Sale of Goods Act 1979

The Sale of Goods Act 1979 is a consolidating statute that codified the law relating to the sale of goods in the United Kingdom. It replaced the Sale of Goods Act 1893, which had codified the common law of sale. The Act implies fundamental terms into contracts for the sale of goods: the seller must have the right to sell the goods; goods sold by description must correspond with that description; goods must be of satisfactory quality (formerly merchantable quality); and goods must be fit for their particular purpose. The Act also governs when property in goods passes from seller to buyer, risk, transfer of title, and remedies for breach of contract.

Legal area: Contract law regulates legally binding agreements between parties, establishing the rules for formation, performance, breach, and remedies.

Citation: Sale of Goods Act 1979 (1979 c 54)

Full text: https://www.legislation.gov.uk/ukpga/1979/54

Key Provisions

• Section 12: Implied term as to title (right to sell)
• Section 13: Sale by description (goods must correspond)
• Section 14(2): Satisfactory quality implied term
• Section 14(3): Fitness for particular purpose implied term
• Sections 16-19: When property passes (ascertained and unascertained goods)
• Section 25: Seller in possession after sale (nemo dat rule exceptions)
• Part VI: Remedies for breach (rejection, damages, specific performance)

Significance

The Sale of Goods Act 1979 is the foundation of UK commercial law. Its implied terms cannot be excluded in consumer sales. The test of ‘satisfactory quality’ (introduced by the Sale and Supply of Goods Act 1994) replaced ‘merchantable quality’. The Act applies to business-to-business sales, while consumer sales are now primarily governed by the Consumer Rights Act 2015. The nemo dat quod non habet principle and its exceptions, particularly the market overt rule (abolished in 1994), have been extensively litigated.