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Business contractual relationship:

Assessment 1:

Case one:

“A contract in which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price.”

A contract of sale of goods’ therefore covers both a ‘sale’ and an ‘agreement to sell’. Where the seller can transfer the goods immediately, and is willing and able to do so, then there is a ‘sale’. However, where there is some sort of condition that must be fulfilled or some act has to be carried out before the sale can take place, and then there is merely an ‘agreement to sell’.

The legal effect of a ‘sale’ is that the purchaser obtains a real right over the goods as property in the goods has passed to the purchaser. However, in an ‘agreement to sell’the purchaser only holds personal right against the seller in respect of the contract.

Mary can use SOGA1979 Term to protect herself right and power.

Implied Terms of SOGA 1979 include that section12- SOGA 1979- Implied Terms of Title, section13-Sale by Description, section 14 -‘Satisfactory Quality’ and ‘Reasonable Fitness for Purpose’, and section15- Sale by Sample.

Section 12 -- SOGA 1979- Implied Terms of Title

At the first, the seller must have ‘title’ to the goods; the right to sell the goods. The seller must either own the goods or should have the appropriate authority from the owner to sell the goods.

No third party should have any claim on the goods which would prevent the buyer from obtaining a good title and quite possession of the goods. If there is any charge or encumbrance over the goods by the third party, then all known charges or encumbrance would required to be disclosed prior to the sale.

Section13-Sale by Description

On the other hand, this section implies the term that the goods are to ply with their description. It is clear that if the buyer dose not sees the goods prior to purchase and buy s those relying on a description, then this section would apply.

However, SOGA 1979 also makes clears that a sale by description can also apply to goods exposed for sale and selected by the customer.

Section 14 -‘Satisfactory Quality’ and ‘Reasonable Fitness for Purpose’,

Satisfactory Quality

In English law, there was previously an onus on the purchaser to ensure that goods were of a reasonable quality and suitable for any specific purpose required –the caveat emptor rule.

In Scottish law, there was a principle that a sale of goods was a contract of good faith.

Section 14 only applies where goods are sold in the course of a business so it only covers the situation where the seller is in business. It does not cover private sales although the status of the buyer is irrelevant. Section 14 applies to business buyers as well as to private buyers.

The quality of goods includes their state and conditions and this would therefore means that if goods are advertised as in a sale , or seconds etc, this could have some effect on quality to be expected. There are factors that are listed in section 14 of SOGA 1979 as potentially relevant in appropriate cases :( 1)Fitness for the purpose for which goods of the kinds in question are monly supplied(2)Appearance and finish (3)Freedom form minor defect (4) Safety (5) Durability.

Reasonable Fitness for Purpose

Under section 14 of SOGA 1979, there is an implied term that the goods are reasonable fit for the purpose, whether or not that is purpose for which such goods are monly supplied.

In the case, Mary’s tumble dryer has quality problems and line installation defects caused by fire. This does not conform to the provisions of product safety. Because this product’ defects cause serious consequences. Of course, the hairdryer to use only two months on the problems that the hairdryer is not durability. Hence，Mary could use Section 14 -‘Satisfactory Quality’ and ‘Reasonable Fitness for Purpose’ because that Mary’s situation conforms to the content that the law stipulate.

Section15- Sale by Sample

In this section there are two implied terms:

That the bulk will correspond with the sample in quality: and that the goods will be free from any defect, marking them unsatisfactory, which would not be apparent on reasonable examination of the sample.

Case two:

Charlie can't use the SOGA1979 bill rights, because Charlie did not directly buy tumble dryer.

Charlie can use the Law of Delict to protect his own power，the Law of Delict, like the law of contract , is a part of the law of obligations. A delict has been defined as: “a civil wrong mitted by a person in deliberate or negligent breach of a legal duty, from which liab ility to make reparation for any consequential loss or injury may arise”

General principles of Delictual liability

As noted above there must be three elements present:

A loss or injury, such as physical or personal injury, the loss of earnings, nervous shock, distress, damage to a reputation.

Caused by a legal wrong (wrong conduct)

Caused by culpa(fault, intentionally or negligently done) on the part of the wrongdoer.

Charlie lung inhalation of smoke to his shock in this belongs to the serious loss. According to the case, Charlie is not negligence resulting in the fire is mainly because short circuit caused the fire.

Charlie can also use the Consumer Protection Act 1987to protect his rights and interests.

It contains importance extension of the privity of contract rights for consumers if goods are unsafe, so that rights also exist directly against producers and those who hold themselves out as producers.

The consumer protection act 1987 deal with three main aspects of consumer protection: product liability, customer safety and misleading pricing.

Product liability

Part one of the customer protection act 1987 transport the product liability directive into the UK law.

part 1 of the establishes is a principle of strict liability relating to defective products which cause damages to other property and injure to people who were injured as a result of using the product or who came into close contract with the product.

Strict liability means that the plaintiff does not have to prove fault on the part of the defendant. The product liability section made producers liable for any damage done by defective products. The Act goes even further in ensuring that customers are protected from damage or injure caused by faulty goods.