One can only transfer the ownership of a good if they are also the owner. The third party who bought in good faith will be weaker then the claim of the original owner.
Description
Goods must correspond with their descriptions. If it is not, the seller will face strict liability. For business-to-consumer transactions this term cannot be excluded from the contract, however this term might be excluded in business-to-business transactions.
Satisfactory Quality (USA: Warrant of Merchantability)
The goods must meet thereasonable person test of satisfactory quality. This means that the goods should be what a reasonable person would expect by considering price, description and other circumstances. However, this right is lost when a defect has been mentioned by the seller in advance or where the buyer inspected the good and the defect was obvious.
Fit For Purpose
The goods must be reasonably fit for their purpose. This indicates that the buyer has to make the seller aware of why they would like to purchase the good. If that purpose has not been made clear, the buyer cannot claim any remedies.
Model, Sample and Installation
Similar to the implied terms of description, the good must match the model, sample and installation unless the seller has pointed out the differences in advance. If the seller agrees to perform the installation or arranges the installation, that has to be performed correctly
Parties Involved in the Sale of Goods
The sale of a good is usually done between two main parties:
Rules and Risks involved in Transfer of Good between two parties
When a good is sold from party to party and the buyer becomes the owner, this is when they assume all the risks involved with the good. Even though the buyer is fully responsible for the good until they have paid the good in full, they still have duty to assume the loss or damage of the good. If the terms of ownership of risk are not defined by the parties, then the ‘default’ law of Sale of Goods applies. For example, for a specific good, the ownership is identifying when the good is in the delivery stage. Additionally, for unascertained goods, the ownership is passed until the good is identified and sent to the buyer. On the other hand, when there is a business to customer sale, the business still has the duty to assume the risk of the good until it is delivered and received by the customer.
The Indian Sale of Goods Act 1930 is a mercantile Law, which came into existence on 1 July 1930, during the British Raj. It provisions for the setting up of contracts where the seller transfers or agrees to transfer the title in the goods to the buyer for consideration. It is applicable all over India, except Jammu and Kashmir. Under the act, goods sold from owner to buyer must be sold for a certain price and at a given period of time.]
New Zealand's Sale of Goods Act was passed in 1908 by the Liberal Government of New Zealand. It was amended several times, including by the Sale of Goods Amendment Act 1961 and the Sale of Goods Amendment Act 2003, before finally being repealed and replaced by Part 3 of the Contract and Commercial Law Act 2017.
The Sale of Goods Act was replaced by the Consumer Rights Act 2015, which covers contracts entered into from 1 October 2015. The earlier legislation was:
