We use cookies to enhance your experience on our website. By continuing to use our website, you are agreeing to our use of cookies. You can change your cookie settings at any time.
Find out more
Jump to Content
Jump to Main Navigation
User Account
Personal Profile:
Sign in
or
Create
See all online law products
More
About
Guided Tour
Subscriber Services
Contact Us
FAQ
Help
Search
Browse all
Area of law
Financial Law [FBL]
International Commercial Arbitration [ICMA]
Private International Law [PRIL]
International Commercial Law [ICML]
Author
My Content
(0)
Recently viewed
(0)
Save Entry
My Searches
(0)
Recently viewed
(0)
Save Search
Print
Save
Cite
Email this content
Share This
Subscriber sign in
You could not be signed in, please check and try again.
Username
Please enter your Username
Password
Please enter your Password
Forgotten your password?
Don't have an account?
Sign in via your Institution
You could not be signed in, please check and try again.
Sign in with your library card
Please enter your library card number
View translated passages only
Oxford Law Citator
Contents
Expand All
Collapse All
Preliminary Material
Preface
Contents
Table of Cases
Table of Legislation
Table of Statutes
Australia
Canada
France
India
United Kingdom
United States
Table of Statutory Instruments
Court Rules
Table of International Instruments
EC Directives
Table of Conventions and Treaties
List of Abbreviations
Main Text
1 Introduction and Conclusion of the Contract
Preliminary Material
Introduction
Background to Modern Sale of Goods Legislation
Introduction.
1.01
Evolution of sale of goods law.
1.02
Characteristic transactions.
1.03
Sale of Goods Act 1979.
1.04
Consumer Rights Act 2015.
1.05
Reform of commercial sales law.
1.06
International harmonization.
1.07
Code and Common Law
Drafting style and complexity.
1.08
Codification.
1.09
Earlier case law.
1.10
Modern divergence.
1.11
Sale of Goods Act and Common Law
Background common law.
1.12
1.13
Flexibility.
1.14
Equity
Meaning of ‘common law’.
1.15
Innocent misrepresentation.
1.16
Evolving law.
1.17
Equitable property.
1.18
Other equitable principles.
1.19
Law Merchant
Meaning of law merchant.
1.20
Inconsistency with Act.
1.21
Mandatory provisions.
1.22
Conclusion of the Contract
Scope.
1.23
Formalities
Writing requirement.
1.24
Information requirements.
1.25
Bills of sale.
1.26
Consumer credit.
1.27
Unsolicited Goods
Deemed gift of unsolicited goods.
1.28
Other provisions.
1.29
Electronic Commerce
Contract formation.
1.30
Remedies.
1.31
Auctions
Formation principles.
1.32
Seller’s right to bid.
1.33
Reserve price.
1.34
Cancellation of the Contract and Early Termination
Withdrawal from consumer credit transactions.
1.35
Cancellation of consumer credit transactions.
1.36
Distance selling.
1.37
Distance selling: effects of cancellation.
1.38
Doorstep sales.
1.39
Doorstep selling: effects of cancellation.
1.40
Early termination.
1.41
Capacity
Scope.
1.42
Common law cases.
1.43
Unstated Price
General.
1.44
Executed and executory contracts.
1.45
Non-price items.
1.46
Agreements to agree.
1.47
Agreements to negotiate.
1.48
Third-party valuation.
1.49
2 Definition and Subject Matter of the Sale of Goods Contract
Preliminary Material
Introduction
General.
2.01
Definition of ‘Goods’
Definition of ‘goods’.
2.02
Writing requirement.
2.03
Crops and Natural Produce
Goods and land.
2.04
Nineteenth-century Case Law
Characterizing crops and produce.
2.05
Passing of property.
2.06
Fructus naturales.
2.07
Fructus industriales.
2.08
Statutory Definition
Extended statutory meaning.
2.09
Literal interpretation.
2.10
Straightforward interpretation.
2.11
Fixtures
Meaning of fixtures.
2.12
Sale of fixtures by land owner.
2.13
Minerals and Energy
Similarity to fructus naturales.
2.14
Energy and water.
2.15
Body Parts
Goods.
2.16
Public policy and illegality.
2.17
Implications of selling.
2.18
Things in Action and Money
Shares in a company.
2.19
Money.
2.20
Shares in Goods
Part owners.
2.21
Undivided shares.
2.22
Computer Software
Software.
2.23
Strict liability.
2.24
Ancillary software.
2.25
A ‘Money Consideration Called the Price’
General.
2.26
Legal tender.
2.27
Money’s worth.
2.28
Instruments and absolute payment.
2.29
Trading checks.
2.30
Credit Cards and Other Cards
Use of credit cards.
2.31
Credit cards and money consideration.
2.32
Discounted payment.
2.33
Problem issues.
2.34
Other cards.
2.35
Trading Stamps, Points, and Vouchers
Money consideration.
2.36
Basic Statutory Distinctions
General.
2.37
Contract and Conveyance
‘Contract of sale’.
2.38
‘Sale’.
2.39
Significance of sale.
2.40
Conditional Contracts
Meaning of conditional contract.
2.41
Existing and Future Goods
Forward selling.
2.42
Passing of property.
2.43
Goods only possessed by seller.
2.44
Specific and Unascertained Goods
Definitions.
2.45
Quasi-specific Goods
Unascertained goods and specific bulk.
2.46
Quasi-specific goods in the Act.
2.47
Ascertained Goods
Effect of ascertainment.
2.48
Summary
Significance of distinction between specific and unascertained.
2.49
General and Special Property
Definitions.
2.50
Ownership and conversion.
2.51
Abolition of ius tertii.
2.52
Meaning of general property.
2.53
Limited title sale.
2.54
The Contract of Sale and Related Transactions Involving Goods
General.
2.55
Issues.
2.56
Work and Materials Contracts
Range of contracts.
2.57
Interplay of labour and goods.
2.58
Possible tests.
2.59
Substance of the transaction.
2.60
Comparative value.
2.61
Materials supplied by customer.
2.62
Practical importance.
2.63
Barter and Trade-in Agreements
Analysis.
2.64
Trade-in.
2.65
Bailment Agreements
Meaning of bailment.
2.66
Hire Purchase
Similarity to sale.
2.67
Sham and artificial transactions.
2.68
Modern developments.
2.69
Pledge
Meaning of pledge.
2.70
Sale or Return and Sale on Approval
General.
2.71
Formation of contract.
2.72
Extended rejection rights.
2.73
Loans for Consumption
General.
2.74
Substituting the goods.
2.75
Bailment and agreed mixing.
2.76
Tenancy in common.
2.77
Bailment and tenancy in common.
2.78
Intention.
2.79
Practical issues.
2.80
Licences to Use or Consume
Sale or licence to use or consume?
2.81
Consequences.
2.82
Gift
Gift and contract.
2.83
Promotional Schemes
Goods with gifts.
2.84
Agency Agreements
Buyer or agent.
2.85
Relevant circumstances.
