Uganda Christian University School of Law Law of Sales Course

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1 Uganda Christian University School of Law Law of Sales Course

1.1 Uganda Christian University Bachelor of Laws Courses For Year 1

1.2 Uganda Christian University Bachelor of Laws Courses For Year 2

1.3 Uganda Christian University Bachelor of Laws Courses For Year 3

1.4 Uganda Christian University Bachelor of Laws Courses For Year 4

1.5 [button link=”https://ugfacts.net/list-law-schools-uganda/” bg_color=”red”]List of Law Schools in Uganda[/button]

Uganda Christian University School of Law Law of Sales Course

UGANDA CHRISTIAN UNIVERSITY, MUKONO CAMPUS

BACHELOR OF LAWS YEAR TWO

FACULTY OF LAW

LLB 2

Course title: Law of Sales

Contact hours: 4 Lecture Hours and 2 Tutorial Hours per week

Credit units: 5

Course description

The law of sales is an extension of the law of contract with roots in the over 900 year old mercantile custom and usage: lex mercatoria (the law merchant).

The law of sales is intended to introduce you to the fundamental knowledge and skills in the area of domestic sale of goods transactions.

Trade in goods has been a central part of the social and economic fabric of Ugandan tribal societies since before our recorded history, and is perhaps the most common of all commercial transactions today. However, with the advent of colonialism certain changes to the informal trade in goods led to the adoption of the Sale of Goods Act (1893) (UK) with necessary modification to suit local circumstances.

The present course of study seeks to enlighten the student on the various provisions of the Uganda Sale of Goods Act (Cap. 82) and its application to daily commercial transactions involving the sale of goods.

Course aim

This course is intended to develop knowledge of the legal principles that underlie the very simple and everyday act of buying and selling goods in a domestic perspective (Uganda). It is also intended to develop skills in the construction of sale of goods contracts.

Course objectives

At the completion of the course, through interactive lectures, discussions, presentations, and research, the student should be able to:

Develop an understand the origins of Uganda’s law of sales;
Understand the fundamental principles of the law of sales;
Distinguish a sales transaction from other commercial transactions;
Identify the different participants in sales transactions, their obligations and potential legal liabilities;
Suggest remedies/ solutions to legal problems/ disputes that may arise in the course of sale of goods transactions;
Identify gaps in the law and suggest possible reforms in light of changing local circumstances and global trends in sale of goods practices.

Methodology of Study:

Lecture sessions will be points of contact between the lecturer/tutor and the students. Students are expected to attend lectures, ask questions, discuss opinions and receive guidance for further study and research.

Students are required to read and comprehend the recommended text and cases, and will be called upon to make presentations in class for discussion.

A reliance on ‘handouts’ (pre-compiled notes or photocopies) from the lecturer is discouraged since the very focus of legal education at this level is individual or group study with a view to contributing to discussion in class that will enable you to understand, and arrive at new and important realizations on the subject.

A good understanding of market trends in Uganda will also enable an excellent articulation of views in oral contributions in class, and the ability to incorporate that outlook into your coursework and examinations will attract high grades.

Guest speakers may be called in where possible to speak about particular issues under consideration.

Coursework assessment and examinations will be given according to the semester schedule. Coursework contributes 30% while the final exam contributes 70% to the final grade. You will receive instructions and assessment criteria prior to undertaking the coursework.

The students taking this course should have a good grasp of the law of contract, which is the foundation of all issues under consideration.

Note: The student is advised to meticulously attend to his/her work at all stages of this course of study. With that caution, diligence and industriousness will be rewarded, while incompetence will be treated with deserving contempt.

F. Faith in Teaching

Where applicable we shall explore how, and to what extent Christianity informs aspects of the course unit.

Course Materials

(i) Recommended Reading:

S Atiyah (2005), The Sale of Goods, 11^th Edn, Pitman, London, UK/ (2000) 10^th Edn.
I. Laibuta (2006), Principles of Commercial Law, Law Africa Publishing, Kenya.
Uganda Law Reform Commission: A study report on the reform of selected trade laws-sale of goods and supply of services law, ULRC Publication No. 28/2004
John Joseph Ogola (2005), Business Law, Focus Publishing Ltd, Kenya.
David Kelly, et al (2005) Business Law, 5^th Edn, Cavendish Publishing Ltd, London.
Dennis Keenan (2003), Smith & Keenan’s Law for Business, 12^th Edn, Pearson, Longman.
Keith Abbott et al, (2002) Business Law, 7^th Edn, Thomson, UK.
Ewan Macintyre (1998), Cases & Materials: Commercial Law, Blackstone Press, London.
Paul Dobson (1997), Charlesworth’s Business Law, 16^th, Thomson, Sweet & Maxwell, London.

(ii) Relevant Statutes:

Sale of Goods Act (Cap. 82) (all students must have this Act)
Contracts Act, 2010, Act No.6 of 2010

(iii) Bills:

The Sale of Goods and Supply of Services Bill
The Consumer Protection Bill

(iv) Other Relevant Links:

Uganda National Bureau of Standards Act, Cap 327, unbs.go.ug/
Uganda Consumer’s Protection Association (UCPA), ucpa.eac-quality.net
The East African Community Treaty, 1999 as amended in 2006 & 2007
The EAC Common Market Protocol and specifically the annexture on Free Movement of Goods (eac.int, for a free download of the protocol & annexture)

(v) Articles:

Ben K. Twinomugisha: Protection of the Consumer in the Sale of Goods Act (Cap. 79), The Uganda Law Focus, December 2001, pg. 72

(vi) Websites

Uganda Legal Information Institute, ulii.org (decisions of courts of Uganda)
British & Irish Legal Information Institute, bailii.org (British, Irish & European Union case law)

H: Couse Outline

Historical introduction to the law of sales
Law merchant and the sale of goods
Codification of the law relating to sale of goods in the 1893 UK sale of Goods Act
Sale of Goods Act and its introduction in Uganda
Interpretation of the Sale of Goods Act

The Contract of Sale of goods (Sections 1, 2, 3, 4, 5 Sale of Goods Act)

[Weeks 1- 2]

Definition of a contract of sales
Distinction between a contract of sale and other commercial contracts (barter/ exchange, gifts, bailment, hire-purchase, finance leasing, supply of services, loan on security for goods, agency etc).
Formalities and formation of a contract of sales;
Subject matter of a contract of sale;
Price in a contract of sales;

Cases:

Aldridge v Johnson (1851-58) 8 QB 118
Robinson v Graves (1935) 1KB 579.
Adam v Tanga – Mombasa Transport Co. (1955) 28 KLR 14.
Choitram v Lazar (1945) EA 157.
Dennant v Skinner (1948) 2 KB 164
Cammell Laird & Co. Ltd v Manganese Bronze & Brass Co. Ltd (1943) AC 402
Ghulam Kadir v British Overseas Engineering Corporation (E.A.) Ltd., (1957) EA 131
Helby v Mathews & Ors (1895) AC 471
Jiwa Singh v Rugnth Jerum (1945) EACA 21
John Nsaga v Haji Juma Kayongo c/o 607/1978 High Court of Uganda
Kanti Printing Works v Tanga District Administration (1970) HCB 257
Karia v Shah (1962) EA 43
Leslie & Anderson v Kassam Jivraj & Co. Ltd (1950) EACA 84
Maloo Manji v. Rev (1930 I Tan L.R. (R) 163
Matayo Musoke v Alibhai Garage Ltd. (1960) EA 31.
National Pharmacy Ltd. V Kampala City Council C/S 461/1977 Uganda High Court
Sivjani v Kenya Garage (1952) 26 KLR 25.
Suleman Virji Kassam Amosi 9 EALR 33
Sultani v J.B. Morgan (1960) EA 434

Transfer of Property and Title Under the Contract of sale

[Weeks 3-5]

Transfer of Title: Sec. 22-26:

The principle of Nemo dat quad non habet (one cannot pass a better title than that possessed)

