Vous êtes sur la page 1sur 28

LAW OF PURCHASE AND SALE

DEFINITIONS:

1. Purchase and Sale is an agreement to make over to another a certain thing for a certain price.
(by Van Der Linden)
2. Under our Zimbabwean Law, Sale is defined as an agreement or contract in which one person
promises to deliver a thing to another who in his part promises to pay a certain price. (Christie)

ESSENTIALS OF A CONTRACT OF PURCHASE AND SALE

In addition to the basic essentials of a general contract, the following are found to be in operation to
Purchase and Sale Contract.

(1). AGREEMENT

There must be a union of two minds in one direction i.e. consensus ad idem. A mutual assent or
agreement of the parties should be firm. That is, the buyer must intent to buy and the seller must intend
to sell. Therefore, parties must be in a complete agreement.

Case: OK Bazaars Vs Bloch

(2). MERX/RES VENDITAE/THING

There must be a merx or subject matter of the contract.

(a). Certain things cannot be sold

(i). The right of inheritance to a person still living. Any sale of such inheritance to a third party is void as
it is contrary to public policy but a right of inheritance to a person already dead may be bought or sold .

(ii). Public Property. Frequently may not be alienated anyhow by the public authority controlling it and
may not be sold.

(iii). Res extra commercium. These are things which are incapable of being appropriated or ascertainable
and thus incapable of being owned, eg. air

(iv). Res Nullis. These are things which are incapable of being owned, eg birds and wild animals unless
they are tamed.

(v). things inherited under a will containing prohibition against their alienation can not be sold unless a
relief is granted against the provision of will by the court.

(vi). Things which are being administered by the person in a fiduciary capacity may not be bought by
him, unless in a bona fide manner as a public auction or under an order of court, eg. Property
administered by the executor of the deceased estate, an agent may not purchase property entrusted to
him, partner may not purchase property falling within the scope of the partnership.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 1
(vii). Poisons, intoxicating liquor, firearms and ammunition are sold under restrictions imposed by the
statute and cannot be sold generally.

(b). Non existing things cannot be sold.

Where it is assumed in the contract that the merx was supposed to be in actual existence, then if it was
not in existence when the sale was concluded, then the sale is void.

(c ). Future goods not yet in existence but whose future existence is anticipated may be sold.

These are divided into two:

(i). Where there is a sale of the hope of a thing known as Spei. In such a case the purchaser is taking a
gamble on the thing coming to existence and he is bound to fulfill his part of the contract i.e. pay the
purchase price whether or not his hope materializes. This is known as Res emptio Spei.

(ii). Where there is a sale of a thing, which although does not exist at the time of sale (out of stock) to
the knowledge of both parties, must come into existence later, the sale must materialize. It is called Res
emptio Speratta.

(d). Stolen property and property belonging to third parties can be sold.

It seems strange to think that stolen property held by a person who is not the owner can validly be
bought and sold for the seller is to guarantee the purchaser free and undisturbed possession of thing
(vacua possession). If the seller is not the true owner of the thing sold, the true owner can claim back his
property from the buyer even after the sale by vindicatory action. The buyer of the stolen property has
no case against the true owner but he can get a remedy from the seller plus the purchase price.

(e). Merx or thing must be ascertainable i.e. things to be sold must be certain.

(3). PRICE/PRETIUM

There can be no valid sale unless, there is price. Numerous sales occurs everyday which at first sight do
not seem to conform to this essential eg. D enters a restaurant and orders a meal without asking what it
will cost, he has to pay for it when he is notified of the price for there has been a valid sale even though
no price has been fixed.

Characteristics of Price:

(a). Price must consist of current money, e.g. if D and E agree that D shall sell his white horse to E and D
her black car then there is no sale. This is a contract of exchange.

(b). Price must be a sum certain.ie parties may agree that the price maybe fixed by a third party for the
price is ascertainable when the third party actually fixes it hence price can be fixed at a future date.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 2
(c). Price must be real.ie. it should be proportionate to the value of article being sold.

(4). DELIVERY

Finally, for ownership to pass, the correct form of delivery must have occurred. There are four main
classes of delivery namely;

(a). Actual Delivery

That is the actual physical movement of the corporeal movable property sold from one person to
another.

(b). Constructive/Fictitious Delivery

(i). Symbolical Delivery

This method of delivery is lest illustrated where the seller hands to the purchaser the means of control
of the property, the seller handing, over keys of a warehouse containing the sold movable property or
by the seller handing the purchaser a bill of lading of sold movable in transit.

Case: Randalease Finance (Pvt) Ltd Vs Corporation de Mercadeo Agricola. (1976)

(ii). Traditio Longa Manu; i.e. Delivery with the long hand.

Because of the bulk or size of the sold property, it is inconvenient to deliver the goods sold physically,
the seller gives the buyer effective control by pointing the property authorizing him to deal with it.

Case: Xapa Vs Ntsoko (1919). The case concerning cattle for lobola, the cattle being pointed out by one
party to the other.

(iii). Traditio Brevi Manu; i.e. Delivery with the short hand

As where the property is already in the possession of the purchaser, and delivery is effected by an
agreement between the parties that the delivery should retain the property on his own behalf.

Case: Assignees of O’ Callaghan Vs Cavanaugh (1883)

(iv). Atornment

As where an agent having custody of property for the seller, on receiving proper instructions, become a
custodian of the goods for a third person, the purchaser.

Case: Hearn and Co. Vs Bleiman (1950)

It is an essential requirement of this method of delivery that the custodian retain possession through-
out.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 3
(v). Constitutum Possessorium

As where the purchaser buys a watch from a jeweler but leaves it with the jeweler, the seller, for the
strap of the watch to be substituted for with another strap and it being further agreed that ownership of
the watch should pass to the purchaser. This method of delivery was upheld as a valid and reasonable
method of effective delivery of ownership in the SA case of Boland Bank Bpk Ltd Vs Van and another
(1946)

(C ). Registration

Delivery is effected through the registration of the buyer’s name of immovable property sold against
title deeds at the deeds registry office.

