attempt to remedy the imbalance of power in consumer contracts. Some of
the protection given by legislation only applies to consumer contracts.
The basis of a consumer contract is where an individual buys from a
person in business.This is important to establish, as there is a wealth of protection now in force
for the consumer. If a person is not buying as a consumer, then the principle
of caveat emptor applies, which means that the buyer takes responsibility
for the state of the goods or services purchased (see below, Sale and Supply
of Goods Act 1994, section 14). Of course an individual could be in
business as a seller of goods, but at some times, such as at the weekend, be
a consumer in shopping for the family or pursuing a hobby.
The Sale of Goods Act 1979 as amended by the
Sale and Supply of Goods Act 1994
The Sale of Goods Act 1979 was a major step forward for the consumer,
updating a previous Act passed in 1893. It applies to the sale of goods,
defined in section 2(1) as 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’. So some money, at least, must be given, and an exchange
of goods for other goods is excluded from this law. Remember that most of
the provisions in the Act apply to a consumer (see above).
The passing of property
The moment at which ownership of property transfers to the other party is
very important in determining whether certain liability arises. The point at
which property passes can be determined by the parties, providing the
goods have been ‘ascertained’, or identified. If the point at which property
passes has not been specified, then certain rules apply from sections 16 to
18 of the Act.
- Goods deliverable – property passes on contract.
- Specific goods not yet deliverable – property passes when the seller has
them ready and tells the buyer. - Goods on approval – property passes on acceptance by buyer or lapse of
time. - Unascertained or future goods – property passes when goods are
‘unconditionally appropriated’ to the contract.
Consumer protection 237