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Sale of Goods & Services - Consumer protection

6 important questions on Sale of Goods & Services - Consumer protection

What 4 types of contracts are governed by special legal rules?

1. Contracts for the sale of goods
2. Contracts for the sale of services
3. Contracts for the hire of goods
4. Contracts for consumer credit

What elements must be present for a contract to be classified as a contract for the sale of goods?

1. A contract
2. A sale of goods
3. A transfer of property (ownership) in the goods
4. Money consideration (price) gift or exchange doesn't count

What 2 categories of goods are there?

1. Specific/ ascertained goods (goods identified and agreed upon at the time of the contract)
2. Unascertained goods (generic goods which are not unique or identifiable at the time of a contract) e.g. A bag of coal taken from a batch of coal

What is the Romalpa/retention of title clause?

States that the seller retains ownership of the goods until they are paid in full, but the buyer is allowed to take possession of the goods. Seller can therefore take back possession, while risk of damage did pass to the buyer

What is the default rule for the passing of specific goods?

Ownership may only pass when goods are subject to the approval of the buyer within a reasonable time or when the goods are in deliverable state

What is the default rule for the passing of unascertained goods?

Ownership passes when the goods are ascertained (have been identified and match the description in the contract) and have been irrevocably removed from the bulk

The question on the page originate from the summary of the following study material:

Foundation of Business Law

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