2.86
Security Agreements
Form of security agreement.
2.87
Limited application of Act.
2.88
Title-based schemes.
2.89
3 The Passing of Property
Preliminary Material
Introduction
General.
3.01
The Rule Structure
General.
3.02
Intention.
3.03
Reserving the right of disposal.
3.04
Consumer Sales.
3.05
Related non-consumer contracts.
3.06
Specific Goods
Section 18, Rules 1–3
Section 18, Rule 1
General rule.
3.07
Inconsistent intention.
3.08
Former effect of rule.
3.09
Exceptions to rule.
3.10
‘Unconditional’.
3.11
Section 18, Rule 2
Deliverable state.
3.12
Actions of the seller.
3.13
Notice and contrary intention.
3.14
Section 18, Rule 3
Weighing, measuring, and testing.
3.15
Nature of actions.
3.16
Sale or Return and Sale on Approval
General.
3.17
Function of rules.
3.18
Defeasible sales.
3.19
Issues.
3.20
The Buyer’s Acceptance
Forms of acceptance.
3.21
Approval and adoption.
3.22
Sub-bailment.
3.23
Personal use.
3.24
Reasonable time.
3.25
Bailee’s negligence.
3.26
Signifying non-approval.
3.27
Exclusion of Rule 4
Contrary agreement.
3.28
Unascertained and Future Goods
Ascertainment and Existence
General.
3.29
Existence.
3.30
Ascertainment
Identification.
3.31
Bulk portion.
3.32
Passive ascertainment.
3.33
Sale of share.
3.34
Undivided share in unascertained goods.
3.35
Overcoming Section 16
Attempts to avoid Section 16.
3.36
Equitable Property Rights
Pre-Act authorities.
3.37
Promise to assign.
3.38
Specific performance issues.
3.39
Re Wait
The transaction.
3.40
Summary.
3.41
Reasons of majority.
3.42
3.43
Express equitable rights.
3.44
Reasons for dissent.
3.45
Effect of Re Wait.
3.46
Tenancy in Common
Co-ownership.
3.47
Intention and co-ownership.
3.48
Ascertainment by documentary means.
3.49
Buyers and Insolvent Sellers
Reasons for assisting buyer.
3.50
Instalment sales.
3.51
Section 20A
Statutory change.
3.52
Required conditions.
3.53
3.54
3.55
The buyer’s share.
3.56
Shrinkage.
3.57
Deliveries out of bulk.
3.58
3.59
Protecting third parties.
3.60
Undivided shares and general property.
3.61
Undivided shares and passive ascertainment.
3.62
Contrary intention.
3.63
Undivided share and ‘goods’.
3.64
Consumer purchases.
3.65
Unconditional Appropriation
Presumptive rule.
3.66
Appropriation.
3.67
International sales.
3.68
Unconditional.
3.69
Tentative or final selection.
3.70
Unconditional Appropriation and Sections 20A–20B
Effect of undivided share on unconditional appropriation.
3.71
Identification of bulk by subsequent agreement.
3.72
Scope of Rule 5(1)
Deliverable state and contractual compliance.
3.73
Assent
Nature of assent.
3.74
Assent and examination.
3.75
Types of delivery.
3.76
Rule 5(2) and Carriers
Independent carrier.
3.77
Reserving the Right of Disposal
General.
3.78
International sales.
3.79
Reasons for reservation.
3.80
Reservation and bills of lading.
3.81
Nature of the Seller’s Reservation
Reserving seller’s rights.
3.82
General property.
3.83
Rebuttable presumption.
3.84
Non-statutory Examples of Reservation
Additional cases of reservation.
3.85
Bill of Lading and Bill of Exchange
Conditional passing of property.
3.86
Reservation of Title Clauses
Express clauses.
3.87
Extended reservation.
3.88
Simple reservation.
3.89
Buyer as fiduciary agent?.
3.90
All-moneys Clauses
Effect of clause.
3.91
Forfeiture relief.
3.92
Altered Goods
Mixture, attachment, and alteration.
3.93
Tracing Claims
Right to trace in equity.
3.94
Bailees and tracing.
3.95
Modern tracing developments.
3.96
Extended Title Reservation
Recharacterizing extended reservation clauses.
3.97
Creation of new goods.
3.98
Money proceeds.
3.99
Requirements for successful proceeds clauses.
3.100
Insolvency and Title Reservation
Receivership.
3.101
Administration.
3.102
Moratorium.
3.103
4 Risk, Mistake, And Frustration
Preliminary Material
Introduction
General.
4.01
Risk
Introduction.
4.02
Meaning of Risk
Events of risk.
4.03
Risk on seller.
4.04
Risk on buyer.
4.05
Risk and future events.
4.06
Allocation of Risk
Transfer of risk.
4.07
4.08
Consumer cases.
4.09
Consumer Rights Act 2015.
4.10
Risk and third-party bailees.
4.11
The bailee’s undertaking to deliver.
4.12
Undivided shares.
4.13
Risk and Quality Obligations
Transit and deterioration.
4.14
Long voyage.
4.15
Risk and Carriage
Unreasonable contract of carriage.
4.16
Choice of remedies.
4.17
Sending the goods by sea.
4.18
F.o.b. difficulties.
4.19
Seller’s risk agreement.
4.20
Necessary incident.
4.21
Risk and Export Sales
General.
4.22
C.i.f. contracts.
4.23
C.i.f. and post-contract perishing.
4.24
Retrospectivity and lost cargoes.
4.25
String sales.
4.26
Insurance shortfall.
4.27
Risk and Breach of Contract
General.
4.28
Unconnected breach.
4.29
Criticism.
4.30
Risk and Delayed Delivery
Fault and causation.
4.31
Buyer as owner.
4.32
Seller as owner.
4.33
Specific goods and specific bulks.
4.34
Bailee’s liability.
4.35
Risk and Third-Party Tortfeasors
Right of action against third party.
4.36
Actions against carriers.
4.37
Retrenchment.
4.38
Transfer of bill of lading and property.
4.39
Carrier’s immunity.
4.40
Frustration
General.
4.41
Sale of Goods Act.
4.42
Frustration and Risk
Relationship of risk to frustration.
4.43
Buyer on risk.
4.44
Events outside section 7.
4.45
Frustration and Fault
Effect of fault.
4.46
Seller’s and buyer’s liability.
4.47
Frustration and Quality Obligations
Relationship of frustration and quality obligations.
4.48
Deterioration and seller’s risk.
4.49
Section 7 and Foresight
Effect of foreseeability.
4.50
Partial and Temporary Frustration
Automatic discharge.
4.51
Difficulties with automatic discharge.
4.52
Construction of contract.
4.53
Seller’s duty to deliver lesser quantity.
4.54
Buyer’s option or obligation?
4.55
Delayed performance.
4.56
Price apportionment and instalment delivery.
4.57
Payment exceeding buyer benefit.
4.58
Pro-rating goods in short supply.
4.59
Frustration and Unascertained Goods
Availability in the market.
4.60
Agreed source of supply.
