200 Chapter 7The Sale of Goods Act 1979
Figure 7.5 gives an overview of the SGA rules about delivery.The buyer’s duty to pay the price
Section 8 sets out the way in which the price of the goods may be fixed.
(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) When the price is not determined as mentioned in subsection (1) above the buyer must
pay a reasonable price.
(3) What is a reasonable price is a question of fact dependent on the circumstances of each
particular case.
If there appears to be a contract of sale of goods but the price cannot be found, then the con-
tract will be void for lack of agreement. However, s. 8 shows that even where the parties do
not expressly agree the price, or agree how the price should be fixed, the price usually can
be found. First, a course of dealing between the parties might fix the price, under s. 8(1).Example
Bob, a plumber, frequently buys a particular type of copper piping from Seema, a plumber’s
merchant. The first few times Bob makes such purchases the price is agreed at £1 a foot.
If Bob rings up and orders another 100 feet of this type of piping, without mentioning the
price, then the course of dealing which has taken place between the parties will fix the price
at £100. So if Seema has changed the price, this change must be communicated to Bob
before it will become effective.Where the price is not fixed by s. 8(1), s. 8(2) provides that a reasonable price must be paid.
So, to extend the example just considered, even if Seema and Bob had never previously
dealt with each other, the price would still be fixed. Section 8(2) would require that Bob pay
a reasonable price. A court could calculate this price by considering all the circumstances
(s. 8(3)). The court would therefore hear evidence as to what a plumber’s merchant such as
Seema would usually charge a plumber for 100 feet of this type of pipe.The buyer’s duties to accept the goods and take delivery of them
The buyer’s duty to accept the goods requires the buyer not to reject the goods without
a justifiable reason for doing so. Such a rejection of the goods could be made either before
or after the goods had been delivered. If the buyer does wrongfully reject the goods the
seller can sue for damages for non-acceptance. The buyer also has a duty to take physical
delivery of the goods if requested to do so by the seller.Remedies of the buyer and seller
The buyer’s remedies
The Sale of Goods Act 1979 gives the buyer the right to sue for damages if the seller fails
to deliver the goods or breaches a term of the contract. The term might be a condition or a
warranty. If the seller repudiates the contract, or breaches a condition, the buyer will be able