(D). Cession

In case of incorporeal property eg shares in a company, delivery is effected through cession of the
incorporeal property sold i.e. transferring and registration of the shares.

Differences between SALE and EXPROPRIATION

Expropriation is the dispossessing of an owner or somebody ‘s private property for the use of
the public under lawful authority granted by the legislature. Expropriation is not real sale.

Differences between SALE and EXCHANGE

If the price consists of any valuable property other than money the contract would be to
exchange.

Case: In rand water board Vs The Receiver of revenue

Facts

The court was called upon to decide if there was a contact of sale where the parties had
agreed that the price should be a number of shares in a company.

Held

The court held that shares are not money and the contract was therefore one of exchange and
not sale.

N.B The real difficulty arises where the purchase price is partly in money and partly in
something else. If the parties intended it to be an exchange, then it is a contract of exchange. If
the intention is not ascertainable the contract is one of sale if the money element predominates
and the exchange if it does not.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 4
PASSING OF RISK

What is risk?.

Risk comprises the deterioration and distraction of the merx or it embraces the total loss or
damage of the property sold. Risk includes disadvantages such as increased duties and taxes and
other burdens. It also includes advantages accruing to the property i.e. rents, fruits , accessories,
dividends and other profits flowing from the property sold. e.g. if a cow is sold and the cow
calves before delivery, the purchaser is entitled to the cow as well as the calf both of which
must be delivered .This rule is of particular importance with reference to the sale of buildings,
thus all rents and taxes accruing between the date of sale and the date of sale and the date of
transfer have to be borne by the purchaser.

N.B Risk means the liability to bear.

Basic Rule regarding the Passing of Risk

The General Rule is that as soon as the contract of sale is completed the risk passes to the
purchaser quite independently of when delivery is to be made to him.

Exceptions to the general rule:

(i). Res fungibles (unascertained goods).

(ii). where the seller is in mora.

(iii). where the sale is subjected to suspensive condition.

(iv).where there has been express or implied agreements varying the general rule.

(v). Negligence of the seller.

1. Res Fungibles

The rule does not apply to unascertained goods until answering the contract description have been
appropriated. Res Fungibles are goods that need to be weighed, measured, counted, appropriated or
ascertained by the seller before delivery. Risk passes only when the goods have been measured or
counted to the purchasers benefit.

Case: Taylor and Company Vs Mckie Dunn and Company

Facts

The buyers ordered 50 hedgehogs of brand. The seller measured the brand and placed it in second hand
cases in accordance with the buyer’s instructions and marked off the cases with the buyers’ name. The
next day an act imposing an excise duty on the brand was imposed.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 5
Held

It was held that risk had passed to the purchasers since the brand had clearly been appropriated and
that the purchasers had to pay the duty.

Case: Poppe Schunhoff and Guttery Vs Mosenthol and Co.

Facts

The buyers bought 600 hedgehogs of brand but the Act of imposing excise duty came into force the 600
hogs had been measured out.

Held

It was held that there had not been appropriated to the buyers and that the risk was on the sellers who
had to pay the duty.

NB: where res fungibles are sold as a lot, however, the risk passes to the buyers immediately the
contract is concluded.

2.Seller in Mora

The rule does not apply if the seller has defaulted i.e. in mora or is late in making delivery when delivery
is due and the merx is destroyed or damaged while in his possession. The risk is on him for the loss or
damage would not have occurred had he delivered the merx at the proper time. The risk that passed to
the buyer immediately on conclusion of the contract reverts to the seller.

3.Sales subject to Suspensive condition

A suspensive condition is an agreement that ownership will not pass to the buyers until the condition is
fulfilled. This is the case with Hire Purchase agreements where ownership is only to pass upon paying
the last installment. The effect of the suspensive condition is to prevent conclusion of the contract itself
until the condition is fulfilled.

NB: In F.O.R sales delivery to the agent of the seller does not necessary mean delivery to the buyer but
delivery to the agent of the agent of buyer constitutes delivery to the buyer and risk passes.

Case: Quirk’s Trustees Vs Assignees of Liddle and Company.

Facts

Liddle’s assignees sold furniture, fittings and stock of a hotel to Quirk for $650, “Quirk to give bills at 3,
6, 9 and 12 months. Property in goods to pass to Quirk only upon payment of last bill”.

The goods were delivered to, who having given no bills and paid no part of the price, thereafter
surrendered his estate. Quirk’s Trustees and Liddle’s assignees both claimed the goods.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 6
Held

The goods belonged to Liddle’s assignees because the condition meant no more than that there should
be no sale until the last installment was paid. This condition has admittedly not been performed by the
purchaser, and the result is that the ownership of the goods has not vested in the plaintiffs, as the
trustees of the purchaser’s insolvent estate.

Case: Jacobs Vs Petersen and another

Held

Risk remained with Jacobs.

4.Express/implied agreement varying the rule.

In certain circumstances agreement to vary the rule may be implied on the facts but generally speaking
there must be an express warranty which is reasonable, deducing that the seller undertakes
responsibility for the existence of the article and risk will not pass to the buyer.

5.Negligence of the Seller.

The seller has a major duty to care for the purchased merx of the buyer which are still in his possession
for risk to remain with the buyer. Risk reverts to the seller when he failed to exercise carefulness,
therefore he/she is still treated as having committed negligence, and risk reverts to him/her.

PASSING OF OWNERSHIP

Definition of Ownership

Ownership is the sum of all possible rights in a thing.

The General Rule is that ownership passes the moment the price is paid or credit given and delivery
effected. In the case of immovable property, it passes on registration in the Deeds Office and for
incorporeal property is passed by cession.

The concept of ownership

Ownership embraces the power to use, alter, destroy or alienate the thing concerned, to enjoy the fruits
thereof, to prevent others from using it and to transfer rights to the thing, eg in respect of its use, to
other (i.e. provided his conduct is not contrary to statutory provisions and does not interfere with the
rights of others)

Consequently, it is perhaps preferable to say that the right of ownership confers on the owner of a thing
the power to do with his thing as he deems fit, subject only to the limitations imposed by public and
private law.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 7
Conditions necessary to pass ownership

(1). The thing (merx) must be legally capable of being owned

(2). The Seller must be legally competent to sell.

