Sales of Goods

Sale of Goods Act 1893
• The law in respect of sale of Goods in Nigeria is

the Sale of Goods Act 1893.
• A Contract of sale goods is defined in section 1
of the Act as a Contract whereby the seller
transfers or agrees to transfer the property in
goods to the buyer for a monetary
consideration called the “price.”
• Note that a contract of sale of goods include a
sale and an agreement to sell.
WHAT ARE GOODS?
• The term “Goods” include all chattels,
personal other than choses in action and
money. Goods does not include land or
anything attached to it e.g. tress.
• Classification of goods
• Existing goods: These are goods owned and
possessed by the seller at the time of the
contract e.g a bag of rice, Laptop.
FUTURE GOODS
• Future Goods: These are goods to be
manufactured or acquired by the seller after
the contract has been concluded.
• Unascertained Goods: These are goods sold
by description. Goods not identified and
agreed upon at the time of the contract. e.g
50 bags of beans.
• Specific or ascertained goods: The particular
goods are identified and agreed upon at the time
of the contract e.g Black Rav4 Jeep, 2014 model.
• What is Price ?
• The consideration for the sale must be money
otherwise the contract is that of barter and not a
contract of sale of goods to have the
consideration partly in money and partly in good
IMPLIED TERMS IN A CONTRACT OF SALE OF
GOODS
• At common law, no conditional term, for
example, as to fitness or quality of goods are
implied into the contract of sale of goods. The
rule is “caveat Emptor.” which means “buyer
beware” to ensure that there is no defects in
the goods which he intends to buy.
• The implied condition in contract of sale of
goods are:
 Title: There is an implied condition on the part
of the seller that in case of a sale, he has a
right to sell the goods and in the case of an
agreement to sell, he will have a right to sell at
the time property is to pass. AKOSILE
.V.OGIDAN
• Implied Warranty that the goods sold are free
from any charge or encumbrances not
disclosed or known to the buyer before the
contract is made and that the buyer would
enjoy quite possession.
• Sample: Where there is a sale by sample
there is an implied condition that the bulk
would correspond with the sample in quality.
• Description: Where there is a sale of goods by
description there is an implied condition that
the goods supplied would correspond with the
description.
• Merchantable Quality: Where a seller sells
goods in the course of business, there is an
implied condition that the goods are
merchantable quality.
• Fitness of Purposes: Where the buyer
expressly made known to the seller the
particular purpose for which the goods are
required, so as to indicate that he relies on the
seller’s skill or judgment there is an implied
condition that the goods shall fit for the
purpose.
TRANSFER OF PROPERTY
• Specific goods: As a general rule, property in
the goods passes from the seller to the buyer
at such time as the parties expressly or
impliedly stipulate in the contract of sale.
• If no time is stipulated the following guide is
provided:
• In an unconditional contract for sale of specific
goods that are in a deliverable state, the
property is transferred to the buyer when the
contract is made even if payment or delivery is
postponed by the contract.
• In a contract for sale of goods to which the
seller has to do something to put the goods in
a deliverable state the ownership of such
goods does not pass until such a thing is done
and the buyer has noticed.
SALES OF GOODS BY A PERSON NOT THE
OWNER
• As a general rule, the sale of goods by a
person who is not the owner or who does not
have the authority of the owner gives no title
to the buyer. “ This rule is reflected in the
maxim “ Nemo Dat Quod Non Habet” which
means “You cannot give what does not belong
to you”.
• The buyer will be obliged to return such good
to the true owner. The rule is that a buyer
cannot acquire ownership from someone who
has no ownership or authority to sell.
EXCEPTIONS TO THE GENERAL RULE OF
“Nemo Dat Quod Non Habet”
• Estoppel: Where the true owner stands by
and allows the innocent buyer to pay over
money to a third party who professes to have
the right to sell goods, the owner will be
estopped from denying the 3rd party right to
sell.
• Sale in a Market Overt: If the goods are sold
in a market overt by a person who is not the
owner) according to the use of the market, the
buyer obtains a goods title to the goods
provided he buys it in good faith and without
notice of any defect in title on the part of the
seller.
• Sale by seller in Possession: If a person who
has sold the goods continues in possession of
the goods or of the documents of title to the
goods any sale and delivery by him to a new
buyer who takes the goods in good faith
without notice of the previous sale will give a
good title to the buyer.
• Sale by Buyer in Possession: if a person who
has bought or agrees to buy good obtains the
possession of the goods or of the document of
title to them any sale by him to a buyer who
takes in good faith and without notice of any
lien against the goods will give a good title to
the buyer.
SALE BY A MERCANTILE AGENT:
• Sale by a Mercantile Agent: Any sale by a
mercantile agent to a buyer in good faith gives
a good title to the buyer.
Sale by Court Order: A sale pursuant to a
Court order would give a good title to the
buyer.
REMEDIES AVAILABLE TO THE BUYERS UNDER
SALES OF GOOD ACT
• Sue for Damages for Non- Delivery: The buyer may sue for
monetary compensation for non-delivery.
• Specific Performance: The buyer may ask the Court to
compel the seller to deliver the goods as originally agreed
by the parties.
• Action for Recovery of Price: If purchase price has been
paid, the buyer can sue for the return of the money.
• Suing for Damages for Breach of Warranty: Where the
breach is warranty which does not entitle the buyer to
repudiate the contract, the buyer may sue for damages for
breach of warranty.

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Sale of Goods Act 1893

• The law in respect of sale of Goods in Nigeria is

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