4.61
Third-party suppliers.
4.62
Express Clauses
General.
4.63
Force majeure and prohibition of export.
4.64
Other cases.
4.65
Consequences of Frustration
Prospective discharge.
4.66
Effect of 1943 Act.
4.67
Sale of goods and the Act.
4.68
Mistake
General.
4.69
Section 6.
4.70
A case of construction.
4.71
Implied conditions precedent and liability.
4.72
Liability in tort.
4.73
Events other than perishing.
4.74
Part perishing.
4.75
Operative common mistake.
4.76
Non-existent goods.
4.77
Equitable mistake.
4.78
5 The Seller’s Duty and Power to Transfer Title
Preliminary Material
Introduction
General.
5.01
The Seller’s Duty to Transfer Title
Right to sell.
5.02
Express term.
5.03
Right to sell and ownership.
5.04
Extent of general property.
5.05
Particular cases.
5.06
Pre-Act decisions.
5.07
Title and Failure of Consideration
Fundamental obligation.
5.08
Criticism.
5.09
Change of position.
5.10
Failure of consideration and acceptance.
5.11
Buyer’s windfall benefit.
5.12
Nature of rescission.
5.13
Damages.
5.14
Law reform.
5.15
Chain transactions.
5.16
Criticism of result.
5.17
Reasoning.
5.18
Feeding the seller’s title.
5.19
Two transfers.
5.20
Limited Title Sales and Exclusion Clauses
Prohibition of exclusion.
5.21
Title and fundamental breach.
5.22
Identifying limited title sales.
5.23
Buyer’s awareness.
5.24
Criticism.
5.25
Express limited title.
5.26
Range of Section 12(1)
Beyond title.
5.27
Second sale.
5.28
Section 12(1) and nemo dat.
5.29
Seller’s immunity under section 12(1).
5.30
Instalment sales and third-party demands.
5.31
Non-sale Contracts
Hire purchase.
5.32
Legislation.
5.33
Hire.
5.34
Section 12 Warranties
General.
5.35
Overlap.
5.36
Quiet Possession
General.
5.37
Later third-party rights.
5.38
Duration of seller’s liability.
5.39
Sellers and sub-buyers.
5.40
Nature of seller’s action.
5.41
Identity of third-party interferer.
5.42
The Nemo Dat Rule and its Exceptions
Protecting ownership and commerce.
5.43
Principal parties.
5.44
Common law exception to nemo dat.
5.45
Statutory exceptions to nemo dat.
5.46
Money and negotiable instruments.
5.47
Sales under a Voidable Title
General.
5.48
Contract void or voidable?
5.49
No contract.
5.50
Affirmation of Cundy v Lindsay.
5.51
Construing documents.
5.52
Face-to-face dealings.
5.53
Strength of presumption.
5.54
Innocent purchaser and prior contract.
5.55
Rescission
Avoiding the contract.
5.56
Election.
5.57
Avoidance and third-party purchasers.
5.58
Law reform.
5.59
Burden of Proof
Burden on owner.
5.60
Apparent Authority and Apparent Ownership
Sale by apparent owner or agent.
5.61
Apparent authority.
5.62
Usual authority.
5.63
Estoppel by Representation
General.
5.64
Example.
5.65
Third party unaware of representation.
5.66
Meaning of representation.
5.67
Estoppel by Conduct
Transfer of possession or documents.
5.68
Example.
5.69
Document of title.
5.70
Indicia of Title
Possession plus indicia.
5.71
Result.
5.72
Dissent.
5.73
Inherent Agency Power
A controversial case.
5.74
Reasons for inherent agency power.
5.75
Criticism.
5.76
Estoppel and inherent agency power.
5.77
Result.
5.78
Documents of title cases.
5.79
A further example.
5.80
Estoppel by Negligence
Estoppel by conduct and by negligence.
5.81
Effect of owner’s negligence.
5.82
A duty owed to the world?
5.83
Requirements of the tort of negligence.
5.84
Absence of duty owed by owner.
5.85
Risk.
5.86
Non est factum.
5.87
Mercantile Agency
Statutory extension to estoppel.
5.88
Mercantile Agents
Definition of mercantile agent.
5.89
Retail sales.
5.90
First time as agent.
5.91
Types of mercantile agent.
5.92
Receipt as a Mercantile Agent
A judicial gloss on the section.
5.93
Examples.
5.94
Disposing Power of Mercantile Agents
Effect.
5.95
Possession.
5.96
Owner’s consent.
5.97
Evidentiary presumptions.
5.98
Ordinary Course of Business
Meaning.
5.99
Business-like behaviour.
5.100
Question of fact.
5.101
Car trade.
5.102
Transactions of the agent.
5.103
Agent’s possession.
5.104
Documents of Title
Extended meaning.
5.105
Non-negotiable documents.
5.106
Negotiable documents.
5.107
Pledges
Various provisions.
5.108
Specific advances.
5.109
General lien.
5.110
Consignments
General.
5.111
Relationship to lien.
5.112
Advances.
5.113
Good Faith and Notice
General.
5.114
Actual notice.
5.115
Constructive notice.
5.116
Burden of proof.
5.117
The Seller in Possession
Introduction.
5.118
Sale of Goods Act and Factors Act
Dual provisions.
5.119
Single code.
5.120
Interpretation issues.
5.121
Disposing Power of Seller
Sale and agreement to sell.
5.122
Equitable property.
5.123
Conditional sale.
5.124
Chattel Mortgages
Seller as mortgagor.
5.125
Interpretation of section 62(4).
5.126
5.127
Constructive Possession
Reasons for protecting third party.
5.128
Constructive possession as possession.
5.129
Quality of Seller’s Possession
Continuity of possession and quality.
5.130
Floor plan transactions.
5.131
Bailee or seller?
5.132
Broken possession.
5.133
Continuity of possession and constructive delivery.
5.134
Appreciation of risk.
5.135
Criticism.
5.136
Delivery and Transfer
Goods and documents.
5.137
Transfer of documents.
5.138
Constructive delivery.
5.139
Documents of title problem.
5.140
The 1995 Property Reforms
Undivided shares.
5.141
Later buyer.
5.142
Shrinkage in the bulk.
5.143
Sub-buyers.
5.144
Notice and good faith.
5.145
Dispositions
Meaning.
5.146
Pledge and disposition.
5.147
Disposition.
5.148
Repossession and unilateral avoidance.
5.149
Effect of Section 24
Interpretation difficulties.
5.150
Effect of cases.
5.151
‘Owner’.
5.152
Good Faith and Notice
Meaning.
5.153
The Buyer in Possession
Introduction.
5.154
‘Bought or Agreed to Buy’
Interpretation of ‘bought’.
5.155
Interpretation of ‘agreed to buy’.
5.156
Consent of the Seller
Type of consent.
5.157
Mercantile Agency and Buyer in Possession
Acting as mercantile agent.
5.158
Meaning of ordinary course.
5.159
Protecting the innocent purchaser.
