INVESTIGATING THE EFFICIENCY OF THE ACT TO A MODERN DAY SALESMAN; THE SALES OF GOODS ACT

ABSTRACT

A sale is a transaction among people wherein the client gets tangible or intangible goods, services, or property in change for cash or every other shape of valuable(s) or matters of value.   Sale is largely an agreement among the client and the vendor of the specific appropriate or carrier in question. The Sales of Goods Act can’t be mentioned without making point out of the business law due to the fact it’s far a subset of it. The Sales of Good Act is one wherein a dealer transfers or has the same opinion to switch the assets or items to the client for a cash attention referred to as the price. An agreement of sale can be absolute or conditional. A settlement of sale may be an outright sale or a settlement to sell. It is an outright sale if by the point the agreement is made; the products are transferred from the vendor to the consumer. The aim of this research is to analyze the efficiency of the Sales of Goods Act (SOGA) to a modern day sales man. This research work was carried out qualitatively by taking an in-depth study of court cases as our case study. Six court cases were gathered out of which three from the year 2000 till date and the other three are from year 1999 downwards. In each scenario, the court verdict based on the Sales of Goods Act was compared and contrasted and there appeared a disparity in how efficient the law was back then and is now. In conclusion, considering the nature of the result, it can be said that the Sales of Goods Act is still effective and efficient even in this days. It is therefore recommended that even though the Act us still effective, there is need for some amendments to be carried out on the act.

 

 

 

 

CHAPTER ONE

GENERAL INTRODUCTION

1.0.     BACKGROUND OF THE STUDY

Regardless of the context, a sale is basically a settlement among the consumer and the vendor of the specific property or carrier in query. It is a transaction among parties, commonly a client and a supplier, wherein items or offerings are exchanged for cash or different assets.

To simply put it, Sales of Goods Act is an agreement in which there’s an exchange of goods between the client and the supplier and vice versa. In doing this, the supplier exchanges the goods for a due consideration which is otherwise known as the price. This act outlines a degree of compulsory legal regulations pertaining to a set of preconceived and implied terms, whose goal is to showcase the business expectations in the most commonly agreed sales agreement. When there’s no other contract, these terms will rule contract within the scope of the Act.^[1]

A sale determines that the vendor presents the customer with goods or carrier in alternate for a selected amount of cash or distinctive assets. To establish a sale, both the consumer and the vendor have to comply with the unique terms of the transaction, which includes the rate, amount of the goods sold, and shipping logistics.

In addition, the client being supplied has to definitely have the ability to purchase, and the vendor has to have the authority to switch the object or provider to the client. To be officially taken into consideration as a sale, a transaction needs to contain the changing of items, offerings, or charges among a purchaser and a dealer. If one party transfers an excellent or carrier to any other

 

without receiving something in return, the transaction is much more likely to be handled as a present or a donation, especially from an earnings tax perspective.

To establish a sale, both the consumer and dealer have to be considered competent, and that they need to agree at the terms or dictate of the sale, that the provider in query is to be had to buy, and that the vendor has the authority to pass the object to the consumer. A settlement via way of means of which one of the agreement in parties, referred to as the vendor, offers a factor and passes the identify to it, in change for a sure rate in present day cash, to the opposite party, who’s referred to as the purchaser or purchaser, who, on his part, has the same opinion to pay such charge.

The barter system is that in which goods being demanded of from the seller rather than being paid for in cash, payment is made for such goods by exchanging another goods of equal value for the demanded goods. In a barter system, goods are given not based on charges especially in monetary form but rather in exchange for the said goods supposedly purchased.

In order to establish a satisfactory sale, the following must be in place:

• People to be involved in the sales process
• Object to be sold
• The Price
• The agreement of the agreeing people^[2].

 

 

 

1.1.0    STATEMENT OF THE PROBLEM

Ever since the emergence of what is known as exchange of goods or service for victual between the buyer and vendor, issues have always arisen that may linger for a long period of time. There has to be a mediating factor upon which either of the two parties can tread or stand upon to effectively do business without fear of extortion or getting substandard goods or service. Though this is in place, the effectiveness of a modern day business is questionable. Therefore analyzing the efficiency of the Sales of Goods act becomes paramount and pertinent.

1.2     AIMS AND OBJECTIVE OF THE STUDY

Human needs are unlimited and insatiable but in a bid to satisfying these unending needs, there has to be a continual exchange of resources for the satisfaction of these needs. At one point or the other, there will come a time where the rights of one of the parties involved in this process or exchange will or might be infringed upon and corrective measures taken but there has to be a backbone for this argument to rely on. For this process to be effective there has to be an established law guiding it which is The Sales of Goods Act. The aim of this paper is therefore to analyze how efficient this act is especially to the modern day sales man.