Badilsche Anilin v Basle Chemical (1898) AC 200
Bishopsgate Motor Fianance Corp v Transport Brakes Ltd [1949] 1 KB 332
Butterwood v Kingsway Motors (1954) 1 WLR 1286
Dennant v Skinner (1948) 2 KB 162
Ingram v Little (1961) 1 QB 31
Johana Mbugwa v Mwangi Mugwe (1949)16 EACA 1
Karimbux v Dalgety (1934) 1 EACA 121
Kirkham v Attenborough (1897) 1 QB 201
Kursell v Timber Operator (1927) 1 KB. 298. C.A.
Re Wait (1927) 1 Ch. 606
Tarling v Baxter (1827) 6 QB 31
Underwood v Burgh Castle Brick & Cement Syndicate (1922) 1 KB 343,
Varley v Whipp (1900) 1 QB 31
Vithaldas Haridas & Co v Valki & Co., HCCS 34/1927
Weiner v Gill (1906) 2 KB 574
Weiner v Harris (1910) 1 KB 285
Atari Corporation v Electronics Boutique Stores [1998] 1 ALL ER 1010
Laury v John [1926] 1 KB 223
National coal board v Gamble [1959] 1 QB 11
Healy v Howlett & Sons [1917] 1 KB 337
Laurie & Anor. V John Dudin & Anor [1926] 1KB 223
Re an arbitration btn Shipton Anderson & Co. Ltd and Harrison Bros. & Co. Ltd [1915] 3 KB 676
Pignataro v Gilroy & Sons [1919] 1 KB 459
Nanka Bruce v Common wealth Trust Ltd [1926] AC 77

Transfer of Title by Non – Owner / Exceptions to Nemo Dat (Sections 22-26 SGA)
Eastern Distributors v Goldring (1957) 1QB 371
Central Newbury Car Auctions v Unity Finance (1957) 1 QB 371
Vallabhdas Hirji Kapadia v Laxmidas (1964) EA 378
Lloyds and Scottish Finance v Williamson (1965) 1 ALL ER 641
Pacific Motor Auctions v Motor Credits (1965) ALL ER 105
Dennant v Skinner (1948) 2 KB 164

Exceptions to Nemo Dat
Estoppel by representation & Negligence

Henderson & Co. Ltd v Williams (1895) 1QB 521

Farquharson Bros v J King & Co. Ltd (1902) AC 325

Sale by agent
Sale under special powers of sale
Sale Under Voidable Title

Phillips v Brooks (1919) 2 KB 243

Cundy v Lindsay (1878) 3 AC 459

Ingram v Little (1961) 1 QB 31

Lewis v Avery (1971) 2 ALL ER 507

Namjee Brothers v Awadh (1969) EA 521

Sale by Seller in Possession.

Staff Motor Guarantee Ltd v British Wagon (1934) ALL ER 322

Union Transport Finance Ltd. V Ballardie (1965) ALL ER 105

Worcester Finance Co. v Cooden Engineering Co. Lt. (1971) 3 WLR 661 / [1972] 1QB 210

Eastern Distributors Ltd. v Goldring (1957) 2 QB 600

Olds Discount, Ltd. v Krett (1940) 2 KB 117

Cundy v Lindsay (1878) 3 AC 459

Weingut v Leslie [1967] EA 480

Sale by Buyer in Possession

Worcester Financing C.V Cooden Engineering (1971) WLR 661

Lee v Butler (1893) 2 QB 318

Helby v Mathews (1895) 2 QB 318

Matayo Musoke v Allibhai Garage (Supra)