(3). The delivery must be made by the owner of the thing (merx) or by the Agent who is expressly or
impliedly authorized to sell.

(4).The seller must be owner other wise ownership would not pass to the purchaser:

(a). a thing that belongs to a person cannot be transferred without his own act.

(b). One cannot transfer to another a greater right than he himself has.

NB: The true owner is entitled to recover the thing from the purchaser to whom it has been delivered by
vindicatory action.

Exceptions that the Seller must be the owner.

(i). Property sold in execution or in order of court or by a sheriff/messenger of court cannot be followed
by the true owner against bona fide purchaser.

(ii). The rule does not apply to money or negotiable instruments, which cannot be vindicated by the true
owner. The reason being that if a true owner could vindicate stolen money our whole commercial
system would be upset.

(iii). Stolen property bought in an ordinary municipality market through public auction.

(5). There must be serious intention on the part of the seller to pass ownership and the buyer to receive.

(6). Buyer must be legally competent to buy.

ACQUISITION/WAYS OF PASSING OWNERSHIP

Ownership is acquired either through the Original ways or Derivative ways.

(1). The Original Acquisition of Ownership

In this case of original acquisition the acquirer does not derive his/her title from that of a predecessor
and his title is consequently also not affected by infirmities in the title of a predecessor.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 8
(i). Accession

Is a method of acquiring a real right by a person in anything by virtue of its being added to or
incorporated with another thing belonging to that person which he/she has bought. This can be done
through natural or industrial means. Natural accession is due to the action of nature e.g. a cow which
calves after sale but still in the possession of the seller, while Industrial accession is the conversion of
two or more separate things into one entity e.g. permanent attachment of a building to land or mixing
of substances, weaving, writing, and painting.

(ii). Specification

Acquisition of ownership by specification takes place by the working up of a thing (belonging to another)
into a new product or by giving off a new form to or the manufacture of a new species out of the
material of another that has been bought, provided the material used ceased to exist as such and
cannot be restored to its original form.

(iii). Acquisitive Prescription.

It denotes a process/action by which real rights are acquired through the possession by one person of
another person’s movable or immovable property for an uninterrupted period of 30 years in order to
recover a debt.

(iv). Commixtio (Ex confusion)

It is about mixing of liquids, including metals which are melted together, and the mingling of solids that
has been bought.

(2). Derivative acquisition of ownership

It is a method of acquiring a real right by a person in a thing by deriving his title from that of predecessor
and his title is consequently affected by infirmities in the title of predecessor.

(i). Registration

Ownership of immovable things bought is transferred by registration through the Registrar’s office. E.g.
land.

(ii).Delivery of movables.

The delivery must place the transferee in a position where he can effectively exercise the particular real
right which is supposed to have been transferred to him. Movables are transferred by actual delivery or
by constructive delivery (fictitious delivery). Constructive delivery can take 5 forms i.e. delivery Brevi
manu, Delivery Longa manu, Symbolical delivery, Constitutum Possessorium, and Atornment.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 9
(iii). Expropriation

Ownership and other real rights can be transferred in certain statutes by expropriation when the
consent of the owner is not a requirement. If the state wishes to use a person’s land for a particular
purpose it maybe authorized by a statute to take transfer of land on payment of adequate
compensation. There must be an intention to register transfer if the documents are in order e.g. Farm
takeover by blacks.

(iv). Tax Sale

If taxes on real property are not paid, they become a lien on that property. If the taxes are still unpaid,
after a specified period, the Government body involved can sell the property at a tax sale. The purchaser
at such a sale acquires a valid title to the property, and the money paid is applied to the back taxes.

DUTIES OF THE SELLER

When a contract of sale has been formed, each of the parties acquires certain rights and incurs certain
obligations towards the other party. When we discuss the duties of the seller we are dealing with the
rights of the purchaser hence rights and obligations are reciprocal terms.

(1). Preserve the merx until delivery

(2). To deliver the merx

(3). Warranty the Purchaser against eviction

(4). Guarantee the merx as free from latent defects.

1. Preserve the Merx until Delivery

As soon as the sale is completed, there is a duty of care thrown on the seller and he must not allow it to
be damaged or deteriorated in value through his own fault for he is liable for any loss caused by his
willful acts and gross negligence.

(i). where delivery has not become due, the seller must show standard of care and diligence for he is
liable for any loss.

(ii). where delivery has become overdue through the default of the buyer to accept delivery there is no
longer any duty upon the seller to preserve the merx for the seller will not be liable but he will be liable
for willful acts or gross negligence.

2.To deliver the Merx (Res Venditae)

The seller must deliver in accordance with the following rules:

(a). seller has to deliver the res Venditae in the condition it was at the time of the sale i.e. with all its
accessories.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 10
Case: Cedanmout Store Vs Webster and Company

Facts

Where 40 bags of mealies out of 400 were below standard.

Held

The purchaser was entitled to apply for rescission.

(b). In the absence of express agreement to the contract, the seller must deliver all fruits that have
exceeded to the property. This is in accordance with the rule regarding RISK. Thus all advantages and
disadvantages pass to the buyer.

(c ). If there are goods unascertained at the time of the contract the seller must appropriate then before
delivery.

(d). the seller must deliver at the proper time and place agreed in the contract.

(e). Delivery must be such as entitled buyer to undisturbed possession, i.e. Vacua Possessio.

(f). seller must deliver in accordance with what was agreed as to size, quantity, quality and other
qualifications.

Remedies available to the Buyer if the Seller fails to Deliver.

(i). The buyer can claim specific performance

(ii). The buyer can claim cancellation plus damages

(iii). The buyer can claim a refund of the price and damages with interests when he cancels.

NB: measures of damages which the buyer can claim for non-delivery.

