Sale of goods act s 14 series#

All statutory or other conditions or warranties, express or implied, with respect to the merchantability or satisfactory quality of the cocoa liquor, or its fitness for any particular purpose or otherwise are hereby excluded.вЂќ вЂњThe cocoa liquor hereunder is sold by the Seller on an вЂњAS ISвЂќ basis. The contractual specifications as to quality state: The product is to be delivered and processed in Spain. The case was eventually decided on another issue but the Court indicated that had it been required to decide the point, it would have found that вЂњas isвЂќ was not sufficient to exclude the buyer's right to claim damages, although it would be sufficient to exclude the buyer's right to reject the goods.Д¬ompany B purchases 500MT of discounted and below market price cocoa liquor from Company A. In a case 2 concerning the sale of a secondhand ship, the Court heard lengthy argument as to whether вЂњas isвЂќ was sufficient to exclude section 14(2) SOGA. However, in our view, it would be prudent for the seller to exclude these implied terms expressly, in order to avoid any doubt. The terms вЂњas isвЂќ and вЂњwith all faultsвЂќ are intended to fulfil this requirement. Express language is required in order to do so successfully. It is difficult to exclude conditions implied into a contract by statute. Under English law, section 14 of the Sale of Goods Act 1979 (SOGA) implies into sale of goods contracts certain conditions as to the quality of the goods and their fitness for purpose. If the buyer accepts the goods after inspection (or chooses not to inspect them) and it turns out that the received goods (as they were upon inspection) are unsuitable, the buyer will have no recourse against the seller in respect of quality or condition.

In an вЂњas isвЂќ transaction, the buyer is typically given the right to inspect the goods before deciding whether to purchase them. The buyer is bound to accept the goods as they are and assumes the risk that they may fail to meet expectations, or may have defects. вЂњFor cocoa beans sold under the description вЂall faultsвЂ™ or вЂtel quelвЂ™ the Buyer shall not be entitled to claim arbitration for quality and/or conditionвЂќ. A typical example can be found in the FCC Contract Rules for Cocoa Beans 1: вЂњAs isвЂќ, вЂњwith all faultsвЂќ and вЂњwith all faults and imperfectionsвЂќ are common expressions used by parties when they are contracting to sell goods in their current condition.

Sale of goods act s 14 series#

This is the next instalment in our series of articles focussing on issues affecting soft commodities traders. What liability, if any, does the seller have in contracts made on this basis? This article will consider the significance and scope of вЂњas isвЂќ clauses, by way of case studies focussing on cocoa and coffee. This places the risk as to quality on the buyer. However sometimes, goods are sold on an вЂњas isвЂќ basis. Sale of goods contracts typically feature carefully drafted quality specifications, so that both parties understand clearly what quality of goods is to be delivered. Briefings Soft Commodities: Buyer beware.