Changes to legislation: There are currently no known outstanding effects for the Sale of Goods Act 1979. (See end of Document for details) Sale of Goods Act 1979 1979 CHAPTER 54 An Act to consolidate the law relating to the sale of goods.6th December 1979 Annotations: Commencement Information I1Act wholly in force at 1.1.1980, see s. 64(2) Annotations: Commencement Information I1Act wholly in force at 1.1.1980, see s. 64(2) PART I CONTRACTS TO WHICH ACT APPLIES 1Contracts to which Act applies. (1) This Act applies to contracts of sale of goods made on or after (but not to those made before) 1 January 1894. (2) In relation to contracts made on certain dates, this Act applies subject to the modification of certain of its sections as mentioned in Schedule 1 below. (3) Any such modification is indicated in the section concerned by a reference to Schedule 1 below. (4) Accordingly, where a section does not contain such a reference, this Act applies in relation to the contract concerned without such modification of the section. 2 Sale of Goods Act 1979 (c. 54) Part II Formation of the Contract Document Generated: 2011-01-28 Changes to legislation: There are currently no known outstanding effects for the Sale of Goods Act 1979. (See end of Document for details) PART II FORMATION OF THE CONTRACT Contract of sale 2Contract of sale. (1) A contract of sale of goods is a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price. (2) There may be a contract of sale between one part owner and another. (3) A contract of sale may be absolute or conditional. (4) Where under a contract of sale the property in the goods is transferred from the seller to the buyer the contract is called a sale. (5) Where under a contract of sale the transfer of the property in the goods is to take place at a future time or subject to some condition later to be fulfilled the contract is called an agreement to sell. (6) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. 3Capacity to buy and sell. (1) Capacity to buy and sell is regulated by the general law concerning capacity to contract and to transfer and acquire property. (2) Where necessaries are sold and delivered F1to a minor or to a person who by reason of F1mental incapacity or drunkenness is incompetent to contract, he must pay a reasonable price for them. (3) In subsection (2) above “necessaries” means goods suitable to the condition in life of the minor or other person concerned and to his actual requirements at the time of the sale and delivery. Annotations: Amendments (Textual) F1Words in s. 3(2)(3) repealed (S.) (25.9.1991) by Age of Legal Capacity (Scotland) Act 1991 (c. 50, SIF 49:8), ss. 10, 11(2), Sch. 2 F1Words in s. 3(2) ceased to have effect (E.W.) (1.10.2007) by Mental Capacity Act 2005 (c. 9), ss. 67(1), 68, Sch. 6 para. 24 (with ss. 27-29, 62); S.I. 2007/1897, art. 2(1) Formalities of contract 4How contract of sale is made. (1) Subject to this and any other Act, a contract of sale may be made in writing (either with or without seal), or by word of mouth, or partly in writing and partly by word of mouth, or may be implied from the conduct of the parties. Sale of Goods Act 1979 (c. 54) Part II Formation of the Contract Document Generated: 2011-01-28 3 Changes to legislation: There are currently no known outstanding effects for the Sale of Goods Act 1979. (See end of Document for details) (2) Nothing in this section affects the law relating to corporations. Subject matter of contract 5Existing or future goods. (1) The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or goods to be manufactured or acquired by him after the making of the contract of sale, in this Act called future goods. (2) There may be a contract for the sale of goods the acquisition of which by the seller depends on a contingency which may or may not happen. (3) Where by a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods. 6Goods which have perished. Where there is a contract for the sale of specific goods, and the goods without the knowledge of the seller have perished at the time when the contract is made, the contract is void. 7Goods perishing before sale but after agreement to sell. Where there is an agreement to sell specific goods and subsequently the goods, without any fault on the part of the seller or buyer, perish before the risk passes to the buyer, the agreement is avoided. The price 8Ascertainment of price. (1) The price in a contract of sale may be fixed by the contract, or may be left to be fixed in a manner agreed by the contract, or may be determined by the course of dealing between the parties. (2) Where the price is not determined as mentioned in sub-sec