 Actual Damages.
Measured by deducting the purchase price from the current price in the open market of similar
goods. If there is no such market damages are measured according to the nearest open market
or even at the current world price. Failing these, damages are based on the market price of the
best available substitute.

 Potential Damages
Consist of the loss of profits which would have been accrued had the sale taken place. The
purchaser is entitled to such loss of profits if he proves that he required the goods for a special
purpose and that he lost profits as a result of non-delivery.

Divisible contract/delivery by installment

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 11
A contract is divisible when the contract as a whole can be sub-divisible into a number of small separate
contracts. It does not necessarily mean that the merx itself must be divisible. It sometimes happens that
the seller has to deliver in installment. In such a case, what happens if the seller fails to deliver one
installment?. The answer will depend on whether or not the contract is divisible. If it is divisible the
buyer cannot repudiate but must accept future installment. But if contract is indivisible, then he can
repudiate.

Case: Horwitz Vs Hayne

Facts

300 bags of maize were sold, delivery to be made at the rate of 100 bags per month and delivery was
not done as per agreement. One party sued the other for failure to deliver.

Held

It was held that the contract was divisible and that failure to deliver the first installment did not entitle
the buyer to refuse to accept later installments.

3.Seller must warrant purchaser against Eviction.

The purchaser must enjoy undisturbed and free possession of the merx (vacua Possessio).

Eviction in the sense it is used here, means having your use of the merx disturbed in some way. The
seller guarantees not to disturb the buyer and to protect the buyer against any legal attempt to evict
him. If the buyer is evicted, the seller must compensate. However, the buyer must notify the seller of
any threat to his possession and must not just handover the goods to anyone claiming them. we say
they must defend prudently.

The seller guarantees the purchaser that:

(i). The seller will not himself disturb the buyer in his peaceful possession.

(ii).The seller will defend the buyer against any third person in any legal attempt to evict him

(iii). In the event of him failing to defend the buyer from that person he will himself indemnify, buyer for
the loss he suffered by reason of the eviction.

The warranty will not be applied in the following cases:

(i).If the parties expressly agree that the seller will not be liable should the buyer be evicted.

(ii). if the buyer is aware that a third party is the owner.

(iii).if the cause of eviction arises after the sale and the seller is not fraudulent.

(iv). If the eviction is not by legal right.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 12
(v). By cause of vis major.

4.The Seller must guarantee the merx from latent defects

Latent defects are hidden flaws in the article, which are not readily apparent at the time it was sold, i.e.
they are defects which on a reasonable inspection are just as likely to be overlooked.

The warrant against latent defects is implied in all contract of sale without express agreement between
the parties. However, Patent defects are not guaranteed since they are easily seen by the parties and
negotiations are done before they contract.

The General Rule is that, it is an implied duty of the seller to guarantee the merx being sold to be free
from latent defects.

Exceptions (circumstances under which the seller is not liable or responsible for latent defects)

(i). Sale voetstoots

Where the seller expressly contracts out of the liability the goods are sold free from implied and express
warranty. Voetstoots means articles are sold as they stand or with all faults.

Case: Crawley Vs Frank pepper (Pvt )Ltd

Facts

An auctioneer sold certain pigs by public auction to the Plaintiff. In terms of the “conditions of sale” the
pigs were sold Voetstoots, but the Plaintiff had not heard the conditions read out or any announcement
to this effect. A number of pigs were found to be latently defective.

Held

The Plaintiff must be taken to have assented to the conditions of sale as he was a buyer at a public
auction. The sale was, therefore, voetstoots and the Plaintiff had no remedy.

(ii). if the defect does not exist at the time of the sale but supervened subsequently.

NB: The onus is always on the buyer to prove that the defect existed at the time of the sale. Otherwise
the ordinary rule as to the passing of the thing sold applies and the loss falls on the buyer.

(iii). Where the buyer is aware of the defect at the defect at the time of the sale or becomes aware
subsequently and expressly or impliedly accepts the position. He is taken to have waived his rights
against the seller in respect of that defect.

(iv). If there are Patent defects.

NB: The caveat emptio applies. (let the buyer be aware)

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 13
(v). if the sale is subject to a suspensive condition and the condition has not yet been fulfilled – the
buyer has no remedy.

(vi). In sale under Judicial authority such as by the Deputy Sheriff or Messenger of court or by a trustee
in an Insolvent estate. The aedilition remedies are not available should the merx prove to be latently
defective.

Conditions concerning delivery of defective goods:

The Sale of goods state that:

(i). Goods must be as described by the seller.

The goods must match any sample that the buyer would have been shown in the shop or in a brochure.
There must be no differences from colour, size and any features.

(ii). Goods must be fit for purpose.

Goods must be fit for any purpose as agreed between the seller and the buyer. This means that they
must be able to perform both their everyday purpose and also any specific purpose that the buyer
agreed with the seller.

(iii). Goods must be of satisfactory quality.

The goods must be of satisfactory quality at law not on delivery but for a reasonable time thereafter.
Goods are of satisfactory quality if meet the standard which a reasonable buyer would regard as
satisfactory, taking into account of any description of goods, the price, product material and any other
relevant circumstances.

(iv). The Seller must have a return policy. Before the sale contract is concluded, the seller must give to
the buyer information about the company’s goods return policy. That is if the company accept any
returns when the buyer discovers that the purchased goods has some defects and the kind of remedies
that are given thereof.

(v). The seller must guarantee the products.

The seller must give his commitment to repair, replace or refund on goods which do not meet the
specifications in the guarantee.

TO CLAIM UNDER THIS WARRANTY THE BUYER MUST ALLEGE AND PROVE THE FOLLOWING THINGS:

(i). That the defect was latent.

A defect which is not latent is said to be patent, i.e. open for all to see. The purchaser must show that he
could not on a reasonable inspection of the merx at the time of the sale have readily noticed it but if
defect is patent, i.e. on a reasonable inspection/examination it should obviously be seen by the buyer,
the seller is protected by the maxim “Caveat emptio” (let the buyer be aware).