Pacific Motor Auction v Motor Credits (Hire Finance) Ltd (1965) AC 867

Mubarak Ali v Wali Mohamed (1938) 18 KLR 23

Kressaman v Lakhani (1964) EA 249

Newtons of Wembley v Williams (1964) 3 ALL ER 532, C.A

Sale by mercantile Agent in possession of goods with owner’s consent

Moody v Pall Mall Deposit (1917) 3 TLR 306

Rolkes v King (1923) 1 KB 282

Lloyds Bank v Bank of America (1938) 2 KB 147

Ordinary course of business

Pearson v Rose Young (1951) 1 KD 275

Stadium Finance Ltd. v Robbins (1962) 2 QB 664

Oppenheimer v Prazar & Wyatt (1907) 2 KB 519

Risk and Frustration (Sections. 21,33,7 & 8 [week 6]
Bolus & Co v Kirparam & Some (1915) 6 EALR
Elphich v Barnes (188) 5 C.P.D. 321
Sterns Ltd v Vickers Ltd (1923) 1 KB 78
Demby Hamilton v Bearden (1949) 1 ALL ER 435
Tarling v Baxter (1823) 6 lB.C. 360
Asfar & Co. Ltd V Blundell (1896) 1 QB 123, CA
Horn v Minister of Food (1948) 2 ALL ER 1036
Barrow, Lane & Ballard Ltd v Phillip Phillips & Co. Ltd (1929) 1 KB 574
McRae v Commonwealth Disposals Commission (1951) 84 CLR 377 (Aust)
Tsakirogolou v Noblee Thori (1961) 2 WLR 633/(1962) AC 93
Twentsche Overseas Trading v Uganda Sugar 12 EACA1
Financing Ltd. Stinson (1962) 3 ALL ER 386
Howell v Coupland (1876) 1 QB 258

Performance of the contract [week 7-8]
Kampala General Agency Ltd v Moody’s (EA) Ltd (1963) EA 549
Hussein Bachoov Clove Growers Ass. Of Zanzibar (1957) EA 193
Doola Singh & Sons v Uganda Foundary & MW (1957) 12 EA 193
Mohamedraza Rashid Nathani v Layland 8 ZLR 20
Harling v Eddy (1951) 2 KB 739
Oscar Chess Ltd. v Williams (1957) 1 WLR 370
Routledge v Mackay (1954) 1 WLR 615
DeLessalle v Guidford 1901 2 KB 215

Implied Duties of the seller
The duty to pass a good title

Sellers right to sell the goods
- All Kassan Virani v United Africa Co. (1958) EA 204
- Llanga v Manyoka 91961 EA 705
- Lakhamani Bros. Ltd. v Raja & Sons (1966) EA 178
- Rowland v Dival (1923) 2 KB 500, CA
- Butterworth v Kingsway Motors (1954) 1 WLR (1986)
- Niblett v Confectioners Material (1921) 3KB 387/ CA

Warranty of Quiet Possession
Lakhamani Bros. v Raja & Sons (1966) EA 178
Ali Kassam Virani Ltd. v United African Co. (1958) EA 204
Mason v Birmingham (1949) 2 KB 545.

Warranty that Goods are Free from Encumbrances
W. Bank v Poynter (1895) AC 56
Official Assignees of Madres v Mercantile Bank of India (1938) AC 287

The duty to deliver the goods, and at the right time, and in the right quantity
Duty to supply goods of the right quality

Basic Rule: Caveat Emptor

Implied Condition that Goods shall correspond with Description
Abdul Salem v East African Trading Co. 2 EALR 12
Livio Carli v Salem (s Mohamed (1959) EA 701
Alibhai Panju & Sons Ltd v Sunderji 16 EACA 72
Pan African Trading Agencies v Chande Bros 19 EACA 141
Juthalal Velji v Gulamjusen R Jirraji 16 EACA 75
Nurmohamed Murji Dattu EACA 294
Varley v Whipp (1900) 1 QB 513
Re Moore & Landaner (1921) 2 KB 519, CA
Christopher Hill v Fur Farm supplies (1968) 1 Llyod Rep. 457

Implied condition that goods must be fit for particular purpose
Norman v Overseas Motor Transport Ltd. (1959) EA 131
Omer v Besse (1960) EA 907
Dola Singh v Uganda F & M Works 12 EACA 33
Mozecedraza R. Mathani v Layllani 8 ZLR 3 20
Ashington Paggeries v Christopher Hill Ltd. (1972) AC 441
Baldry v Marshall (1925) 1KB 260
Spencer v Devon (1947) 1 ALL ER 284
Cammel Laird & C. Ltd. v Manganese Bronze & Brass Co. Ltd (1934) AC 402

