paid.

Rights of Unpaid Seller

Under Section 46, these include a lien on the goods, the right of stopping goods in transit, and a right of resale.

Section 55 (Suit for Price)

A remedy where the seller may sue the buyer if property has passed and the buyer wrongfully neglects or refuses to pay.

Section 57 (Damages for Non-delivery)

A remedy where the buyer may sue the seller if the seller wrongfully neglects to deliver the goods.