5.160
‘Seller’ and ‘Owner’ the Same Person
Interpretation difficulty.
5.161
Authority.
5.162
Lien and Stoppage in Transit
Dual provisions.
5.163
‘Transfer’.
5.164
Delivery by Buyer in Possession
Constructive delivery.
5.165
Floor plan.
5.166
Constructive delivery and undivided shares.
5.167
Voluntary.
5.168
Criticism.
5.169
Agreement to sell by buyer in possession.
5.170
Consumer Conditional Sales
Special treatment.
5.171
Part III of the Hire Purchase Act 1964
Scope.
5.172
Disposition.
5.173
Deeming provision.
5.174
Private purchaser.
5.175
Operation of legislation.
5.176
Time of absence of notice.
5.177
Nature of notice.
5.178
Presumptions.
5.179
Other legislation.
5.180
Other Powers of Sale
Validity and title.
5.181
Common law powers of sale.
5.182
Implied intention to confer good title.
5.183
6 Delivery, Acceptance, and Payment
Preliminary Material
Introduction
General.
6.01
The Seller’s Duty to Deliver
Meaning of Delivery and Acceptance
Delivery.
6.02
Constructive delivery.
6.03
Delivery and shipping terms
6.04
Acceptance.
6.05
Acceptance and constructive delivery.
6.06
Other acts of buyer.
6.07
Place of Delivery and Acceptance
General rules.
6.08
Constructive delivery and place.
6.09
Shipping terms and place.
6.10
Expenses.
6.11
Place of acceptance.
6.12
Time of Delivery and Acceptance
General.
6.13
No delivery date.
6.14
Time of delivery in consumer sales.
6.15
Ready and willing.
6.16
Express Delivery Terms
General.
6.17
Length of delivery period.
6.18
Requirements contracts.
6.19
Size of requirements instalments.
6.20
Response to buyer’s requirements.
6.21
Abandonment
General.
6.22
Abandonment by inactivity.
6.23
Basis of abandonment.
6.24
Delivery, Acceptance, and Time of the Essence
General.
6.25
Importance of timely performance.
6.26
Innominate terms.
6.27
Timely Delivery
Delivery and time of the essence.
6.28
Buyer’s pre-delivery obligation.
6.29
Reasons for time being of the essence.
6.30
Certainty.
6.31
Other obligations.
6.32
Particular contracts.
6.33
Contrary intention.
6.34
Making time of the essence.
6.35
Timely Acceptance
Introduction.
6.36
Time of the essence of acceptance.
6.37
Spot transaction.
6.38
Equitable Ideas
Fusion of law and equity.
6.39
The Seller’s Duty to Deliver the Agreed Quantity
General.
6.40
Indivisible (or Entire) Contracts and Short Delivery
Short delivery.
6.41
Illustrative case.
6.42
Microscopic and slight shortfall.
6.43
New contract.
6.44
Long Delivery
Introduction.
6.45
Microscopic and slight excess.
6.46
Estimated Quantities
Words of estimation.
6.47
Unascertained and future goods.
6.48
Consumer sales.
6.49
Entire or Severable?
Severable and instalment contracts.
6.50
Construction.
6.51
Election to sever.
6.52
Instalments and Quantity
Quantity in sections 30 and 31.
6.53
First instalment.
6.54
Rejecting individual instalments.
6.55
Consumer Instalment Contracts.
6.56
The Seller’s Documentary Delivery Obligations
General.
6.57
Trade terms.
6.58
C.i.f. Contracts
Introduction.
6.59
Seller’s duties.
6.60
Invoice.
6.61
Insurance Documents
Insurance policy.
6.62
Absence of insurance.
6.63
Bill of Lading
Functions of bill of lading.
6.64
Negotiable document.
6.65
Type of bill of lading.
6.66
On-board bill.
6.67
Received for shipment bill.
6.68
Negotiability and transferability.
6.69
Bills of Lading in Sets
Originals.
6.70
Order of presentation.
6.71
Tender of incomplete set.
6.72
Contractual requirement.
6.73
Contents of Bill of Lading
Evidencing the contract of affreightment.
6.74
Clean bill.
6.75
Bills of Lading and Letters of Credit
Bills of lading and banks.
6.76
Standard of compliance.
6.77
Relaxation.
6.78
Time Obligations and Shipping Documents
Forwarding documents.
6.79
Issued on shipment.
6.80
Accurate dating.
6.81
Continuous Documentary Coverage
Transhipment.
6.82
The bill of lading and the first carrier.
6.83
Availability of claims against the carrier.
6.84
Delivery Orders
Ship’s delivery orders.
6.85
Import and Export Licences
Principal questions.
6.86
F.o.b. contracts
6.87
No general rule.
6.88
Cooperative behaviour.
6.89
C.i.f. contracts.
6.90
Other contracts.
6.91
Strictness of duty.
6.92
Undertaking stricter duty.
6.93
The Buyer’s Duty to Pay
General.
6.94
Payment by cheque.
6.95
Place of payment.
6.96
Documentary sales.
6.97
Documentary Letters of Credit
Documents on acceptance.
6.98
Documentary letters of credit: general.
6.99
Types of credit.
6.100
Binding contract and payment.
6.101
Time and Payment
Time of payment.
6.102
Timely payment.
6.103
Unlawful repudiation.
6.104
Displacing the presumption.
6.105
Opening Letters of Credit
Unstated date of opening: c.i.f.
6.106
Before the shipment period.
6.107
F.o.b. contracts.
6.108
Criticism.
6.109
Meaning of opening a credit.
6.110
Conditions precedent to opening the letter of credit.
6.111
Buyer’s liability for failure to open a credit.
6.112
Payment and Examination
Examination.
6.113
Examination postponed.
6.114
Payment before examination.
6.115
Payment under Letters of Credit
Documentary compliance.
6.116
Copies and originals.
6.117
Notice of discrepancy and rejection.
6.118
Fraud.
6.119
Injunctive and other relief.
6.120
Bank resisting payment.
6.121
Other possible exceptions to payment.
6.122
Illegality.
6.123
Concurrence of Payment and Delivery
General.
6.124
Differential development.
6.125
Separation of buyer’s duties.
6.126
Order of performance.
6.127
Waiver of Delivery and Payment Obligations
Meaning of waiver.
6.128
Election.
6.129
Distinguishing waiver and election.
6.130
Difficulty of drawing distinction.
6.131
A difficult case.
6.132
Effect of waiving delivery date.
6.133
Reviving time of the essence after waiver.
6.134
Waiver and place of delivery.
6.135
7 The Implied Terms of Description, Fitness, and Quality
Preliminary Material
Introduction
General.
7.01
Additional implied terms.
7.02
Caveat emptor.
7.03
Correspondence with Contractual Description
General.
7.04
Consumer sales.
7.05
Description and Satisfactory Quality
Buying by description.
7.06
Quality and description.
7.07
Significance of examination.
7.08
Sale by Description
Goods exposed for sale.
7.09
Unascertained goods.
7.10
Specific goods.
