Question Tag: Conditions of Sale

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BCL – July 2023 – L1 – Q2a – Sale of Goods/Hire Purchase

Analyze the fitness for purpose in a sale of goods scenario and the seller's fundamental obligation under the Sale of Goods Act.

Kofi Adabla visited the showroom of Car Dealers Ltd, a company that sells used vehicles. Kofi Adabla informed Car Dealers Ltd that he needed a vehicle that could withstand the rugged terrain. Kofi Adabla had his Mechanic with him. The salesman at the Car Dealers Ltd recommended a slightly used vehicle to Kofi Adabla. Kofi Adabla’s Mechanic did a thorough examination of the vehicle after which Kofi Adabla decided to buy the vehicle at a price of GH¢55,000.

Three months after Kofi Adabla bought the vehicle, it developed a mechanical fault which was promptly repaired by Car Dealers Ltd under the terms of sale, exhausting the warranty. Three months later, the vehicle developed another mechanical fault but Car Dealers Ltd refused to repair it. Kofi Adabla now threatens to sue.

Required:

i) Explain whether Kofi Adabla will succeed on a claim that the vehicle was not fit for the purpose for which it was acquired and that there was a breach of the conditions of sale. (5 marks)

ii) State the fundamental obligation of the seller under the Contract for Sale of Goods under the Sale of Goods Act, 1962 (Act 137). (5 marks)

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BCL – July 2023 – L1 – Q2a – Sale of Goods/Hire Purchase

Analyze the fitness for purpose in a sale of goods scenario and the seller's fundamental obligation under the Sale of Goods Act.

Kofi Adabla visited the showroom of Car Dealers Ltd, a company that sells used vehicles. Kofi Adabla informed Car Dealers Ltd that he needed a vehicle that could withstand the rugged terrain. Kofi Adabla had his Mechanic with him. The salesman at the Car Dealers Ltd recommended a slightly used vehicle to Kofi Adabla. Kofi Adabla’s Mechanic did a thorough examination of the vehicle after which Kofi Adabla decided to buy the vehicle at a price of GH¢55,000.

Three months after Kofi Adabla bought the vehicle, it developed a mechanical fault which was promptly repaired by Car Dealers Ltd under the terms of sale, exhausting the warranty. Three months later, the vehicle developed another mechanical fault but Car Dealers Ltd refused to repair it. Kofi Adabla now threatens to sue.

Required:

i) Explain whether Kofi Adabla will succeed on a claim that the vehicle was not fit for the purpose for which it was acquired and that there was a breach of the conditions of sale. (5 marks)

ii) State the fundamental obligation of the seller under the Contract for Sale of Goods under the Sale of Goods Act, 1962 (Act 137). (5 marks)

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