To browse Academia. Skip to main content. You're using an out-of-date version of Internet Explorer. Log In Sign Up. Nanyumba Nicholas. Sale of Goods act Cap Principles of common law and equity. Case law.
Historical Background of the law of sale of goods in Uganda. The Act is a codification of a long era common law judicial decisions from England. The Sale of Goods Act Cap 82 which now applies in Uganda sets out the legal framework of sale of goods between a buyer and a seller. Whereas the English Act from which the Ugandan Act derived its numerous provisions has been amended with the latest amendment being the one inthe Ugandan Act has remained static. This has preempted various stakeholders to propose an amendment visit web page the Act by proposing The Sale of Goods and Supply of Services Doinb, currently before parliament.
The law of sale of goods concerns consensual transactions voing on an agreement to buy and sell goods. This is what we call a contract of sale of goods. The general principles that relate to contracts e. The Act on the other hand lays down principles that are intended to protect a party to such a contract as well a rules of general application where the parties fail to doiing for contingencies which may interrupt the smooth performance of a contract of sale.
Contract of Sale of Goods. Where the property in the goods is transferred from the seller to the buyer, kf contract constitutes a sale.
See more, where no transfer of property takes place and the same is to take place at a future date or is subject to some further condition then this is called an agreement to sell under S. Characteristics of a Contract of sale. The definition given in S. The essential characteristics being: i The existence of two distinct parties hoods the contract that is a buyer and a seller.
The goods. The mere transfer of possession of the goods will not suffice as the seller must either transfer or agree to transfer the property in the goods foing the buyer so that a contract of sale of goods is fully constituted. Goods are defined under S. Note: chattels, emblements and things in action. Find the definition of each of these. Money in this context would include cash and cheques but would not include credit or some other form of consideration. However, consider ss.
The agreement liable gods becoming a proper sale upon lapse of time or fulfillment of the condition subject to which the property in the goods was or is sale of goods doing 2017 be transferred S. The original buyer sale of goods doing 2017 also sue salf seller for breach of contract or in tort for conversion. However, the right to recover sale of goods doing 2017 goods from the third person is lost if the subsequent buyer had bought the goods sale of goods doing 2017 [in good faith] and without notice of the previous sale.
See S. This is so because they have some resemblance. Sale and Exchange As already noted above, the consideration for a contract of sale of goods is money. In such an event, the coin does not possess the usual sale of goods doing 2017 qualities of money, and if the sale is by a thief he cannot pass a good title.
Money is an universal medium, or common standard, by comparison with which the value of sale of goods doing 2017 merchandise may be ascertained; or it is a sign, which represents sale of goods doing 2017 respective values of all commodities. Metals are well calculated for this The position becomes more complicated where goods on the one hand are exchanged for goods plus money sale of goods doing 2017 the other, as is sqle where people exchange and older product say a phone for a newer one.
This will goodss the question of fo this is a sale or an exchange. In Aldridge v. In such a case as above, the English sale of goods doing 2017 have held that the determining factor of whether such a contract is a sale or exchange is to consider whether the money constitutes the substantial part of the contract goodw and also the intention of the parties so long as this intention does not include provisions manifestly inconsistent with the intended nature of the transaction.
It would seem that a transaction relating to exchange of an old car for a new one would amount to a sale even though no money actually passes click to see more, as is usual, the parties fix a notional price which boods set off against the price of the new car.
However look at the case of Flynn v. Sale and gift. Ordinarily, no problems go here in distinguishing a sale from a gift. A gift is a transfer of property without any consideration and as such it is not binding while it remains executory unless made under a deed.
However, the situation is different where the provision of the gif is dependent upon the purchaser entering a contract for the purchase of something else, as is often the case in marketing campaigns. The issue for the court was whether the coins attracted purchase tax now VAT under a contract of sale. It was held by the House of Lords that although the transaction was not a gift, inasmuch as the garage was contractually bound to supply the coin to anyone buying the four gallons of petrol, it was not a sale of goods either.
Lord Simon was of the opinion that this constituted a collateral contract in which the consideration for the free coin was the purchase of the petrol, a view shared by Lord Wilberforce.
However, this view was not shared by sale of goods doing 2017 of the Law Lords. Sale and bailment. A bailment is contract is a transaction under which goods are delivered by one party the bailor to another the bailee on such terms which would require the bailee to hold the goods and ultimately redeliver them to the bailor or in accordance with his or her directions.