7.11
Rudimentary description.
7.12
Words of Description
Summary of modern law.
7.13
Development.
7.14
Description and non-delivery.
7.15
Specific goods unseen.
7.16
Essence or identity.
7.17
Incidental quality.
7.18
Specific and Unascertained Goods
Range of description: unascertained goods.
7.19
Range of description: specific goods.
7.20
Unseen goods.
7.21
The Modern Law
Specific goods in modern times.
7.22
Unascertained goods in modern times.
7.23
Restricting description.
7.24
Essential nature.
7.25
Identification and identity.
7.26
Absence of breach.
7.27
Identification and identity distinguished.
7.28
Description and general contract law.
7.29
Meaning of identity.
7.30
Alignment with General Contract Law
Expertise and reliance.
7.31
Innovative character of reliance.
7.32
Opinion and description.
7.33
Satisfactory Quality
Evolution of satisfactory quality.
7.34
Authorities on merchantable quality.
7.35
Sale in the Course of a Business
Nature of business sale.
7.36
‘Business’.
7.37
Equipment sales.
7.38
Immunity of private sellers.
7.39
Rationale.
7.40
Transferring liability.
7.41
Development of Merchantable Quality
Merchantable quality and description.
7.42
Example.
7.43
Opportunity to examine.
7.44
Fitness for purpose.
7.45
Summary of pre-Act position.
7.46
Judicial Definitions of Merchantable Quality
Aspects of merchantable quality.
7.47
Relevance of market place.
7.48
An alternative definition.
7.49
Price.
7.50
Another test.
7.51
Reassessment of elements of merchantable quality.
7.52
Alternative use.
7.53
Merchantable quality and fitness for purpose.
7.54
Criticism.
7.55
A special case.
7.56
Other terms of the contract.
7.57
The 1973 Definition of Merchantable Quality
First statutory definition.
7.58
Reasonable fitness and reasonable acceptance.
7.59
Protean character of merchantable quality.
7.60
Satisfactory Quality
Introduction
New definition.
7.61
Consumer sales.
7.62
Changes wrought by the definition of satisfactory quality.
7.63
Average or basic quality?
7.64
Fitness for Purpose
All common purposes.
7.65
All purposes.
7.66
Defining purpose or purposes.
7.67
‘Appropriate cases’.
7.68
Price
Ordinary purpose and price.
7.69
Price as substitute for disclosure.
7.70
Defects
Relevant defects.
7.71
Examples of defects.
7.72
Public safety standards.
7.73
Appearance and Finish and Minor Defects
Manufactured quality.
7.74
Quality standard and trivial defects.
7.75
Example.
7.76
Durability
Significance.
7.77
Durability and the consumer presumption.
7.78
Safety
Dangerous goods.
7.79
Unsafe for any purpose.
7.80
Public Statements in Consumer Sales
Public statements.
7.81
Second-hand Goods
Second-hand goods and reduced expectations.
7.82
Resale
Responsibility for resaleability.
7.83
Impact of new definition.
7.84
Examination
Pre-contract examination.
7.85
Nature of examination.
7.86
Reasonable examination.
7.87
Conditional sale difficulty.
7.88
Notifying buyer of defects.
7.89
Reasonable Fitness for Purpose
General.
7.90
Fitness and express warranty.
7.91
Development of Fitness for Purpose
Judicial intervention.
7.92
Manufacturers and other sellers.
7.93
Standard goods.
7.94
Seller’s undertaking.
7.95
Pre-Act position.
7.96
Sale in the Course of a Business
Equipment sales.
7.97
Strict Liability
Hybrid liability.
7.98
Defect not discoverable.
7.99
Disclosure and Purpose
Degree of disclosure.
7.100
Commonplace and esoteric purposes.
7.101
Leading cases.
7.102
Market conditions.
7.103
Market behaviour and purpose.
7.104
Liability and the seller’s knowledge.
7.105
General unfitness.
7.106
Remoteness of damage.
7.107
Dissent.
7.108
Product liability implications.
7.109
Buyer’s incentive to disclose.
7.110
Hypersensitive Buyers
Informing the seller.
7.111
Reasonable Fitness
A flexible standard.
7.112
Minor defects.
7.113
Sensitive markets.
7.114
Improvable goods.
7.115
Second-hand Goods
Diminished standard of liability.
7.116
Lesser or minimum standard?
7.117
Durability
Purpose use and breach date.
7.118
Carriage of goods.
7.119
Repairs and spare parts.
7.120
Law reform.
7.121
Reliance
Exclusive or partial reliance?
7.122
Examination and reliance.
7.123
Seller’s response to buyer’s disclosure.
7.124
Pre-contract discussions.
7.125
Extravagant purposes.
7.126
Example.
7.127
Goods in short supply.
7.128
Product liability considerations.
7.129
Partial Reliance
Types of partial reliance.
7.130
Apportioning responsibility.
7.131
Negligent Buyers
Contributory negligence.
7.132
Trade Name
Buyer’s reliance.
7.133
Negligence and the Seller
Seller’s instructions.
7.134
Negligence or strict liability?
7.135
Warning adequate.
7.136
Convergence of liability standards.
7.137
Terms Implied in a Sale by Sample
Description and sample.
7.138
Correspondence with quality of sample.
7.139
Additional qualities.
7.140
Examination of sample.
7.141
Nature of examination.
7.142
Consumer sales.
7.143
Criticism.
7.144
Other Implied Terms
‘Usage’.
7.145
Manufacturers.
7.146
Terms in Transactions Similar to Sale
Kinship of sale and related contracts.
7.147
Modern codification.
7.148
Services and work and materials.
7.149
Fault and strict liability.
7.150
New product.
7.151
Design.
7.152
Hire purchase.
7.153
Hire.
7.154
Consumer contracts for digital content.
7.155
8 Other Liabilities of the Seller and Liabilities of Third Parties
Preliminary Material
Introduction
General
8.01
Other Liabilities of the Seller
Statements.
8.02
Development of Express Warranty
Exclusion from Sale of Goods Act.
8.03
Warranty and deceit.
8.04
False affirmation.
8.05
Dearth of case law.
8.06
Later developments.
8.07
Innocent misrepresentation and negligent misstatement.
8.08
Modern Law of Express Warranty
An evidence-based test.
8.09
Commendation and warranty.
8.10
Negotiations.
8.11
Importance of statement.
8.12
Skill and knowledge.
8.13
Opinion.
8.14
Summary.
8.15
Deemed terms in consumer cases.
8.16
Deceit
Constructive fraud.
8.17
Definition of fraud.
8.18
Innocent Misrepresentation
Innocent and negligent misrepresentation.
8.19
Reasons for innocent misrepresentation.
8.20
Definition of actionable misrepresentation.
8.21
Rescission.
8.22
Reasons for equitable intervention.
8.23
Drastic nature of rescission.
8.24
Controlling rescission.
8.25
Discretionary or self-executing remedy?
8.26
Resolution.
8.27
Misrepresentation and Insolvency
Important issue.
