What it does
The Sale of Goods Act 1895 codifies the law relating to contracts for the sale of goods in South Australia. Its substantive operation is divided into six Parts that track the chronological and logical stages of a commercial transaction.
Part 1 (Formation of the contract) establishes when a contract comes into existence and what terms are implied into it. Section 1 distinguishes a completed "sale" (where property passes immediately) from an "agreement to sell" (where transfer is future or conditional). Capacity is governed by the general law, subject to the rule in s 2 that minors or those lacking mental capacity must pay a reasonable price for "necessaries". Contracts may be made in any form (s 3), and the subject matter may be existing or future goods (s 5). Perishing of specific goods before contract formation renders the contract void (s 6), while perishing after an agreement to sell but before risk passes avoids the agreement (s 7). Price may be fixed by the contract, by a prescribed manner, by prior dealing or, failing all else, by what is reasonable (s 8). Valuation by a third party is contemplated in s 9.
Division 5 implies fundamental undertakings. Time of payment is presumptively not of the essence (s 10). Breach of a condition may be treated as breach of warranty in defined circumstances (s 11). Section 12 implies a condition as to title, warranties of quiet possession and freedom from undisclosed encumbrances. Sales by description carry an implied condition of correspondence with description (s 13). Section 14 sets out the limited circumstances in which conditions of fitness for purpose and merchantable quality are implied; these are negatived where the buyer does not rely on the seller's skill, has examined the goods, or where the sale is under a patent or trade name. Sales by sample import three implied conditions (s 15).