Sales under the Sale of Goods Act 1979, when a business buys goods from another business, it means that they have entered into a contract with that other business, as the supplier of the goods. Under the Sale of Goods Act there are some rules that form the contract and, which the suppliers must abide by. The act states that the goods sold must be as described, of satisfactory quality and fit for the purpose. By fit for the purpose this means that the product must be suitable for everyday use and for the purpose that the buyer is made aware of. For example, if iD the mobile phone network provider asked for accessories for a specific phone, but the suppliers send the wrong accessories then, this will be a breach of contract. In circumstances where there was a breach of contract, there are many remedies available for a business.
Section 49 of the act provides multiple actions which the Seller can take if the buyer does not make the payments for the goods. There are two parts to the section; part 1 looks into if the goods have been passed on to the buyer, but the buyer failed to make the payment due, the second part looks into if the goods have not been delivered and the price is payable. An example of this is the case of Stein 1916, in this case the seller agreed to sell some sheepskins to the buyer. The terms of the contract were that the payment will be made on delivery, the sheepskins arrived but the buyer refused to accept the documents and refused to make the payments. Hence, in this case the buyer was guilty of breach of contract.
Another example, in terms of the mobile phone contract will be if the buyer got a monthly contract, but has refused to make the monthly payments for the tariff. This will mean that the buyer is e...
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... the goods have been delivered, there are several examples where this may not be practically applied. For example, in the Borden case, despite the existence of a retention of title clause, it was impossible for the Seller to rely on this as the £300,000 worth of timber which was not paid for when the purchaser became insolvent, due to the fact that the timber had already been converted into chipboard and therefore could not be identified and the Seller lost their title.
There are multiple potential ways in which a Seller can deal with breach of contract by the Buyer, whether these are linked to the property itself or allow the Seller to claim damages for losses. In any event, care needs to be taken by the Seller, at all stages, to ensure that their interests are protected and that they do not act in a way that could reduce their position, unwittingly.
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