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 14
Case: Zieve Vs Vesta and Company

Facts

Measles in pigs were held to be latent defects as it was held that a purchaser of animals was not bound
to apply a cruel test to satisfy himself that the animals were free from disease.

Case: Gold Blatt Vs Sweeney

Facts

It was held that a welded crankshaft in a motor car was a latent defect. The learned judge stating that
the welded crankshaft appeared to him to be just the kind of defect that ought to have been disclosed.

(ii).That the defect was such as to destroy or impair the usefulness of the merx for the purpose for which
things of that kind are ordinarily used.

Case: Kroomer Vs Hess and Company

Facts

The purchaser ordered monkey-nuts and the seller knew that the nuts had been ordered for human
consumption. The seller delivered nuts that were unfit to be eaten although use could have been made
for other purposes such as the manufacturing of oil.

Held

It was held that since the nuts were unfits for the purpose for which they were sold, they were latently
defective.

NB: If goods are ordered from a manufacturer for a particular purpose known to the vendor, there is
implied warranty that they shall be fit for that purpose but if an article of a definite nature is ordered,
the manufacturer warrants no more than the article supplied is as fit as answering to the description of
the order and the seller is not liable if the goods are unsuitable.

Case: Hall and Company Vs Kearns

Facts

Hall order from Kearns a one horse gas engine in order to supply motive power for grinding coffee.
Kearns who was not a manufacturer supplied an engine answering in every respect to this description
and Hall paid for it. After putting the engine into use he found that it did not work properly owing to the
insufficiency of the gas pressure in Cape Town where the engine was used. Both parties had known at
the time of the sale that the engine was to be used in Cape Town but it was clear that no engine of the
description ordered would have worked any better than the one supplied with the pressure in Cape
Town.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 15
Held
The fact that a specific engine of a specific manufacturer was ordered nullified the rule that the engine
supplied had to be fit for the purpose for which the parties knew if was to be used. Kearns had supplied
an engine suitable for the purpose hence not liable.

(iii). That the defect was present at the time of the sale.

(iv). The defect was not known of it.

(v). The Purchaser would not have purchased the product if he/she was aware of the defect.

(vi). The Purchaser is willing and able to be restituted.

Rights where the Buyer is entitled to claim for the supply of defective goods.

(i). when a person enters into a distance contract when one enters into a distance contract when one
enters into a distance contract with the seller (without face to face) such as online contracts, catalogue
and telephone to buy goods. So one is entitled to a cooling off period and can return the products even
if he/she has changed his/her mind.

(ii). Off-premises contracts

When a person enters into an off -premise contract such as the one where you buy goods in your home
or at the work place.

(iii).When excessive fees are charged.

Under the consumer rights where traders are banned from charging fees to consumers that are
excessive for using payment methods such as debit cards and credit cards.

REMEDIES FOR THE PURCHASER IF THE GOODS ARE LATENTLY DEFECTIVE

The following are the remedies (Aedilition Remedies)

(i). Actio Redhibitoria

(ii). Actio Quanti-minoris

(iii) Actio ex emptio

(1).Actio Redhibitoria

This is an action for setting aside the contract with no damages claimed. What the purchaser claims is
the payment of the purchase price against the return of the merx. This is only available to the buyer if
the defect is a material one to render the property totally unfit for the purpose of which it was bought.
The test for materiality is objective.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 16
Circumstances where the purchaser avail him/herself of this remedy (Actio Redhibitoria)

The following are situations where the buyer cannot claim rescission under the Actio Redhibitoria but is
restricted to Actio Quanti- minoris.

(i). Where the merx has been destroyed or materially damaged after delivery through the purchaser’s
negligence.

NB: But if the merx has become destroyed as a result of the latent defect from no fault of the purchaser
then the purchaser does not lose the remedy of rescission though he cannot restore the status quo.

Case: Mark’s Ltd Vs Laughton

Facts

A buyer of eggs finding them unfit for consumption and allowing them to be destroyed in accordance
with the local by laws.

Held

The buyer was entitled to rescission

NB: Where the merx has become destroyed by the defect but there is something that may be of some
value left then the purchaser should return what is left.

Example: where a beast suffering from a latent defect has died from causes outside the purchaser’s
control the purchaser must return the skin and horns where the merx has become entirely worthless
through no fault of the purchaser then it is unnecessary for him to return anything.

Case: Dodd Vs Spitaleri

Facts

Dodd sold Spitaleri a horse, which was subsequently found to be suffering from a borne disease of long
standing. Spitaleri called a veterinary surgeon who advised him that the disease was incurable and that
the animal should be destroyed. The disease was existing at the time of sale but could have been
detected only by a veterinary surgeon. Spitaleri had the horse destroyed and Spitaleri sued for the
return of the purchase price. Dodd maintained that Spitaleri should not have had the horse destroyed
but should have returned it in its diseased condition.

Held

Spitaleri was entitled to succeed because the disease rendered utterly worthless and there was no
obligation to return the merx when it is worth nothing at all.

(ii). if the purchaser has used the merx that he is unable to return it in the condition it was when
delivered.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 17
He cannot claim under Actio Redhibitoria. This is because he can not restore the status quo.

Case: Gold Blatt Vs Sweeney

(iii). If the purchaser has sold the merx after he has discovered the defect he cannot claim rescission.

Such sales amount to waiver of his right because the purchaser makes it impossible for him to restore
the merx.

(iv). If a purchaser who had discovered the defect returns the merx for such a length of time that tacit
acceptance of it is interfered.

He cannot claim the rescission for the purchaser must in all cases inform the seller of the defect as soon
as possible after he has discovered it otherwise his retention of the merx will amount to tacit
acceptance and will lose the Actio Redhibitoria.

Case: Meinties and Dickson Vs Deare and Dietz

Facts

Delivery of gunpowder took place on the 31st of January, on the 21st February and again on the 30th
March. Some of the gunpowder was found to be bad and not merchantable. The purchaser sued for a
return of the articles in May.

Held

It was held that they must fail as their delay after discovery of the defect showed their intention to
retain.

