Skip to content

Sale of Goods Act

Sale of Goods Act (Cap 393, 1999 Rev Ed)

The Sale of Goods Act (“SOGA”) is based on the English Sale of Goods Act 1979. It applies to any contract where a seller transfers or agrees to transfer property in goods to a buyer in exchange for a price. The scope of the SOGA includes the following:

(a) Part II of the SOGA deals with the formation of the contract. This section also stipulates that certain terms are implied into contracts for the sale of goods. These include, inter alia, implied conditions that the seller has the right to sell the goods, that the goods are of a satisfactory quality, and, where the seller sells goods in the course of business and where the buyer makes known his purpose for buying the goods, an implied condition that the goods supplied are reasonably fit for that purpose.

(b) Part III of the SOGA addresses the effects of the contract. These provisions set out rules and presumptions concerning the transfer of property and title in goods as between the buyer and the seller.

(c) Part IV of the SOGA relates to the performance of the contract. In particular, this section sets out the respective rights and duties of sellers and buyers.

(d) Part V of the SOGA stipulates the rights of an unpaid seller against goods. Where the whole of the contract price has not been paid or tendered, the unpaid seller may have certain real rights against the goods, including a right of lien, a right of stoppage in transit, a right to withhold delivery, or a right to resell goods, as the case may be.

(e) Part VI of the SOGA sets out the rights of buyers and sellers against one another for breach of contract.

Play Video