8.28
Revesting of property.
8.29
Trustees-in-bankruptcy and third parties.
8.30
Company liquidation.
8.31
Revesting and money.
8.32
Revesting and insolvency.
8.33
Subsisting contract.
8.34
Effect of Misrepresentation Act 1967
Limited effect of Act.
8.35
Continuing effect of inducing misrepresentation.
8.36
Execution bar.
8.37
Damages
Damages and ensuing contract.
8.38
Damages actions.
8.39
Damages under section 2(1).
8.40
Damages and scope of duty.
8.41
Criticism.
8.42
Damages ‘in lieu’ of rescission.
8.43
Differing views.
8.44
Measure of damages under section 2(2).
8.45
Relevant factors.
8.46
Comparison with breach of contract.
8.47
Negligent Misstatement in Tort Law
Assumption of responsibility.
8.48
Reduced importance of negligent misstatement.
8.49
Criminal and Regulatory Legislation
Compensation orders.
8.50
Unfair Trading
Unfair commercial practices.
8.51
Definition of unfairness.
8.52
Schedule 1.
8.53
Misleading action.
8.54
Misleading omissions.
8.55
Aggressive commercial practices.
8.56
Examples of unfair commercial practices.
8.57
Mental element.
8.58
Defences.
8.59
Civil Recourse
Civil redress.
8.60
Requirements for civil redress.
8.61
Unwinding the contract.
8.62
The right to a discount.
8.63
The right to damages.
8.64
Payment surcharges.
8.65
Liabilities of Third Parties
General.
8.66
The Indemnity Chain
Privity of contract.
8.67
Breaks in the indemnity chain.
8.68
Negligence
Types of negligence.
8.69
Economic loss.
8.70
Policy.
8.71
Express Warranty and Guarantee
Promoting sales.
8.72
Collateral contract.
8.73
Manufacturers’ guarantees and collateral contracts.
8.74
Reasons for collateral contract liability.
8.75
Proposals to extend producer liability.
8.76
2002 Regulations.
8.77
Guarantees as exemption clauses.
8.78
Product Liability and Extended Warranty
Extended warranty or strict product liability?
8.79
Extending producer liability in the US.
8.80
Devices to extend liability.
8.81
Tort
US position.
8.82
Reform
Canadian proposals.
8.83
Arguments for producers’ economic loss liability.
8.84
UK consultation.
8.85
Contracts (Rights of Third Parties) Act 1999.
8.86
Express identification of third party.
8.87
Direct enforcement by third party.
8.88
Implied terms problem.
8.89
Irrevocability of third-party’s right.
8.90
European green paper.
8.91
The Consumer Protection Act 1987
Strict liability in tort.
8.92
Products and goods.
8.93
‘Producer’.
8.94
Producer’s liability.
8.95
Expectations.
8.96
Better products.
8.97
State of the art.
8.98
Additional defences.
8.99
Damage.
8.100
Claimants.
8.101
Limitations.
8.102
Issuers of Credit Cards
Credit.
8.103
Reasons for card issuer liability.
8.104
Issuers and supplier liability.
8.105
Use of cards overseas.
8.106
Recruitment of merchants.
8.107
Means of redress.
8.108
9 Unfair Contract Terms
Preliminary Material
Common Law
Introduction.
9.01
Definition of exemption clause.
9.02
Definition and exclusion.
9.03
Force majeure clauses.
9.04
Force majeure clauses as frustration clauses.
9.05
Incorporation.
9.06
Signature and estoppel.
9.07
Test for incorporation.
9.08
Recipient’s knowledge.
9.09
Course of dealing.
9.10
Contra proferentem interpretation.
9.11
Modern contractual interpretation.
9.12
Weight of contra proferentem rule.
9.13
Excluding liability for negligence.
9.14
‘Consequential damage’.
9.15
Entire agreement and related clauses.
9.16
Non-reliance and evidential estoppel.
9.17
Fraud.
9.18
Fundamental breach.
9.19
Other rules of construction.
9.20
Statute
The Unfair Contract Terms Act 1977
Introduction.
9.21
Clauses dealt with by the Act.
9.22
Negligence.
9.23
Dealing on another’s standard terms.
9.24
Different performance.
9.25
Statutory implied terms.
9.26
Criteria of reasonableness.
9.27
Monetary limitation.
9.28
Burden of persuasion.
9.29
Effect of the Act on exemption clauses.
9.30
Wording of the Act.
9.31
Misrepresentation.
9.32
The Consumer Rights Act 2015
Consumer sales.
9.33
Goods.
9.34
Clauses excluding or restricting liability.
9.35
Unfairness in consumer contracts.
9.36
Significant imbalance.
9.37
Excluded criteria.
9.38
Assessing unfairness.
9.39
The indicative list.
9.40
Effect of unfairness.
9.41
‘Plain, intelligible language’.
9.42
Enforcement of the Consumer Rights Act.
9.43
Consumer Protection Act.
9.44
10 Termination of the Contract for Breach
Preliminary Material
Introduction
General.
10.01
Loss of termination right.
10.02
Prospective effect of termination.
10.03
Discharge: Conditions, Warranties, and Innominate Terms
Policy issues.
10.04
Party autonomy.
10.05
Reasonable limits and reasonable expectations.
10.06
Unfair contract terms.
10.07
Penalty clauses.
10.08
Breach of Contract Principles before the Codification of Sale
Debt, covenant, and assumpsit.
10.09
The dependency principle.
10.10
Failure of consideration.
10.11
Inequality of damages.
10.12
Unitary termination rules.
10.13
Effects of new rules.
10.14
Statutory Termination Rules before the Sale and Supply of Goods Act 1994
Conditions and warranties.
10.15
Provisions of the Act.
10.16
Treatment of implied terms.
10.17
Failure of consideration.
10.18
Execution and benefit.
10.19
Acceptance rules.
10.20
Extending time for acceptance.
10.21
Conditions and section 35.
10.22
Slight Breach and Section 15A
Restricting termination rights.
10.23
Burden of persuasion.
10.24
Slight breach and cure.
10.25
Minor defects.
10.26
Unreasonable conduct.
10.27
Exclusion.
10.28
Commercial sales.
10.29
Termination Developments in Modern Contract Law
Complex undertakings.
10.30
Repudiatory breach.
10.31
Two terms or three terms?
10.32
Terms as conditions.
10.33
Commercial usage.
10.34
Hongkong Fir and sale of goods.
10.35
Express terms and the Act.
10.36
International commodity contracts.
10.37
Predicting termination rights.
10.38
Time obligations: commercial cases.
10.39
Time obligations: consumer cases.
10.40
Termination protocol.
10.41
Express termination and cancellation clauses.
10.42
Material breach.
10.43
Irremediable breach.
10.44
Express terms: cancellation and termination.
10.45
Non-performance clauses.
10.46
Automatic termination.
10.47
The Buyer’s Rights of Examination and Rejection
General
Rejection and termination.
10.48
The Sale of Goods Act.