2.Actio Quanti Minoris

This lies in favour of the purchaser for a reduction in the purchase price proportionate to the defects
discovered. Literally it would mean an Actio for a less amount. The Actio Quanti Minoris entitles the
purchaser where a latent defect is not vital but nevertheless has reduced the value of the thing sold. The
essence of the remedy is proved by the purchaser that the goods delivered are as a result of the latent
defect worthless than what he actually paid for, therefore, the buyer is claiming the difference between
the purchase price and the actual value of the goods in the defective form. The buyer retains the goods
for other use.

3.Actio Ex Emptio

In exceptional case damages may be claimed under the Actio Ex Emptio for latent defects. This action is
available where the buyer has been defrauded into entering into a contract as a result of false
representation. Ex emptio is the rescission of the contract and repayment of the purchase price against
return of the thing sold with or without an additional claim for damages. But damages are claimed for
breach of contract.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 18
(i). Where the seller is the manufacturing of the goods or a dealer who publicly profess to have
attributes of skill and expert knowledge in relation to the kinds of goods sold and buyer is defrauded
into entering into the contract.

Case: Odendal Vs Bethlehem

Facts

Odendal bought from Bethlehem a dealer dealing almost exclusively in the sale of feed, a quantity of
fine borne-meal expressly for the purpose of cattle feed. The borne-meal was unknown to either
Odendal or Bethlehem that it contained anthrax germs. As a result of eating the meal, 13 of Odendal’s
cows died. Odendal sued for the recovery of the value of the cows from Bethlehem.

Held

Odendal was entitled to full compensation.

OR:

Case: Lockie Vs Wightman and Co.Ltd

Facts

Lockie bought certain fodder from Wightman who was a dealer. Lockie fed the fodder to certain
racehorses, one of which died. On post morten examination the cause of death was found to be
arsenical poisoning. The cause of the arsenic was traced to the fodder sold by Wightman. Wightman was
unaware of the contamination. Lockie sued for damages for the loss of the horse.

Held

Wightman must be held liable to make reparation for the loss suffered by Lockie defect and the merx
has latent defects, the buyer can claim rescission plus damages.

Can the buyer rescind the whole sale where one of several articles are defective?

If there is a principal object in the sale and the other articles are accessories, then if the principal object
is defective, the purchaser can apply for rescission of the whole contract but if the accessories are
defective then the buyer is entitled to rescission as regards accessories.

Example: if a horse and its harness are sold and the horse proves defective, the purchaser is entitled to
rescission of the whole contract but if the harness are to prove defective and not the horse, then he
could apply for rescission of the harness only.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 19
If the articles do not consist of a number of accessories then the test is whether the articles together
from such a unit that they would have been bought separates it. If this is the case and one of the
articles prove to be defective then the purchaser is entitled to rescission of the articles in question.

Example: if a team of four horses to pull a carriage were purchased and one of them proved to be
defective, the purchaser could rescind the whole contract of sale whereas if a purchaser bought a racing
state and one of the horses in the stable proved to be defective, he could rescind the sale as regards one
horse only.

There are other protections of the buyer when buying defective goods:

(i). If one buy something from someone who does not own it, a buyer has the right to get his money
back from the seller.

(ii).The goods must match their description on labels or claims made by the seller must be accurate.

(iii). Goods sold in the course of business must be of satisfactory quality.

(iv). The contract should reflect what has been agreed in terms of Specification of the product being
sold, details of price, payment date if the product is sold on credit, payment date and deliver.

(v). If the buyer is unhappy with any of the terms or conditions, do not agree to them.

(vi).When buying, the buyer should protect his/her rights under implied terms, that is the buyer is
allowed to ask for detailed product specifications.

DUTIES OF THE BUYER

(i). Payment of the price

(ii). Reimbursement of the seller for his necessary expenses

(iii). Acceptance of delivery

(iv). To comply with other obligations.

(1). Payment of the price

As we have seen in cash sale, delivery and payment should take place simultaneously. If it is a credit
sale, purchaser is not obliged to pay the price until the period for which credit has been allowed has
expired although he has, in the meantime received delivery.

Payment in Sales of Immovable’s

In sales of immovable property if the buyer is to be given credit for the purchase price a bond to secure
the price is passed by the buyer in favour of the seller.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 20
Simultaneously with the registration of the transfer into the buyer’s name. if the immovable property is
sold for cash then the price must be paid concurrently with the registration of transfer into the buyer’s
name.

Payment of installments

If the price is payable by installments, the purchase can not demand delivery with all the installments
have been paid unless the contract provides otherwise.

(2). Buyer must pay necessary expenses

The buyer must pay or reimburse all the expenses of the seller necessary to preserve the merx between
the time of the sale and delivery of the merx. The seller should account to the buyer for the fruits of the
merx from date of sale and reasonable cost or charges such as repair, taxes, warehousing etc.

(3). Acceptance of delivery by buyer

There is duty upon the buyer to accept delivery of merx. The question arises however whether the buyer
must accept delivery of goods, part of which fall below contract standard. The question depends upon
whether the contract may be regarded as divisible or indivisible.

Case: Leclus (Pvt) Ltd Vs Pointing

Facts

Pointing gave an order for one gross of Paul Kruger series Christmas cards. When these were delivered
he found that they were not Paul Kruger series and therefore did not come up to the contract standard.
He decided however to retain four and half (4 ½) dozen and returned the rest when he was sued for the
purchase price of the whole gross.

Held

The court held that he was liable because the sale was an indivisible one and by accepting part of the
order he bound himself to pay for the lot.

(4). To comply with other obligations.

The purchaser must also comply with any further obligations imposed upon him in terms of the sale
contract. where, however, the purchaser rejects goods sent to him by the seller as not being in
accordance with the contract, not only is he not obliged to return the goods, but he is entitled to charge
the seller for storage.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 21
SPECIAL SALES

Special sales are types of sales when the parties to a contract vary and modify implied terms and
conditions, substituting their own terms and conditions in particular situations.

