Commercial Law Essay

1228 WordsMay 20, 20155 Pages
Introduction The Sale of Good Act 1979 covered a variety of different categories of sale of goods. A contract of sale of goods needs to differentiate from others transactions which are similar in some respect but in particular circumstance are quite different in some essential features. This essay would be discussed the legal differences between the contract of conditional sale and hire-purchase. Conditional Sale The term of ‘conditional sale’ is defined in s189(1) of the Consumer Credit Act 1974. This definition tells us that the conditional sale is the sale of goods where the price is pay in full or part of it through installment, the property will be remained to the supplier until the goods have been paid for or the fulfillment of condition. The condition here is normally required all the installments been paid but the condition could be anything decided by the supplier which would trigger the property of goods pass to buyer. Conditional sale does protect the suppliers against non-payment of buyer or any subsequent disposition of goods. However, it does not protect supplier against the possibility that the buyer may sell the goods to the third party before the buyer pay the full price. Although the supplier has retained the property of the goods until the buyer paid the whole price, but s25(1) of 1979 Act allowed the person who has ‘bought or agreed to buy goods’ to transfer a good title of goods to the third party. This was illustrated in Lee v Butler [1893]. This was a conditional sale agreement where the buyer was in possession of goods but do not have legal ownership until the final installment. However, this allowed the buyer to sell the goods to the third party and prevent the furniture salesman reclaim the goods. The right of seller is not been protected obviously. Could suppliers recover the purchase price from the buyers? The suppliers can sue

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