CHEQUE AS A MEANS OF PAYMENT

What is a Cheque?

cheque
A cheque

A cheque has been defined by S.73 Bill of Exchange Act as

 “…a bill of exchange drawn on a banker payable on demand…”

In the case of Ademoye vs State (2014), the court, in defining cheque, adopted the definition provided in the Black’s Law Dictionary 9th Edition which defines a cheque as a Continue reading “CHEQUE AS A MEANS OF PAYMENT”

RIGHTS OF AN UNPAID SELLER

Who Is An Unpaid Seller?

An unpaid seller has been defined by S.38 of the Sales of Goods Act. It provides:

38.(i) The seller of goods is deemed to an “unpaid seller” within the meaning of this Act—

(a) When the whole of the price has not been paid or tendered;

(b) When a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has not been Continue reading “RIGHTS OF AN UNPAID SELLER”

RULES OF DELIVERY IN A CONTRACT OF SALE

DUTY OF BUYERS AND SELLERS

By the provision of S.27 of the SOGA, it is the duty of the seller to deliver the goods and it is the duty of the buyer to accept and pay the price for the goods in accordance with the terms of their contract.

By the provision of S.28 SOGA, except it is otherwise provided in the contract, delivery of goods and payment for same are concurrent conditions. That means the seller must be willing to Continue reading “RULES OF DELIVERY IN A CONTRACT OF SALE”

TRANSFER OF RISK IN A CONTRACT OF SALE

What is Transfer of Risk?

Whoever is the owner of goods would bear the risk of damages that happen to the goods while it is still his property. This is encapsulated in the maxim “res periit domino suo” which literally means “the destruction of a thing is a loss to its owner”.

By the provisions of S.20 of the SOGA, risk in the goods lies with the seller but Continue reading “TRANSFER OF RISK IN A CONTRACT OF SALE”

TRANSFER OF PROPERTY IN SALES OF GOODS

What is Transfer of Property

This is the moment at which it would be believed by the court that the property in the goods has passed from buyer to seller. The application of the rule is different in the instance of ascertained goods and unascertained goods.

Transfer of Specific or Ascertained Goods

In the case of ascertained goods, it is provided by S.17 (1) that Continue reading “TRANSFER OF PROPERTY IN SALES OF GOODS”

SALES BY DESCRIPTION, FITNESS FOR PURPOSE AND SALE BY SAMPLE

  Sale of Goods by Description

By the provisions of S.13 of the SOGA, where there is a sale of goods by description, there is an implied condition that the goods sold would fit the description that has been provided by the seller.

In the case of Varley vs Whipp 1900 1 QB 513, the plaintiff sold a reaping machine to the defendant. The machine was described to be about a year old and used to cut about 50 to 60 acres. On getting the machine, it was discovered Continue reading “SALES BY DESCRIPTION, FITNESS FOR PURPOSE AND SALE BY SAMPLE”

OWNERSHIP AND PASSAGE OF PROPERTY

The Rule of Ownership and Passage of Property

This is encapsulated in the Latin maxim: Nemo dat quod non habet. This translates to mean “you can’t give what you don’t have”. Thus, S.12 SOGA provides that before ownership can be transferred, the following have to be met:

  1. If it is a sale, a condition that the seller has the right to sell and if it is an agreement to sell, the seller would have the right to sell at the time the property in the goods will pass 12 (1).
  2. There must be a warranty of quiet enjoyment and non-interference; 12 (2).
  3. A warranty that the goods are free from third party charges and encumbrances; 12 (3).

In the case of Akoshile vs. Ogidan 1950 19 NLR 87, the defendant Continue reading “OWNERSHIP AND PASSAGE OF PROPERTY”

GENERAL OVERVIEW OF THE SALES OF GOODS

Definition of Sales of Goods

By the provision of S.1(1) of the Sales of Goods Act, a contract of sale is one whereby a seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price. A contract of sale could be absolute or conditional; S.1 (2) SOGA.

A contract of sale can be an outright sale or Continue reading “GENERAL OVERVIEW OF THE SALES OF GOODS”

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