Tutorial Questions Topic 3

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Tutorial Topic 3 (Sale of Goods)

Structure Questions

1. Explain about the delivery and acceptance of goods under the Sale of Goods Act 1957
(10
marks)

2. The principle ‘Nemo Dat Quod Non Habet’ means no one can transfer a better title than
he has himself. However, in certain situations, the buyer will get a good title to the goods
even though the seller was not the owner or does not have authority to sell. Explain FIVE
(5) exceptions to the general rule. Support your answer with provision in the Sale of
Goods Act 1957 and decided cases (if any).
(10 marks)

Essay Questions

1. Nisha operates a small business making pillows and soft toys stuffed with 100% organic
cotton. Besides being environmentally friendly, her products are also popular among
customers who are allergic to the common polyster stuffing found in most pillows and
soft toys. She normally orders her cotton stuffing from a company, Fairtrade Sdn Bhd
under the brand Tulen which carries a 100% organic certification from the producer.

In relation to implied terms under SOGA, advise Nisha of the rights and liabilities that
arises from the following scenarios:-

a. On one occasion Fairtrade delivered to her 50 kgs of cotton stuffing under the
brand Pilofix which are known to be organic but does not carry the 100%
certification. Nisha refused to accept the stuffing and wanted to cancel the
contract, but Fairtrade insisted that Nisha pay for the delivery saying that they
have fulfilled their contract
b. A customer bought a pillow from Nisha. 2 days later the customer complained
that the pillow was causing her allergies and wishes to sue Nisha for breach of
implied term that goods bought must be fit for buyer’s purpose. Upon
investigation, it was revealed that the customer was suffering from a rare
allergy to the dye used on the pillowcase. This fact was not disclosed to Nisha
when the customer was buying the pillow.
c. Siew Mei, an importer of organic cotton pillow from Singapore has engage
Nisha to buy 1000 pillows from her. She has seen the pillow sample during
her visit to Nisha’s shop and is satisfied with the quality of the sample. When
she received the 1000 pillows, she found out that there is a small difference
between the sample and the order that she received (the colour of the
pillowcase sample is white but the product delivered to her is cream). She asks
whether she can claim damages due to the difference in quality of the goods
(15
marks)

1. Read the following situation and determine whether the buyer can obtain a good title of
ownership for the goods: -

i. Norman received a car from his father under a voidable contract of undue
influence (his father was living with him and is dependent on him). Norman sold
the car to Nora under a sale and purchase agreement. Norman’s siblings came to
see Nora, demanding her to return the car as they claimed that the contract
between Norman and their father is a voidable contract. Nora has no knowledge at
all regarding this issue when she bought the car
(5 marks)

ii. Tipu Sdn Bhd had sold a bookshelf to Ms Rainie and Ms Rainie had paid for the
price of the bookshelf. Without the knowledge of Ms Rainie, Tipu Sdn Bhd sold
the same bookshelf to Mr Richard who had no knowledge of the transaction
between Tipu Sdn Bhd and Ms Rainie. They deliver the bookshelf to Mr Richard,
to the dismay of Ms Rainie. Advise Ms Rainie on the remedy available under the
law for her.
(5
marks)

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