Question Tag: Sale of Goods

Search 500 + past questions and counting.
Professional Bodies Filter
Program Filters
Subject Filters
More
Tags Filter
More
Check Box – Levels
Series Filter
More
Topics Filter
More
  • 8 Marks

BCL – Nov 2018 – L1 – Q2c – Sale of Goods/high purchased

Determine when property in goods passes from the seller to the buyer in a sale of goods contract.

In a contract of sale of goods, at what time will property in the goods pass from the seller to the buyer? (8 marks)

  • Where there is a contract of sale of unascertained goods, the property in the goods is not transferred from the seller to the buyer unless the goods are ascertained.
    (Section 25 of the Sale of Goods Act, 1962 ACT 137) (5 marks)
  • Under a contract of sale of goods, property in the goods passes when they are delivered to the buyer.
    (Section 26 of the Sale of Goods Act, 1962 ACT 137) (3 marks)
  • 20 Marks

BCL – Nov 2017 – L1 – Q6 – High purchase, Contract Law

Discuss the rules for transfer of risk in sale of goods and explain the concepts of liquidated damages and quantum meruit.

a) State the essential rules concerning the transfer of risk in the sale of goods. (12 marks)

b) Explain the following:
i) Liquidated damages (4 marks)
ii) Quantum meruit (4 marks)

(Total: 20 marks)

a) Essential rules concerning transfer of risk in the sale of goods:

  • Intent to Transfer Risk: The risk in the goods in a contract of sale is transferred to the buyer when the parties intend it to be transferred. (3 marks)
  • Default Position: Unless a different intention appears, the goods are at the seller’s risk until the property in them passes to the buyer, after which the goods are at the buyer’s risk. (3 marks)
  • Fault-Based Risk: Where delivery of the goods has been delayed through the fault of either the buyer or the seller, the goods are at the risk of the party at fault as regards any loss, damage, or deterioration which might not have occurred but for the delay. (3 marks)
  • Bailee’s Liability: The duties or liabilities of either seller or buyer as a bailee of the goods of the other party or any destruction, loss, or deterioration of or damage to the goods caused by the fault of either party are not affected by anything in the law. (3 marks)

(Total: 12 marks)

b)

i) Liquidated damages: Liquidated damages refer to a specific figure agreed upon by the parties themselves as a reasonable pre-estimate of the loss brought by a breach of contract rather than as a penalty for breach. Liquidated damages have three main features:

  • There is a specific figure.
  • This specific figure is agreed to by the parties themselves.
  • This specific figure, which is agreed to by the parties themselves, is a reasonable pre-estimate of the loss occasioned by a breach of contract. (4 marks)

ii) Quantum meruit: Quantum meruit means “as much as it is worth.” It is not a claim for damages under a contract but an award to compensate a person in certain circumstances where a contract either never existed or subsequently ceased to exist, or where the contract has been breached, thereby preventing a party from performing under it. The claimant may be rewarded for their work or goods as much as they are worth in terms of reasonable value. (4 marks)

(Total: 20 marks)

  • 10 Marks

BCL – July 2023 – L1 – Q2a – Sale of Goods/Hire Purchase

Analyze the fitness for purpose in a sale of goods scenario and the seller's fundamental obligation under the Sale of Goods Act.

Kofi Adabla visited the showroom of Car Dealers Ltd, a company that sells used vehicles. Kofi Adabla informed Car Dealers Ltd that he needed a vehicle that could withstand the rugged terrain. Kofi Adabla had his Mechanic with him. The salesman at the Car Dealers Ltd recommended a slightly used vehicle to Kofi Adabla. Kofi Adabla’s Mechanic did a thorough examination of the vehicle after which Kofi Adabla decided to buy the vehicle at a price of GH¢55,000.

Three months after Kofi Adabla bought the vehicle, it developed a mechanical fault which was promptly repaired by Car Dealers Ltd under the terms of sale, exhausting the warranty. Three months later, the vehicle developed another mechanical fault but Car Dealers Ltd refused to repair it. Kofi Adabla now threatens to sue.

Required:

i) Explain whether Kofi Adabla will succeed on a claim that the vehicle was not fit for the purpose for which it was acquired and that there was a breach of the conditions of sale. (5 marks)

ii) State the fundamental obligation of the seller under the Contract for Sale of Goods under the Sale of Goods Act, 1962 (Act 137). (5 marks)

i) Under section 13 (1) of the Sale of Goods Act, 1962 ACT 137, there is no implied warranty or condition as to the quality or fitness for a particular purpose of goods supplied under a contract of sale except that there is an implied condition that the goods are free from defects which are not declared or known to the buyer before or at the time when the contract is made, but that condition is not an implied condition.

However, where the buyer has examined the goods, in respect of defects which could have been revealed by the examination, there is an implied condition that the goods are fit for the purpose – Section 13(1)(a)(i).

On the strength that the mechanic did a thorough examination and under section 13(1) (a) (i), Kofi Adabla fails to succeed on his claim.

(5 marks)

ii) In the sale of specific goods, the fundamental obligation of the seller is to deliver those goods to the buyer. In a sale of unascertained goods, the fundamental obligation of the seller is to deliver to the buyer goods substantially corresponding to the description or sample by which they were sold. Any provision in a contract of sale which is inconsistent with, or repugnant to, the fundamental obligation of the seller is void to the extent of the inconsistency or repugnance.

(5 marks)

  • 8 Marks

BCL – Dec2022 – Q2b – Sale of goods/hire purchase

Identify and explain issues in a contract of sale of goods involving government property.

As part of efforts in catering for Ghanaians who were displaced by the Russian war on Ukraine, the Government of Ghana erected tents in Poland. These tents are no longer in use because all Ghanaians were evacuated back to Ghana. As a result, the Government set up a disposal board to sell these tents. The board agreed to sell the tents to Dominika who left an amount of GH¢10,000,000 as a security deposit for her purchases. According to the written agreement between the disposal board and Dominika, the price for the tents and the dates on which payment was to be made were to be agreed between the parties as and when the tents became available. In July 2022, a new disposal board took over and refused to sell the tents to Dominika. They stated that they no longer considered themselves bound by the contract.

Required:
Identify FOUR (4) issues in the contract of sale of goods in the above scenario. (8 marks)

Issues in the Contract of Sale of Goods:

  1. Existence of a Contract of Sale:
    Whether or not there is a contract of sale of the tents between the Board (representing the Government of Ghana) and Dominika. According to Section 1(1) of the Sale of Goods Act, 1962 (Act 137), a contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price.
  2. Consideration in the Form of Security Deposit:
    Whether or not the GH¢10,000,000 as a security deposit is to be considered as consideration under the contract of sale. Section 1(1) of the Sale of Goods Act, 1962 (Act 137) requires a money consideration to validate the sale.
  3. Price Determination:
    Whether or not under the contract of sale of goods, the price is allowed to be fixed in a manner agreed upon by the parties. Section 6 of the Sale of Goods Act, 1962 (Act 137) permits the price to be determined by the method agreed upon by the parties.
  4. Breach of Fundamental Obligation:
    Whether the new Board representing the Government is guilty of its fundamental obligation to sell and deliver the tents to Dominika. According to Section 8(1) of the Sale of Goods Act, 1962 (Act 137), it is the duty of the seller to deliver the goods and the duty of the buyer to accept and pay for them in accordance with the terms of the contract.

Take control of your business data with insight and in-depth understanding by taking this course. 

Services

Contact Info

  • +233203701923
    +233543919232
  • info@noohrabusiness.com

Get In Touch

Follow us on our social media and get daily updates.

Facebook-f Twitter Linkedin-in Envelope