Supply of Goods Act 1982 · 2020 Revised Edition · Part 1
2. Implied terms about title, etc.
Feedback & supportIn a contract for the transfer of goods, other than one to which subsection (3) applies, there is an implied condition on the part of the transferor that in the case of a transfer of the property in the goods he has a right to transfer the property and in the case of an agreement to transfer the property in the goods he will have such a right at the time when the property is to be transferred.
contract for the transfer of goods
“contract for the transfer of goods” means a contract under which one person transfers or agrees to transfer to another the property in goods, other than an excepted contract.(2) For the purposes of this section, an excepted contract means any of the following:(a)a contract of sale of goods;(b)a hire-purchase agreement;(c)a transfer or agreement to transfer which is made by deed and for which there is no consideration other than the presumed consideration imported by the deed;(d)a contract intended to operate by way of mortgage, pledge, charge or other security.(3) For the purposes of this Act, a contract is a contract for the transfer of goods whether or not services are also provided or to be provided under the contract, and, subject to subsection (2), whatever is the nature of the consideration for the transfer or agreement to transfer. In this Act,
In a contract for the transfer of goods, other than one to which subsection (3) applies, there is also an implied warranty that —
the goods are free, and will remain free until the time when the property is to be transferred, from any charge or encumbrance not disclosed or known to the transferee before the contract is made; and
the transferee will enjoy quiet possession of the goods except so far as it may be disturbed by the owner or other person entitled to the benefit of any charge or encumbrance so disclosed or known.
This subsection applies to a contract for the transfer of goods in the case of which there appears from the contract or is to be inferred from its circumstances an intention that the transferor should transfer only such title as he or a third person may have.
transferor
“transferor”, in relation to a contract for the transfer of goods, means (depending on the context) a person who transfers the property in the goods under the contract, or a person who agrees to do so, or a person to whom the duties under the contract of either of those persons have passed.
In a contract to which subsection (3) applies, there is an implied warranty that all charges or encumbrances known to the transferor and not known to the transferee have been disclosed to the transferee before the contract is made.
transferee
“transferee”, in relation to a contract for the transfer of goods, means (depending on the context) a person to whom the property in the goods is transferred under the contract, or a person to whom the property is to be so transferred, or a person to whom the rights under the contract of either of those persons have passed;
In a contract to which subsection (3) applies, there is also an implied warranty that none of the following will disturb the transferee’s quiet possession of the goods, namely:
goods
“goods” includes all personal chattels (including emblements, industrial growing crops, and things attached to or forming part of the land which are agreed to be severed before the transfer or bailment concerned or under the contract concerned) other than things in action and money;
the transferor;
in a case where the parties to the contract intend that the transferor should transfer only such title as a third person may have, that person;
anyone claiming through or under the transferor or that third person otherwise than under a charge or encumbrance disclosed or known to the transferee before the contract is made.