Commercial Law Essay Example | Topics and Well Written Essays - 1500 words

Commercial Law - Essay Example The passing of any risk associated with preservation of the property sold or in the process of being sold is governed by Section 20(1) of the Sale of Goods Act 1979 which provides as follows:- â€Å"Unless otherwise agreed, the goods remain at the sellers risk until the property in them is transferred to the buyer, but when the property in them is transferred to the buyer the goods are at the buyers risk whether delivery has been made or not.†3 The purchase of the six speed drill appears to have vested in Alex prior to dispatch by the seller since he paid for the drill via credit card over the telephone. According to Section 20(1) of the Sale of Goods Act, 1979 the property was transferred to Alex and while in transit remains at his risk. However, the drill did not conform to specifications since it was a three speed drill rather than the specified six speed drill. As a result, Alex as buyer has a right to reject non-conforming goods. The law presumes that the parties intend that the goods will fit the description as provided for in the sale of goods’ contract. If at the time of shipment the goods do not comport with the contract description: â€Å"†¦if there was a quantitative defect in the goods amounting to a breach of a fundamental term or to a breach of condition, or to a breach of an intermediate term which cause him serious prejudice.†5 A buyer is therefore at liberty to reject goods for the most part if they fail to correspond with the description of the goods sold via the contract for sale. This is possible even when the buyer does not incur any damages or loss as a result of the non-conforming goods.6 However the courts have taken pains to limit the application of this rule by effectively narrowing the ‘concept of the description of the goods.’7 It was held in Christopher Hill Ltd. v Ashington Piggeries Ltd [1972] AC 441that a statement contained in a contract may