Soga

In: Business and Management

Submitted By ck90
Words 1665
Pages 7
1. For Sale of Goods Act, 1957 to apply, it must be a goods. Under Section 2 Sale of Goods Act, 1957, goods is defined as every kind of movable property other than auctionable claims and money, and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. Land is excluded from Sale of Goods Act, 1957.

For Sale of Goods Act, 1957 to apply, it must be a contract of sale for a price. Contract of Sale is defined in Section 4(1) Sale of goods Act, 1957 as a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.

(a) When Ahmad agrees to exchange his pen for Thomas’s watch, is there a goods? Here, Section 2 Sale of Goods Act, 1957 is satisfied because both pen and watch are movable properties. Is there any price? Here, there is no price because it is a barter agreement. Therefore, Section 4(1) Sale of goods Act, 1957 is not satisfied. Hence, Sale of Goods Act, 1957 cannot apply in this transaction.

(b) When Jenny agrees to sell her house to George for Rm200000, is there a goods?
Here, Section 2 Sale of Goods Act, 1957 is not satisfied because house is not a movable property. Therefore, Sale of Goods Act, 1957 cannot apply in this transaction.
(c) When Frank agrees to buy shares in ABC Sdn Bhd from Sam for RM10000, is there a goods? Here, Section 2 Sale of Goods Act, 1957 is satisfied because shares is movable property. Is there a price? Here, there is a price of RM 10000, therefore Section 4(1) Sale of Goods Act, 1957 is satisfied. Hence, Sale of Goods Act, 1957 can apply in this transaction.

(d) When Tan wants to buy a TV set from Fella Design for RM2000 to be paid…...

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