Once a contract of sale has been perfected the parties need not agree on any further terms or
conditions specifying the time and place of delivery, payment or the quality of the goods because these
terms and conditions are implied or imported into the contract by operation of law. Nevertheless, the
parties may expressly or impliedly vary these terms and conditions as they wish by means of terms or
conditions of their own, provided these are not illegal. For instance while the law implies that the seller
of immovable property must pay the cost of transfer of the property to the buyer, this obligation is
invariably imposed on the purchaser by agreement.

(1).Sale by Sample.

An agreement that a quantity of goods sold shall correspond in quality with a particular specimen
displayed at the time of the contract: Bouwer Vs Ferguson (1884). An agreement must necessarily
warranty that the specimen displayed corresponds in quality with the goods sold, so that if the goods
being sold can themselves be inspected, the adjacent display of some of the goods does not, in the
absence of fraud, constitute a sale by sample, and does not therefore amount to a warrant express or
implied, that all the goods are of that quality

Case: Wilmot V. Sutherland (1914).

Facts

The facts of this case are that W bought 200 bundles of forage from S on the public market. At the time
of the sale the forage was part of the load of S’s wagon and the load was freely open to inspection by
intending buyers. But S had placed two or three bundles on the ground at the back of the wagon. After
deliver y W discovered that the forage was musty and unfit for fodder.

Held

In an action instituted by W for the refund of the purchase price and certain damages, the sale was not
by sample, not was there any warranty express or implied as to the quality of the forage. W therefore
failed in his action, the court applying the maxim caveat emptor.(let the buyer beware)

NB: Puffery does not amount express warranty

Puffery usually arises in cases where goods are exhibited as advertisements where a shopkeeper
exhibits goods in his window for sale. This is more puffery and goods displayed in window are not
sample and should a customer enter the shop and purchase goods as exhibited in the window, there is
no warranty that the goods he actually buys will conform to the quality of those displayed in the
window.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 22
(2). Sale by Description

A sale of unascertained goods in which the parties agree that the goods sold will be of a particular type,
eg. A sale of 1000 Kakamas peach trees. In such a case the sale amounts to a sale with an express
warranty by the seller that the goods will meet the description.

If the goods supplied and delivered meet with the contract description then the seller has discharged his
contractual obligation under the warranty. If the goods in such circumstances turn out to be latently
defective as unsuitable for the purpose bought, the buyer in ordering the seller has only warranted that
the goods will comply with the contract description.

This principle is best illustrated by the principle in;

Case: Hall and Co Vs Kearns (1893)

Facts

Hall bought from Kearns a “one-horse power Purnell gas engine” for the purpose of supplying motive
power for the grinding of coffee, a purpose for which the engine supplied was unfit. It was, however, an
engine corresponding exactly to the description of the one ordered. Hall brought an action for recovery
of the purchase price and damages.

Held

The court held, dismissing Hall’s action, that “if the plaintiff had proved that the engine actually supplied
had inherent defects which are not common to the class of engines ordered, and that it was in
consequence unfit for its uses, they would have had a firm foundation on which to rest their case. But
the evidence satisfies me that the engine supplied was a sound “one – horse Purnell gas engine”….. The
defendant ……… supplied to the plaintiffs the very article which they had ordered and cannot be made
responsible for alleged defects which are common to all articles of that class. If the defendant (seller)
represents that the described article will be fit for any particular purpose, then the principle in Hall Vs
Kearns will not apply.

(3). Sales Voetstoots

A sale is said to be voetstoots when a thing is sold expressly “as it stands” or “with all faults”. In such a
case the law implies that the seller, in the absence of fraud, is not liable for any defect in the thing:
(Case: De wet Vs Manuel 1830)

But to sell goods “Voetstoots” having knowledge of defects is a fraud in which the seller is liable to the
buyer in the action of delict: (Case: Van de Mercoe Vs Culhane 1952); nor an innocent
misrepresentation, unless words to this effect are added to the clause. (Case: Cockcroft Vs Baxter 1955).

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 23
(4). CIF (i.e. Cost Insurance, Freight) Sales

A CIF sale is one involving sea transit of goods, made at a price to cover their cost, insurance and freight
of the goods.

The obligations of the seller under CIF sales are, namely;

(a). To ship goods sold at the port of shipment in terms of the contract;

(b). To make a contract of carriage for the delivery of the goods at the agreed destination (which
includes the bill of lading evidencing the contract);

(c). To arrange insurance on behalf of the buyer;

(d). To invoice the goods to the buyer, and;

(e). To tender to the buyer as soon as is reasonably possible after shipment, the documents (i.e. the bill
of lading, the insurance policy and invoice) in a valid and effective condition.

The Bill of Lading is a document of title to the goods shipped and its delivery to the buyer is equivalent
to symbolical delivery of those goods. In consequence ownership in the goods passes to the buyer on
delivery of the bill of lading, if the buyer does not receive the goods he recovers his loss from the
insurance company: Case: Standard Bank of SA Ltd Vs Efroiken and Newman (1924).

(5). FOB (or FOR) Sales

These are merely terms of delivery in which the seller undertakes to deliver the goods on board a ship at
a named port (e.g. FOB London) (on a train at a named station in the FOR (Free On Rail).

The carrier is, in the normal course of business, the agent of the buyer and delivery of the goods to the
carrier by the seller is equivalent to delivery to the buyer sufficient for the purpose of transferring
ownership in the goods: Case: Anderson and Coltman Ltd Vs Universal Trading Co. (1948)

(6). COD Sales (Cash on Delivery)

A COD contract is an expression of the general principle that delivery and payment are concurrent
obligations. In a COD contract the buyer is entitled to a reasonable opportunity to inspect the goods
before exercising his option to reject or accept the goods: Case: Wilmot Vs Sutherland (1914).

Moreover, the buyer is not absolved, from liability to the seller by paying his agent if the money fails to
reach the seller: Case: Seider Vs Neumann (1944).