In such a contract, the property in the goods is not intended and will not salle on delivery to the bailee, though the parties may intend that in the due course of their dealings, the property should pass. In a contract that indicates that upon delivery, the property in the goods should pass there and then, then that is a sale and not a bailment. In South Australian Insurance Co v Randell PC A farmer left corn with a miller on terms that he buy iphone discount legs without claim at any time the return of the same quantity of corn or its goovs value.
The corn was mixed with other corn deposited with the miller. The mill and its contents were destroyed in a fire. They claimed that it belonged to the farmer and so the mill held it under a contract of bailment.
Therefore there was a ggoods of property to the mill owner and this was not a contract of bailment. The insurance company were liable to pay out in respect of that corn. The wheat was delivered in unidentified bags which were identical to those in 217 other farmers delivered wheat to the company.
The terms of the transaction required the company to buy and pay for the wheat on request by the farmer or failing such request, on a specified date, to return read article bags.
Sale and Hire purchase. Ding of hire-purchase are similar to goids contracts in a number of ways. This is so because sale of goods doing 2017 most cases or rather in all case of hire-purchase, the ultimate sale of goods is the actual object of the transaction. Under a hire-purchase transaction, the goods are delivered to the hire purchaser for his or her use at the time of the agreement but the owner of the goods agrees sale of goods doing 2017 transfer the property in the goods to the hire purchaser only when a oof sale of goods doing 2017 number of installments of the price are paid by sale of goods doing 2017 hirer.
This means that that no agreement to buy exists at the time the hire purchase agreement is made but rather there is a bailment of the doin coupled with an option to purchase them asle option may or may not sake sale of goods doing 2017. Where a person lets o a commodity to another, where the hirer this web page to pay a specified amount of money in a specified number of installments, possession of the goods passes to the hirer who reains possession but does not become a buyer or owner of the commodity until he or she exercises ddoing option sale of goods doing 2017 purchase.
In Christine Bitarabeho vs. The vehicle was sale of goods doing 2017 in the names of the Plaintiff. The wife of the plaintiff, Dr. Zalah Kakonge, endorsed the log book has a co-owner in order to protect her interest in the vehicle. The defendant's husband Paul Bitarabeho showed interest in the vehicle and agreed to buy it only if source would persuade his wife, the defendant to sell the second hand pajero.
Goodz wife now defendant did not comply and the sale was not executed. When Paulo Bitarabeho failed to raise the purchase price he entered into a rental agreement for one year at a cost of 50, for which he paid an advance of 11 million. Sadly Mr. Paulo Bitarabeho died while the car was still in his possession. The widow claimed that the late husband had actually purchased the vehicle. It was held by the Eale of Appeal that the evidence on record clearly stationery sale subject paper that Paulo Bitarabeho was interested in the purchase of the vehicle sxle he could persuade his wife, the defendant, to sell their old Pajero.
That would have enabled him to raise the purchase price. That did not materialise because the defendant refused to consent. As he had been using the vehicle for some time, he agreed to hire it via a hire-purchase contract and that after the deposit had been exhausted, the appellant was required to return the car and the claim for the car by the respondent was a valid one.
The issue arose as to whether that was a contract of sale or one of hire. Both parties were committed to doiing sale from the outset, so od was a contract of sale and the Sale of Sale of goods doing 2017 Act applied. The payment of the entire amount due under the installments as agreed under the hire- gods agreement does not necessarily pass the property in the goodss unless all the terms of the agreement have been complied with.
In Helby sale of goods doing 2017 Mathews  ACBrewster agreed to hire a piano from Helby on terms that if Brewster paid 36 monthly instalments the piano eale become his property.
Brewster could, however, return the piano at any time during the hire period. The only obligation which is laid upon him is to pay the stipulated monthly hire godos long as he chooses to keep the piano. In other words, he is at liberty to determine the contract in the usual way, by returning the hired thing to its owner, sale of goods doing 2017.
He is under no obligation to purchase until the hirer actually exercises the option given to him. Sale and loan on security. Many a time, parties enter into, or go through the motions of goodds into a contract to sell goods with the intention of using the goods as security for a loan gooods money. This could be by way doingg charge or mortgage on the particular property.
This transaction is goode we call a gopds on security. While analyzing the nature of this transaction, the courts have always insisted that the substance of the transaction and no buy coupon fall 2017 its form must be examined. Look at Kingsley v.