10.49
Coordination of rejection and termination.
10.50
Submission.
10.51
Examination
Right of examination.
10.52
Place of examination.
10.53
Carriage.
10.54
Nature of examination.
10.55
Failure to allow examination.
10.56
Waiving right of examination.
10.57
Acceptance
Scope of Acceptance Rules
Partial rejection.
10.58
Extent of partial rejection.
10.59
Wrong goods.
10.60
Meaning of Acceptance
Methods of acceptance.
10.61
Meanings of acceptance.
10.62
Election and acceptance.
10.63
Extended rejection rights.
10.64
Intimation of Acceptance
Meaning of ‘intimation’.
10.65
Conditional statements.
10.66
Acts Inconsistent with the Seller’s Ownership
Meaning of inconsistent act.
10.67
Transfer of rights to third party.
10.68
Inconsistent act and examination.
10.69
Seller delivering to sub-buyer.
10.70
Relationship of examination to acceptance.
10.71
Place of rejection.
10.72
Reversionary ownership and inconsistent act.
10.73
Shipping documents.
10.74
Lapse of Time
General.
10.75
Difficulty of rejecting.
10.76
Factors in assessing reasonable time.
10.77
Length of period.
10.78
Inconsistent case.
10.79
Agreeing to repairs.
10.80
Suspending the passage of time.
10.81
No conclusive test.
10.82
Complaints.
10.83
Other Contracts and Affirmation
Hire and hire purchase.
10.84
Instalment Contracts
Entire and severable contracts.
10.85
Substantial performance.
10.86
Stage payments.
10.87
Termination of Instalment Contracts
Terminating the outstanding balance.
10.88
Stated instalments.
10.89
Breaches by seller and buyer.
10.90
Repudiation.
10.91
Misinterpretation of contract.
10.92
Likelihood of future breach.
10.93
Impact of past and present breaches.
10.94
Early breach.
10.95
First instalment.
10.96
Rejecting Particular Instalments
Rejecting instalments and termination.
10.97
The Rights and Remedies of Consumer Buyers
Origin and Scope
General.
10.98
Policy.
10.99
Remedial structure.
10.100
Remedies and conformity: general.
10.101
Other rights and remedies.
10.102
The Consumer Rights Act and other existing remedies.
10.103
Short-Term Rejection
Availability.
10.104
Exercising the right of early rejection.
10.105
The Directive Remedies
Introduction.
10.106
Time and other limits on rights I.
10.107
Time and other limits on rights II.
10.108
Repair or replacement I.
10.109
Repair or replacement II.
10.110
Price reduction and final rejection.
10.111
Price reduction.
10.112
Final rejection.
10.113
Innocent Misrepresentation and Rescission
General.
10.114
Rescission and Rejection
Misrepresentation and term.
10.115
Reason for equitable intervention.
10.116
Controlling rescission.
10.117
Lapse of time.
10.118
Aligning Rescission and Rejection Rights
Reconciling rescission and rejection.
10.119
Criticism.
10.120
Primacy of common law breach.
10.121
Implications of Leaf.
10.122
Rejection and Documentary Sales
General.
10.123
Documentary and Physical Breach
Dual breaches.
10.124
Separate rights of rejection.
10.125
Payment and commercial risk.
10.126
A difficult case.
10.127
Problems.
10.128
Distinguishing Braithwaite.
10.129
Explanation.
10.130
Readiness and willingness.
10.131
Damages and Prospective Physical Breach
Future incapacity.
10.132
Discounting damages.
10.133
Cure and Termination
Right to cure?
10.134
No formal recognition of cure.
10.135
Law reform proposals.
10.136
Tender and Cure
Non-conforming tender.
10.137
Non-conforming delivery.
10.138
Different cases.
10.139
A supporting case?
10.140
Modern treatment.
10.141
Tender and delivery distinguished.
10.142
Other jurisdictions.
10.143
Agreements to Cure
Informal agreement and rejection.
10.144
Limited assistance of Act.
10.145
11 The Remedies of the Seller and the Buyer I
Preliminary Material
Introduction
General.
11.01
The Seller’s Real Remedies
General.
11.02
‘Unpaid Seller’
Definition.
11.03
‘Seller’.
11.04
Insolvency
Definition.
11.05
Effect of buyer insolvency on contracts.
11.06
Disclaimer and modification.
11.07
The Unpaid Seller’s Lien
Lien and right of retention.
11.08
Scope of seller’s lien.
11.09
Unlawful exercise of lien.
11.10
Lien and presumptive performance.
11.11
Credit
Meaning of credit.
11.12
Seller as bailee.
11.13
Loss of Lien
General.
11.14
Delivery to carrier.
11.15
Buyer in possession.
11.16
Lawful possession.
11.17
Waiver.
11.18
Transfer of document of title.
11.19
Part delivery.
11.20
Revival of lien.
11.21
Priority.
11.22
Instalment contracts.
11.23
The Right of Stoppage in Transit
General.
11.24
Passing of property.
11.25
Rarity of stoppage.
11.26
Origin of stoppage right.
11.27
Justification for Right of Stoppage
Seller’s preference.
11.28
Buyer’s defeasible possession.
11.29
Duration of Transit
End of transit.
11.30
Bailee’s attornment to buyer.
11.31
Part-delivery.
11.32
Constructive possession of buyer.
11.33
Buyer’s ship.
11.34
Compound transit.
11.35
Application of rules.
11.36
Freight.
11.37
Unlawful seizure from carrier.
11.38
Rescission of contract.
11.39
Effect of Stoppage
Resumption of possession.
11.40
Sub-sales and transfers of document of title.
11.41
Stop notice.
11.42
Seller’s right to immediate possession.
11.43
The Right of Resale
Anachronistic provisions.
11.44
Development of Resale Right
Explanation.
11.45
Open contract.
11.46
Recovering deficiency.
11.47
Unlawful action by seller.
11.48
Resale and second buyer.
11.49
Effect of resale on prior sale.
11.50
Modern Rationalization
Modern orthodoxy.
11.51
Seller acting as owner.
11.52
Modern approach to contract termination.
11.53
Resolutive condition.
11.54
Examples or list?
11.55
Nemo dat exception.
11.56
Reservation of Title Clauses
Surplus.
11.57
Significance of termination.
11.58
Enforcing the Primary Obligations of the Parties
General.
11.59
The Action for the Price
Availability.
11.60
Merits of debt action.
11.61
Responsibility for unwanted goods.
11.62
Passing of Property
Common counts.
11.63
Eligibility to sue for debt.
11.64
Buyer’s cooperation.
11.65
‘Wrongful’ failure to pay.
11.66
Payment on a ‘Day Certain’
Separation of delivery and payment.
11.67
Application of rule.
11.68
Failure to take up shipping documents.
11.69
The Res Cogitans.
11.70
Reform Proposals
Overseas reform.
11.71
Interest and Foreign Currency
General.
11.72
Statutory recovery of simple interest.
11.73
Late payment of commercial debts.