Implied Condition that goods are Merchantable
Omer v Besse 2(1960) EA 907
Doola Singh v Uganda Foundry & Machinery 12 EACA 33
Bristol Tramways Co Ltd v Fiat Motors Ltd [1910] 2 KB 831
Wren v Holt (1903) 1 K.B. 668
Wilson v Richet Cooherell (1954) 1 QB 598
Geddling v Marsh (1929) 1 KB 668
Nibelett v Confectioners Materials Co. Ltd (1921) 3 KB 387
Taylor v Combined Buyers (1924) NZLR 627 at 645

Terms implied by trade usage

Flency V King Mohammed Walli & Co. 1ZLR 17

Terms implied in sales by sample
Jafferali Abdul, v Jan Mohammed Ltd., 18 EACA 21
Shaha Rhambhai Patel 23 EACA 329
Ali Kassam Virani Ltd Janmohamed Ltd 18 EACA 21
Godley v Perry (1960) 1 ALL ER 254

Exemption Clauses [week 9]
Omer v Basses 9 (1960) EA 907
Jafferali Abdul v Janmohamed Ltd (1957) 18 EACA 21
Wallis v. Pratt (1911) AC 394
Baldry v Marshall (1925) 1KB 260, CA
Andrews v Singer (1934) 1KB 170, CA
L’ Estrange v Graucob (1934) 2 KB 394
Karsales v Wallis (1956) 1 WLR 936/ (1956) 2 ALL ER 866
Suisse Atlantique v Rotterdamsche (1966) 2 All E.R. 61/ (1967) 1 AC 361
Photo Productions Ltd v Securicor Transport Ltd (1980) AC 827
Curtis V. Chemical Cleaning Cleaning Co. [1951] 1 ALL ER 631
Dar Es Salaam Motor Transport Co. Ltd V. Metha & Others [1952] 2 EACA 447
Spurling Ltd V. Bradshaw [1956] 2 ALL ER 121

The Duties of the Buyer [week 10]
The Duty to Pay the Price
D Kresman & Co. v Ltd. Lakhani Ltd. (1964) EA 294
Kari Singh v General workshops 18 EACA 4
National Pharmacy Ltd. v Kampala City Council Ltd (1977)

The Duty to Take Delivery
Kampala General Agency Ltd v Mody’s (EA) Ltd (Supra)
Alinius v Globe Merchantile Corpn. Ltd (1968) EA 114
Devshi S. Shah v Sudhnan Mohanlal (1951) EACA 79

Privity of Contract [week 11]
Shanklin Pier Ltd v Detel Products Ltd (1951) 2 KB 854
Carlill v Carbolic Smoke Ball (1893) 1 QB 258
Rose Standardized Disinfectant Co. (1968) 2 EACA 125

Remedies [weeks 11-12]

Remedies of the Seller

Jus In Rem (real remedies): Unpaid seller’s Rights and Powers against the goods

Omer v Besse (1960) E.A 907

Unpaid Seller’s Lien
Guster Adolf v Leslie (1967) EA
Mohamed Hussein v Kashayji etc (1952) 19 EACA 162
Housing & Co., v Barshi TZLR 272

Unpaid Seller’s Right of Stoppage in Transitu
Bethel Q. Co. v Clerk & Co. (1988) 20 QB 615
Lyons v Hoffnung (1890) 15 AC 391
Housing & Co v Dharsi TZLR 272
Mordaunt Bros v British Oil & Cake Mills Ltd (1910) 2 KB 502

Unpaid Seller’s Right of Resale
Bhangwanji & Co. v Mohamed (1953) 26 KLR 12
Housing & Co. Saleh Dharsi 1SZLR 272
Callagher v Shillick (1949) 2 KB 765

Jus In Personum (Personal remedies): remedies against the buyer himself
- Action for the Price
Ghulam Kadir v British Overseas Engineering Corp. (1957) EA 131
Devshi Samat Shah v Burhram M (1951) EACA 79
Hari Singh v General Workshop (1951) 18 EACA 4
Guggehhem Ltd v Ratguru (1952) 7 ULR 55