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FRIDAY, MAY 27, 1977
SALE OF GOODS (AMENDMENT) BILL 1977
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BUYERS OF GOODS WILL BE GIVEN BETTER PROTECTION IN RELATION TO THE TITLE TO AND QUALITY AND FITNESS OF THE GOODS PURCHASED UNDER THE SALE OF GOODS (AMENDMENT) BILL 1977 WHICH WAS PUBLISHED IN THE GOVERNMENT GAZETTE TODAY.
THE BILL, BASED ON THE UNITED KINGDOM'S SUPPLY OF GOODS (IMPLIED TERMS) ACT 1973, SEEKS TO UPDATE THE SALE OF GOODS ORDINANCE RELATING TO CONDITIONS AND WARRANTIES WHICH ARE IMPLIED IN A CONTRACT FOR THE SALE OF GOODS.
THE MAIN CHANGE TO THE EXISTING LAW IS TO RESTRICT THE FREEDOM OF THE PARTIES TO EXCLUDE BY AGREEMENT THE STATUTORY WARRANTIES AND CONDITIONS IN CONTRACTS FOR THE SALE OF GOODS.
WHEN THE ORDINANCE IS AMENDED, IN EVERY CONTRACT FOR THE SALE OF GOODS THERE IS AN IMPLIED WARRANTY ON THE PART OF THE SELLER THAT HE HAS A RIGHT TO SELL AND THAT THE GOODS ARE FREE FROM ANY CHARGE NOT OTHERWISE DISCLOSED TO THE BUYER.
WHERE THE SELLER HAS A LIMITED TITLE, HE MUST LET IT BE KNOWN TO THE BUYER.
WHERE THE SALE OF GOODS IS BY DESCRIPTION, THE GOODS MUST CORRESPOND WITH THAT DESCRIPTION EVEN IF THE GOODS HAVE BEEN EXPOSED FOR SALE AND WERE SELECTED BY THE BUYER.
WHERE THE SELLER SELLS GOODS IN THE COURSE OF A BUSINESS, THERE IS AN IMPLIED CONDITION THAT THE GOODS SUPPLIED ARE OF MERCHANTABLE QUALITY, THAT IS, FIT FOR THE PURPOSE FOR WHICH THEY ARE COMMONLY BOUGHT. BUT THERE IS NO SUCH CONDITION IF BEFORE THE CONTRACT IS MADE DEFECTS IN THE GOODS ARE DRAWN TO THE ATTENTION OF THE BUYER OR DEFECTS WHICH OUGHT TO BE APPARENT TO THE BUYER ON THE EXAMINATION OF THE GOODS.
WHERE A BUYER LETS A SELLER KNOW THE PURPOSE FOR WHICH THE GOODS ARE REQUIRED AND SHOWS THAT HE RELIES ON THE SELLER'S SKILL OR JUDGEMENT, THERE IS AN IMPLIED CONDITION, THAT THE GOODS SUPPLIED ARE REASONABLY FIT FOR THAT PURPOSE, WHETHER OR NOT THE PURPOSE IS ONE FOR WHICH THE GOODS ARE COMMONLY SUPPLIED. THE SELLER WILL NOT BE BOUND IF HE IS ABLE TO SHOW THAT THE BUYER DID NOT RELY OR IT WAS UNREASONABLE IN THE CIRCUMSTANCES TO RELY ON HIM.
IN A CONSUMER SALE, THAT IS, WHERE THE SELLER SELLS GOODS IN THE COURSE OF A BUSINESS AND THE GOODS ARE BOUGHT FOR PRIVATE USE OR CONSUMPTION, THE IMPLIED WARRANTIES AND CONDITIONS RELATING TO TITLE, MERCHANTABLE QUALITY AND FITNESS FOR A PURPOSE CANNOT BE EXCLUDED BY AGREEMENT. AND IF THERE IS A TERM TO THAT EFFECT IT WILL NOT BE VALID.
IN ANY CONTRACT FOR THE SALE OF GOODS, A TERM IN THE CONTRACT EXEMPTING THE SELLER FROM THE OBLIGATION OF THE IMPLIED WARRANTIES AND CONDITIONS WILL BE UNENFORCEABLE IF IT IS SHOWN THAT TO ALLOW THE SELLER TO RELY ON THE EXEMPTION CLAUSE WOULD BE UNFAIR OR UNREASONABLE.
THE ABOVE IMPLIED CONDITIONS AND WARRANTIES MAY BE VARIED OR EXCLUDED IN A CONTRACT FOR THE INTERNATIONAL SALE OF GOODS.