11.74
Qualifying debts.
11.75
Rate and term of interest.
11.76
Cessation of interest.
11.77
Common law position.
11.78
Damages for currency losses.
11.79
Currency of judgment.
11.80
Instalment Contracts
Moneys paid and payable.
11.81
Accrued instalments.
11.82
Timely payment of the essence.
11.83
Recovery of Money on a Failure of Consideration
Payment prior to termination.
11.84
Conditional sale.
11.85
Remoteness and mitigation.
11.86
Equitable Relief against Forfeiture
Issues.
11.87
Specific performance and penalties.
11.88
Excess recovery.
11.89
Conditional sale and instalments.
11.90
Result.
11.91
Buyer ready and willing.
11.92
Excessive deposit.
11.93
Proprietary interest.
11.94
Consumer cases.
11.95
Specific Relief
General.
11.96
Judicial Discretion
Statutory extension.
11.97
Injunctive relief.
11.98
Ascertained goods.
11.99
Policy.
11.100
Inadequacy of Damages
Unique goods.
11.101
Examples.
11.102
Other cases.
11.103
Mandatory injunctions.
11.104
Complex sale agreements.
11.105
Prohibitory Injunctions
Negative covenants.
11.106
Distinction between positive and negative covenants.
11.107
Declarations.
11.108
12 The Remedies of the Seller and the Buyer II
Preliminary Material
Introduction
General.
12.01
The Secondary Obligation to Pay Damages: Common Issues
Expectation and Reliance Damages
Expectation interest and scope of duty.
12.02
Expectation and reliance distinguished.
12.03
Lost opportunity.
12.04
Compensation.
12.05
Gain-based recovery.
12.06
Performance of prohibited act.
12.07
Account.
12.08
Agreed Damages and Penalty Clauses
Penalties and liquidated damages.
12.09
The rule against penalties.
12.10
The modern test.
12.11
Lord Dunedin’s fourth rule.
12.12
Extent of the penalties rule.
12.13
Rules Limiting Damages Recovery
Factual Causation
Breach occasioning loss.
12.14
Scope of factual causation.
12.15
Loss of chance.
12.16
Recognized Head of Loss
Intangible losses.
12.17
Scope of duty.
12.18
Criticism.
12.19
Remoteness of Damage
Limiting the expectancy.
12.20
Hadley v Baxendale.
12.21
Disclosure.
12.22
Imputed knowledge.
12.23
Types of loss.
12.24
Probability.
12.25
Themes.
12.26
Sanction.
12.27
One rule or two?
12.28
Mitigation of Damages
General.
12.29
Duty to Mitigate
Causation explanation.
12.30
Remoteness explanation.
12.31
Defendant not an insurer.
12.32
Question of fact.
12.33
Extraordinary steps.
12.34
Illusory Mitigation
Further dealings with party in breach.
12.35
Limits of decision.
12.36
Other cases.
12.37
A difficult case.
12.38
Criticism.
12.39
Future events.
12.40
Illusory loss.
12.41
Markets and mitigation.
12.42
Cost of Mitigation
Heavy expenditure.
12.43
Losses Avoided by Mitigation in Fact
Actions arising out of transaction.
12.44
Consequences of breach.
12.45
Claimant’s risk.
12.46
Commodities trading.
12.47
Mitigation and Anticipatory Repudiation
Basis of anticipatory repudiation.
12.48
Election to terminate.
12.49
Mitigation and Liquidated Claims
Debt and liquidated damages.
12.50
Qualifying for debt action.
12.51
Economic waste.
12.52
Impact on sale of goods.
12.53
Mitigation and Specific Performance
Right to seek specific relief.
12.54
Measuring Losses According to the Market
General.
12.55
Prima facie rules.
12.56
Abstract and Concrete Damages Claims
Breach date rule.
12.57
Bailment comparison.
12.58
Notional market transaction.
12.59
Waiver.
12.60
Currency difficulties.
12.61
Contingencies.
12.62
Application to sale of goods.
12.63
Performance date or acceptance?
12.64
Fixed and movable performance dates.
12.65
Effect of repurchase.
12.66
Movable date and damages assessment.
12.67
Market at due delivery date.
12.68
Concrete Assessment
Market price or transaction price?
12.69
US approach.
12.70
Available Market
Meaning of market.
12.71
Sufficient numbers of buyers and sellers.
12.72
Export sales.
12.73
Related markets.
12.74
Late Delivery
Basis of assessment.
12.75
Residual Damages Claims
Section 54.
12.76
Indemnity Claims
Damages and costs.
12.77
Market loss and physical damage.
12.78
Severance of causal link.
12.79
Other Claims
Lost profits.
12.80
Accelerated capital expenses.
12.81
The Secondary Obligation to Pay Damages: Specific Problems
Introduction.
12.82
The Sub-sales Problem
Market as general rule.
12.83
Goods sold ‘to arrive’.
12.84
Charterparty example.
12.85
Application to sale.
12.86
Causal connection.
12.87
Special clause in sub-contract.
12.88
Example.
12.89
Further example.
12.90
Problem case.
12.91
Entry into market impossible.
12.92
Reception of decision.
12.93
Late Delivery
Market rule and absence of loss.
12.94
Delayed performance of sub-contracts.
12.95
Modest damages.
12.96
Link between contract and sub-contracts.
12.97
Speculation.
12.98
Non-conforming Goods
General.
12.99
Applying the market rule.
12.100
Rejecting the market rule.
12.101
Merits of market recovery.
12.102
Criticism.
12.103
Defending sub-contract claims.
12.104
Current position.
12.105
The Lost Volume Problem
Nominal or substantial damages?
12.106
Supply and Demand
Supply exceeding demand.
12.107
Available demand.
12.108
Demand exceeding supply.
12.109
Profit and Supply Price
Mitigation.
12.110
Seller’s supply of goods.
12.111
Deteriorating goods.
12.112
Secondary markets.
12.113
Manufacturing sellers and overhead.
12.114
Remoteness of damage.
12.115
Second-hand Goods
Proving loss of bargain.
12.116
Evidence of loss.
12.117
Breach of Warranty by the Seller
Damages for Diminished Value
Price abatement.
12.118
Market-based recovery.
12.119
Valuing non-conforming goods.
12.120
Value loss or repair cost?
12.121
Date of discovering breach.
12.122
Profit-earning Chattels
Lost profits and lost value.
12.123
Gross profits, net profits, and overhead.
12.124
Gross profits claim and depreciation.
12.125
Other overlapping claims.
12.126
Example.
12.127
Loss-making ventures.
12.128
Complex case.
12.129
Combining lost profits and capital loss claims.
12.130
Submission.
12.131
Conclusion.
12.132
Further Material
Index
Sign up for alerts
Preface
From:
The Sale of Goods (4th Edition)
M G Bridge
Content type:
Book content
Product:
International Commercial Law [ICML]
Published in print:
26 December 2019
ISBN:
9780198832720
Prev
|
Next
[3.239.242.55]
3.239.242.55