1.3.     SCOPE AND LIMITATION OF THE STUDY

The scope of this research is limited to determining the effectiveness and efficiency of the sales of goods act on the modern day businessman.

The analysis was carried out by taking a look into various court cases and checking to see if the factors needed for the formation of a contract is present and other key necessities as contained in the sales of goods act. Another limitation faced is in the selection of court cases to analyze as it was seen or can be observed the proceedings is some of the cases seen during the course of the research started year(s) before the decided timeframe for the work but whose final judgment fell in place in the decided year

 

1.4.      SIGNIFICANCE OF THE STUDY

The findings of this research work can be used;

• This research work can be used as a basis upon which further researching of the relationship between the modern salesman and the sales of goods act can be based
• Also it can serve as a background of evaluating the relationship of the Act with both the traditional and Modern salesman.
• Having determined the efficiency of the Act, modern day businessman can

therefore enforce the use of the act both in contract formation with a potential client and a guiding principle in their dealings with each other.

• In case of a breach, Court or Authority concerned can based on this research findings deliver judgment as contained in the Act with respect to their agreement during the process of contract formation

 

1.5.      RESEARCH METHODOLOGY

Whenever issues arose amidst buyers and vendors during transference of goods or service in exchange cash victuals e.g. money, the court serves the purpose of deciding who is right or wrong with respect to the series of available evidences and the Sales of Goods Act. Hence, this research work was done with an in-depth study of 6 court cases. 3 of these cases are from the year 2000 till date while the other 3 are from year 1999 downward. The court verdict concerning these cases were analyzed out of which our deductions and recommendation was made.

1.6.      LITERATURE REVIEW

The Sale of Goods law is a law of general application in Nigeria. Though some of the States of the Federation have had to re-enact them into their State laws with a little adjustment to meet their local requirements, the majority of states where this is yet to be done still depend on and use the Sale of Goods Act, 1893.^[3]4

The first comprehensive sale of goods statute was inaugurated into UK law in the pattern of the Sale of Goods Act 1893 as stated by Simon^[4][5]. He also said that the Sale of Goods Act 1893 is basically a codification of laws that ensued from previous prosecution law, and the prosecutions from which the Act is gotten are essentially always clashes between merchants. As defined by Nwocha^[6], Nigeria’s Sales of Goods law is ruled primarily by the Sales of Goods Act 1893, which used to be an English Law but adopted in Nigeria as one of the laws generally applied in the country long before political independence. Obilade^[7] declared that as it is with some other laws that are generally used or applied, this law has become old and out of conformity with the present state of  business agreement that has to do with both movable and immovable items.

According to the definition in the S.1 of the Sales of Goods Act, Okanny^[8] affirmed that added to the normal requirements of a contract, two other factors are essential that is, the goods

 

and monetary consideration. The contract of sale in the Act can both include Sale or a consensus to sell or trade. A consensus or agreement however becomes a sale when the required factors or actions are met or taken or time period for it had elapse. S.62 however defines goods all chattels whether it money or things agreed on to be severed or shared before or during or under sales contract. However, Okanny classified property from three point of views:

1. Material upon which you can express ownership.
2. Owning something itself.
3. Having interest in a thing lower than ownership but still having some rights.

Sagay^[9]implied that for a contract or an agreement to be factual or valid, it must include the following: an offer must be made, the offer must be accepted, considered and there must be an intention to enact a legal relationship.

In like manner, a contract of sale that must be enforced must be valid with respect to the ability of the parties, forms of the contract whether it be oral or written as it has to do with express and implied terms. Consideration as defined by Macintyre^[10]is the price that is to be expressed in monetary forms.

Also one of the element of a contract of sales of goods is the goods in its actual self which is otherwise known as property.^[11] The goods varies with respect to the time or urgency in acquiring the commodity.

 

 

 

1.7.      SYNOPSIS OF THE CHAPTERS

The summary of the chapters are as follows:

Chapter One of this study focuses on the background of this study with a focus on some of its essential features and things to note. Chapter reflects on what sales is all about and its requirements. Also comprised in this chapter is the statement of the problem, the aims and objectives of carrying out this study, the method used in carrying out the research work and a brief summary of the literature review.

Chapter two however features the concepts of the sales of goods act. A concept which highlights business law as law from whence the sales of goods law was drawn. The sales of goods law as described in this chapter is subdivided in five parts: formation of the contract, effect of the contract, performance of the contract, rights of an unpaid seller and suits for breach of contract.. Each of these subsets were further looked into and explained.

Chapter three is explains the reason or need for the sales of goods act. It then went ahead to define between the traditional salesman and the modern salesman. Stated here as well is the steps or materials used or focused on in analyzing the efficiency of the sales of goods act on the modern salesman

Chapter four gave a closer look into who the traditional salesman and the modern salesman is. It went ahead to highlight the differences that existed between the two and in like manner the chapter also includes or consist of analysis of this study where our aforementioned data or scenario or phenomenon were analyzed

A summary of the entire research work, conclusion drawn from the results of the analysis and recommendation made with respect to the result of the analysis as well are all contained or found in the chapter five of this research work.

