Nature, Sources and Meaning of Sale of Goods
CONTENTS
1.0 Introduction
2.0 Objectives
- Main Content
- Meaning of Commercial Law
- Nature of Sale of Goods
- Sources of Nigerian Sale of Goods Law
- Meaning of Sale of Goods
4.0 Conclusion
5.0 Summary
6.0 Tutor Marked Assignment
7.0 Reference/Further Readings
INTRODUCTION
Certain commercial transactions are not new to our indigenous society. Such transactions like sale of goods, pledge, hire purchase, insurance, money lending, arbitration etc were in existence before the introduction of English legal system. These indigenous systems have given way to modern system tailored in line with the English common law and statutes.
OBJECTIVES.
At the end of this unit the learners are expected to be able to understand the meaning of commercial law, nature of sales of goods, the sources of Nigerian law regulating sale of goods in Nigeria and what sale of goods contract is.
MAIN CONTENT
WHAT IS COMMERCIAL LAW?
Commercial law is a dynamic and exciting area of law. It has been flexible in order to keep pace with the rapid changes in business and with the globalization of markets. At the same time, it has been certain in order to assist in the growth and development required in commerce.
Commercial law is a subject that is difficult to define. In fact, there has never been a universally acceptable definition for this aspect of law. One thing is however clear. This is that it encompasses the laws that apply to business which include most importantly the law of contract and other aspects of law like company law, agency, sale of goods, banking, intellectual property, competition law, taxation law, insurance and hire purchase. This course, Law of Commercial Transaction does not cover all of these subjects. Its main objective is to look at certain areas in order to acquire an understanding of the themes, principles and practices of commercial law. The areas covered in the course are sale of goods, agency and hire purchase. The first semester shall focus mainly on sale of goods laws while second semester deals with agency and hire purchase laws.
- Nature of Sale of Goods
The study of sale of goods is a study of a specialised area of general contract. It is a contract which involve sale of goods. The sale of goods is essentially a part of law of contract. Consequently the laws regulating sale of goods have not therefore, done away with the general rules relating to contract; hence, offer and acceptance, consideration and other elements of a valid contract must be present in a contract of Sale of Goods.
SOURCES OF SALE OF GOODS LAW IN NIGERIA
The law governing sale of goods in Nigeria include English Law and Statute: The Sale of Goods Act, 1893 (a statute of General application in force in Nigeria). Before Nigerian independence, various Acts of British Parliament were made for or extended to Nigeria which was a British colony. The most important mode of reception of English law was through local statutes introducing English law. In Nigeria, the Sale of Goods Act is applicable except in the states of the former Western Region where the Sale of Goods Act has been repealed and replaced by the Sale of Goods Law, 1959. In order words, states of the Northern and Eastern regions and Lagos state are presently using Sale of Goods Act, 1893.
Common Law and equity: Apart from the Act, rules of Common Law, including the Merchant usage which is not inconsistent with the express provisions of the Sale of Goods Act, 1893 and doctrine of equity are also applicable. For instance, section 45 of the Interpretation Act of 1965, Cap 89 provides thus:
Subject to the provisions of this section and except in so far as other provision is made by any federal law, the common law of England and the doctrine of equity, together with statue of general application that were in force in England on the 1st day of January, 1900 in so far as they relate to any matter within the exclusive legislative competence shall be in force … in Lagos … elsewhere in the Federation”
Nigerian Statute: The legislative arm of government in Nigeria is vested with the power of law making. Some commercial items that fall under the exclusive legislative list are taxation, stamp duties, bill of exchange, currency, incorporation, banking etc.
Case Law/ Precedent: The court often in the course of interpreting statutes creates body of legal principles.
MEANING OF SALE OF GOODS
Sale of Goods is defined in section 1(1) of the Sale of Goods Act, 1893 as “A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price”.
This means that in addition to the ordinary elements of a contract, two other element, goods and money consideration, must also be present in a contract of sale of goods.
The above definition also envisages two situations namely.
- A contract of sale, in which the property in the goods is transferred from the seller to the buyer.
- An agreement to sell, in which the transfer of the property takes place ‘in future’ (at a future time), or a fulfillment of certain conditions.
A contract for the sale of goods yet to be manufactured is an agreement to sell because the property in the goods cannot pass until they are manufactured and ascertained.
That the definition of a contract of sale is recognized in terms of two transactions is indicated by section 1(3) of the Act which states that, “Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale; but where the transfer of the property in the goods is to take place at a future time or subject to some conditions thereafter to be fulfilled, the contract is called an agreement to sell.
CONCLUSION
This unit has exposed learners to the nature, sources and meaning of Sale of Goods in Nigeria in commercial transactions.
SUMMARY
Through this unit, learners have been able to know the following:
- Nature of Sale of Goods.
- Sources of Sale of Goods Laws in Nigeria.
- Meaning of Sale of Goods.
TUTOR MARKED ASSIGNMENT
- The law of commercial transaction in relation to Sale of Goods was alien to Nigeria until the advent of Sale of Goods Act of 1893. Do you agree?
- Distinguish between sections 1(1) and 1(3) of the Sale of Goods Act of
REFERENCES/FURTHER READINGS
- Sale of Goods Act,
- Rawlings, Commercial Law, University of London, (2007)
- Igweike, Nigerian Commercial Law, Sale of Goods, Malthouse Law Books, (second edition) 2001
- C. Okany, Nigerian Commercial Law, 1992.
- A. M. Agbonika and J. A. A. Agbonika, Sale of Goods (Commercial Law), 2009, Ababa Press Ltd
- J. Okoro (2013), Business Law for Professional Exams, MaltHouse Press Ltd