Definitions and interpretation

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In this Law —

action includes counterclaim and set off;

agreement to sell includes a hire-purchase agreement;

business includes a profession and the activities of any government department, local authority or statutory undertaker;

buyer means a person who buys or agrees to buy goods or to hire them upon an agreement of hire-purchase;

conditional sale agreement means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled;

consumer agreement means a hire-purchase agreement where the owner makes the agreement in the course of a business and the goods to which the agreement relates —

are of a type ordinarily supplied for private use or consumption; and

are hired to a person who does not hold himself out as hiring them in the course of business;

contract of sale includes an agreement to sell as well as a sale;

credit-sale agreement means an agreement for the sale of goods under which the purchase price is payable by five or more instalments, not being a conditional sale agreement;

delivery means voluntary transfer of possession from one person to another;

document of title includes any bill of lading, dock warrant, warehouse-keeper's certificate, and warrant or order for the delivery of goods, and any other agreement used in the ordinary course of business as proof of the possession or control of goods, or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented;

fault means a wrongful act or default;

future goods means goods to be manufactured or acquired after the making of the contract of sale;

hire-purchase agreement means an agreement for the bailment of goods under which the bailee may buy the goods, or under which the property in the goods will or may pass to the bailee;

goods includes all chattels personal other than things in action and money and also includes emblements, industrial growing crops and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

property means the general property in goods and not merely a special property;

quality of goods includes their state or condition;

sale includes a bargain and sale as well as a sale and delivery;

seller means a person who sells or agrees to sell goods;

specific goods means goods identified and agreed upon at the time a contract of sale is made; and

warranty means an agreement with reference to goods which are the subject of a contract of sale, but collateral to the main purpose of such contract, the breach of which gives rise to a claim for damages, but not for a right to reject the goods and treat the contract as repudiated.

A thing is deemed to be done in good faith within the meaning of this Law when it is done honestly, whether it be done negligently or not.

A person is deemed to be insolvent within the meaning of this Law who either has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether or not he has become bankrupt

Goods are in a deliverable state when they are in such a state that the buyer would, under the contract, be bound to take delivery of them.

Goods of any kind are of merchantable quality if they are fit for the purpose or purposes for which goods of that kind are commonly bought as it is reasonable to expect having regard to any description applied to them, the price if relevant, and all the other relevant circumstances; and any reference in this, Law to unmerchantable goods shall be construed accordingly.

Defined Terms

actionagreement to sellbusinessbuyerconditional sale agreementconsumer agreementcontract of salecredit-sale agreementdeliverydocument of titlefaultfuture goodshire-purchase agreementgoodspropertyquality of goodssalesellerspecific goodswarrantygood faithinsolventdeliverable statemerchantable quality

Sale of Goods Act

7 Parts