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Goods: Sales and Securities (2nd edn)

Judith Sihombing
Copyright Date: 1997
Pages: 188
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  • Book Info
    Book Description:

    The purpose of this book is to introduce elements of the law concerning dealings with goods in Hong Kong to non-lawyers. It assumes that the reader is familiar in outline with the legal system in Hong Kong and knows something of the law of contract. Technical terms are explained in Chapter One to enable the reader to study the chapters on substantive law without needing to consult a legal dictionary. The dealings which can be effected with goods have been described in some detail. This book contains all that an accounting student needs to study for Hong Kong Society Accountants' Examination in respect of goods. It is one of a series published by Hong Kong University Press, under the General Editorship of Professor Derek Roebuck, to provide accounting students with an introduction to Hong Kong law.

    eISBN: 978-988-220-146-0
    Subjects: Law

Table of Contents

  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-x)
  3. General Editor’s Foreword
    (pp. xi-xii)
    Derek Roebuck

    It is now more than five years since the second edition of this book was published and there have been important changes in the law relating to the sale of goods. Though in general this part of Hong Kong’s law has stayed close to that of England and is likely to do so for some time, despite the change of sovereignty next July, there have been some developments in the case law since the last edition. Moreover, there have been legislative reforms in relation to consumer protection, which have brought Hong Kong’s law up to date and closer to that...

  4. Preface to the Third Edition
    (pp. xiii-xiv)
    Judith Sihombing
  5. Chapter 1 Introduction
    (pp. 1-24)

    This book concerns goods. It is designed:

    to explain the provisions of the Sale of Goods Ordinance(SOGO) and the remedies associated with the operation of those provisions,

    to show how goods can be used as security for borrowing money and how goods can be purchased when the buyer has insufficient funds to pay at the time of purchase,

    to discuss the ways in which the owner of goods can lose property in them unwillingly,

    to note the terms which can be or must be inserted in a contract for the sale of goods, and

    to mention certain contract principles associated...

  6. Chapter 2 Contracts for the Sale of Goods
    (pp. 25-52)

    SOGO is based on the English Sale of Goods Act 1893 which codified, or put into statutory form, all the elements of the existing common law and the law merchant relating to goods. These elements had been developed by the practice and customs of merchants over the centuries, and by the court’s interpretation of these customs and practices and of legislation dealing with particular aspects of goods. SOGO was first enacted in 1896 and has been amended from time to time since then. In its present form (Sale of Goods Ordinance Cap 26), it still follows the English legislation very...

  7. Chapter 3 Transfer of Property: Goods
    (pp. 53-82)

    A person may transfer or pass property or title (in some circumstances the terms may be interchangeable) in his goods in a number of ways including sale, gift, exchange, and under a contract for work and materials. In addition, title to goods can be lost involuntarily where goods owned by one party are attached:

    to the land of another (and the goods become fixtures (2.4.2), or

    to the goods of another (by accession), or

    by the intermixing with the goods of another (by confusion or specification).

    These terms are explained later (3.3.1).

    The law recognizes this type of involuntary acquisition...

  8. Chapter 4 Performance of the Contract of Sale
    (pp. 83-94)

    Performance of a contract for the sale of goods involves the observance of technical rules on matters such as delivery, acceptance, and rejection; these rules are provided for in SOGO (ss29–39). ‘Performance’ requires the delivery of the goods by the seller, and their acceptance and payment for them by the buyer (s29). In examining whether this has occurred, and the effects of failure to ‘perform’, it is necessary to look at other relevant sections. These include:

    s30 which provides that payment and delivery are concurrent conditions;

    s31 which lists several rules as to the delivery of goods, all of...

  9. Chapter 5 Real Remedies of the Seller
    (pp. 95-106)

    Real remedies, or remedies in rem (1.18) are those which entitle the holder to take action against the goods themselves rather than merely having to sue for their price or for damages. These rights in rem or real rights enable the unpaid seller to look to the goods as a kind of security for payment of the price. They are additional to the seller’s personal action for damages on the contract, in cases where the buyer breaches the contract by non-payment. SOGO (s41) lists three real remedies over the goods to which the unpaid seller is entitled by implication of...

  10. Chapter 6 Seller’s Remedies
    (pp. 107-120)

    An unpaid seller is given three real remedies by SOGO (Chapter 5), the right to a lien, the right of stoppage in transitu, and the right of resale. The last right may not need statutory protection, for depending on the conduct of the contract, the seller may retain his ownership of the goods and thus be able to pass good title to a third party, without the need for statutory assistance. In addition to his real rights, the seller has two possible personal actions: the action for the price and the action for damages for non-acceptance. Personal actions are not...

  11. Chapter 7 Buyer’s Remedies
    (pp. 121-132)

    On the seller’s breach of the contract for the sale of goods, the buyer has five possible remedies: to reject the goods (ssl3, 32, 33 and 36–38), to rescind the contract (under the Misrepresentation Ordinance), damages, specific performance (s54), and an action for return of the price.

    Several sections are relevant in the buyer’s rejection of the goods:

    13 which provides for the circumstances in which a condition is to be treated as a warranty,

    s32 where the buyer has a right to reject the goods when there has been a delivery of the wrong quantity,

    s33 relating to...

  12. Chapter 8 Contracts for the Sale of Goods — International Sales
    (pp. 133-146)

    There are two main types of contracts used in international contracts for the sale of goods where the goods are shipped from on country to another. These are the c.i.f.(cost, insurance, freight) contracts and the f.o.b. (free on board) contracts. These sales also involve the use of documentary credits (which are also called bankers’ credits or letters of credit) to facilitate the payment due under these international contracts. Part of the documentary material relevant to the international contract of sale is the bill of lading. A bill of lading is the receipt given by the master of the ship, on...

  13. Chapter 9 Credit Agreements and Personal Property
    (pp. 147-170)

    There are several methods of obtaining credit in Hong Kong where personal property is used in some way. Some of these are true security transactions involving the use of personal property as the collateral for the loan. Other transactions are treated as quasi-securities, for example the conditional sale, the credit sale and the hire-purchase agreement. For example the form of the conditional sale, commonly called a Romalpa contract, is not that of a security but is an example of a retention of title situation; however, dependent on the terms of the particular contract, the courts will usually find that the...

  14. Table of Statutes
    (pp. 171-174)
  15. Table of Cases
    (pp. 175-178)
  16. Index
    (pp. 179-182)