 

1.8.       DEFINITION OF RELEVANT TERMS

The following terminologies are defined as follow:

• Contract: it is an agreement that occurs between two or more parties which establishes. An interchangeable legal duty to perform or not to perform a particular task^[12].
• Offer: it is a promise made by one party with the aim that it shall become enforceable on the party making it when accepted by the party to whom it was intended or addressed^[13]
• Acceptance: It is a show of assent or agreement to the dictate of an offer.^[14] For a contract to be enacted or considered valid, acceptance must be made in a positive way, either by words, in writing or both.¹⁶
• Consideration: It is a valuable item given by the parties to a contract that lures them to enter into the agreement to exchange mutual performance.^[15]

 

• Invitation to Treat: this is a simply declaring your intentions to enter into negotiation; it is not an offer, and cannot be accepted so as to form a binding contract.^[16]
• Intention to Create Legal Relationship: This is a used in contract law to state whether a court should presume that parties to an agreement wish that it be enforceable by law. The court looks out for evidence that the parties to the agreement planned that it should be ruled by, and subject to, the law of contract; so that the agreement gives rise to legal consequences.^[17]
• Jurisdiction: An area wherein political or judicial authority may be exercised.^[18]
• Modern Day Salesman: A salesman who employs modern means of selling in his approach to meeting and transferring goods or service with potential customers. In his dealings, he employs various forms of technique and technology in the course of his sale. With the advent of technology (the internet and social media) he may not necessarily need to meet his potential buyer physically before transfer of goods or service is made.

[1] https://www.lawteacher.net/free-law-essays/commercial-law/definition-of-sale-of-goodsactcommercial-law-essay.php?vref=1> accessed 22 August 2021

[2] https://www.upcounsel.com/legal–def–sale 

[3] Nwocha, M. E. (2018). Law of Sale of Goods in Nigeria: Interrogating Key TB of the Sale of Goods Act Relating  to  the  Rights  of  Parties  to  a  Sale  of  Goods  Contract.  Beijing  Law  Review,  9,  201- ⁴ .https://doi.org/10.4236/blr.2018.92014

[4] Simon T. (2018).UK Sale of Goods Legislation 1893-2015: Towards Plain(er) Language?, ASp [Online],74 |

[5] ,http://journals.openedition.org/asp/5411 ; DOI : https://doi.org/10.4000/asp.5411

[6] Nwocha, M. (2018) Law of Sale of Goods in Nigeria: Interrogating Key Elements of the Sale of Goods

ActRelatingto the Rights of Parties to a Sale of Goods Contract. Beijing Law Review, 9, 201210.doi:

10.4236/blr.2018.92014 

[7] Obilade, O. A. (2019). The Nigerian Legal System. Ibadan: Spectrum Books Ltd.

[8] Okany, M. C. (2000). Nigerian Law of Property (2nd ed.). Enugu: Fourth Dimension Publishing Co. Ltd.

 

[9] Sagay, I. E. (1993). Nigerian law of contract (2^nd Ed.). Ibadan: Spectrum Books Ltd

 

[10] Macintyre, E.(2008). Business Law. England: Pearson Education Ltd

 

[11] Bose, D. C (2008). Business Law. New Delhi: PHI Learning Private Ltd.

[12] Orient Bank (Nig.) Plc v. Bilante International Ltd [1997] 8 NWLR (Pt 515) 37 at 76.

[13] I. E. Sagay, Nigerian Law of Contract, (Ibadan: Spectrum Books Ltd., 2007), p. 10; Dahiru v Kamale [2005] NWLR (Pt 580) 672.

[14] Ibid., p. 20; Daspan v. Mangu Local Government Council [2013] 2 NWLR (Pt 1338) 203 at 233, para. D.  ¹⁶ Ezike, above, note 8, p. 50.

[15] Nwachukwu v. Okaelu [2015] LPELR-24276 (CA).

[16] Clashfern and Lord Mackay, Halsbury’s Laws of England, Vol. 9(1) (London: Butterworths, 1998), p.

463; Amana Suites Hotels Ltd v. PDP [2007] 6 NWLR (Pt 1031) 453.

[17] Balfour v. Balfour [1919] 2 KB 571 at 627; Akauve Moses Osoh and 40 Ors v. Unity Bank Plc [2013] 9  NWLR (Pt 1358) 1.

[18] Black’s Law Dictionary, (9th edn, USA: West Publishing Co., 2004), p. 928.

INVESTIGATING THE EFFICIENCY OF THE ACT TO A MODERN DAY SALESMAN; THE SALES OF GOODS ACT