What Is the Definition of the Contract of Sale of Goods as Provided under Malaysian Statutory Law

The contract of sale of goods is a legal agreement between two parties where the seller agrees to transfer ownership of goods to the buyer in exchange for payment. In Malaysia, the contract of sale of goods is governed by the Sale of Goods Act 1957, which sets out the rules and regulations that apply to such contracts.

According to the Sale of Goods Act 1957, a contract of sale of goods is defined 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 the contract must involve the transfer of ownership of goods, which is usually done through the exchange of money.

The contract of sale of goods can be written or verbal, but it is always advisable to have a written agreement to avoid any disputes that may arise in the future. The written agreement should contain all the essential terms of the contract, including the description of the goods, the price, the terms of payment, and the delivery date.

Under Malaysian law, the contract of sale of goods also imposes certain implied conditions and warranties on both the seller and the buyer. These include:

1. Condition as to title: The seller must have the right to sell the goods and the buyer must obtain a good title to the goods.

2. Condition as to description: The goods must correspond with the description given by the seller.

3. Condition as to quality or fitness for purpose: The goods must be of satisfactory quality and fit for their intended purpose.

4. Condition as to sample: The goods must correspond with the sample shown to the buyer.

If any of these conditions are breached, the buyer may be entitled to reject the goods or claim damages from the seller. However, it is important to note that these implied conditions and warranties can be excluded or limited by the parties in the contract.

In conclusion, the contract of sale of goods is an essential agreement that governs the transfer of ownership of goods in Malaysia. The Sale of Goods Act 1957 provides the legal framework for such contracts and sets out the rights and obligations of both the seller and the buyer. As a copy editor, it is important to ensure that any written agreement for the sale of goods is clear, accurate, and complies with the statutory law.