Those examples of special sales are not exhaustive but merely illustrative examples.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 24
HIRE PURCHASE

It is a type of a contract. It involves the delivery of the subject matter of the contract to the buyer, in
return for an understanding from the buyer that s/he will pay the price in installments, the seller
retaining the right to repossess or take back the property should the buyer fail to pay any of the
installments.

NB: Hire Purchase concern the sale on Installments of movable property. A contract for the sale of
immovable property (e.g. houses, farms etc) on installments is known as a DEED OF SALE and it does not
fail under the provisions of the HIRE-PURCHASE ACT.

Essential Elements Of Hire-Purchase Contract

 Sale of movable property


 The price is to be paid in two or more installments.
 The seller claims the right to repossess the property should the price not be paid.
 The agreement should be reduced to writing
 It must be signed by or on behalf of all the parties to the agreement.
 Every agreement should contain a statement of the cash price (this is the price at which the
goods may be bought outright for cash)
 It is the duty of the seller to supply copies of the agreement to the buyer.
 It is the duty of the buyer to notify the seller in writing of the changes in address prior to such
change of address.
 Removal of goods from Zimbabwe shall only be done with the consent of the seller.
 Ownership shall pass to the purchaser upon payment of all sums payable by him in terms of the
agreement.
 The initial payment consisting of a specified percentage of the price must be paid before the
goods are delivered to the buyer (this percentage is set out in a schedule of the Act).
 The period within which the purchase price is payable must not exceed that laid down in the
schedule for that particular class of goods.

The Effect of failing to comply with the Provisions

The sale is deemed to be one on credit at a price 25% less than the agreed purchase price.( this is the
total amount payable, including finance charges and interest) and at the same time, any subsidiary
contracts of suretyship, indemnity or guarantee will not be enforceable.

The limit for certain actions

No action for the return of the goods or in recovery of any portion of the purchase price may be brought
more than 730 days (in effect, two years) after the last day of the period laid down by the schedule for
payment of the full purchase price.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 25
Provisions which must not be included in Agreements

If any of the following provisions are included in any agreement, expressly or impliedly, they will be of
no force or effect.

The prohibited provisions are:

 Permission for the seller or seller’s agent to enter premises to take possession of the goods, or a
disclaimer for liability for such entry.
 Adding extra penalties to those already imposed by the Act should the buyer terminate the
agreement.
 Stating that a person acting on behalf of the seller in the formation or conclusion of the
agreement is to be treated as an agent of the buyer.
 Freeing the seller from liability for the acts or omissions of person acting on the seller’s behalf in
the formation or conclusion of an agreement.
 Agreeing that the buyer shall pay interest on arrear installment at a higher rate than that
permitted by that Act.

Conditions and Warranties Implied in Agreements

The following shall be part of every agreement, even if the parties agree to exclude them:

 An implied warranty that the buyer shall have and enjoy quiet possession of the goods.
 An implied warranty that no third party shall have any rights in the goods at the time when
ownership is to pass.
 An implied condition that the seller is not and will not be prevented from passing ownership of
the goods to the purchaser at the time when the ownership is to pass.

Purchaser’s Rights

The following is a list of the more important rights of the purchaser:

 The buyer is entitled to ask for and be given information as to the amounts outstanding and the
amounts still to be paid.
 If the buyer owes money to the seller on more than one contract, then the buyer may choose
which contract the money is put to.
 Where the seller has repossessed the goods because the buyer may reclaim the goods if s/he
pays the outstanding amount within 21 days.
 The may, if s/he chooses, pay any installment before it is due.
 If the buyer may chooses to pay the outstanding balance of the purchase price in one sum
before it is due, s/he may deduct from each installment not yet due an amount calculated at the
rate of 5% per annum for the period by which the payment is brought forward.
 Ownership in the goods subject to the agreement shall pass to the buyer provided all payments
have been made in terms of the agreement.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 26
 The buyer may terminate the agreement at any time before the final payment falls due by giving
written notice, returning the falls due by paying the seller (if s/he has not already done so)
amount to make up half of the purchase price. Damages will be payable if the buyer has not
taken reasonable care of the goods.
 Any waiver of the buyer’s rights is not binding on the buyer.

Seller’s Rights

The following are the more important rights of the seller:

 The seller may demand that s/he be kept informed of the buyer’s present address, the
whereabouts of the goods, and the Lessor’s name and address. Failure of the buyer to comply is
a criminal offence.
 If the seller has in writing informed the Lessor of the premises where the goods are kept that
the seller is the owner of the goods, then the lessor will not have a hypothec over those goods.
(law of Lease).
 The seller may state in the agreement that the goods shall not be removed from Zimbabwe
without the sellers’ consent. Breach of this term is a criminal offence and the seller can apply to
the court to have the goods detained to prevent their removal.
 If the Seller lawfully terminates the agreement after s/he has been paid 50% of the purchase
price, she may not recover possession of the goods, but they may be sold by a person appointed
by a magistrate after the magistrate has ensured that no negotiable instruments (e.g Cheques)
are outstanding. Any proceeds of the sale are put towards the buyer’s debt. If there is any
balance, the buyer is entitled to it, but if there is still a shortfall then the seller may recover the
balance from the buyer.

Advantages of Hire Purchase

 The seller is able to sell goods that the buyer might not otherwise afford.
 The buyer is able to buy goods without having to raise the full amount immediately.

Disadvantages of Hire Purchase

 The seller receives the full amount over a period of time.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 27
List of authorities

(i). Peter Volpe: Commercial Law of Zimbabwe – Contract

(ii). R.H. Christie: Business Law in Zimbabwe

(iii). E.C. MacColl: Case Briefs in Contract and Sale for Zimbabwean Students

(iv). J.T.R Gibson : Mercantile and Company Law in South Africa

(v). R.H. Christie: Practical Commercial Law in Zimbabwe

(vi). L. Madhuku: A handbook on Commercial Law in Zimbabwe.

COMMERCIAL LAW compiled by D Nyadombo (Mr.) 0773202991(HEXCO, CIS, IAC, SAAA, IMM,etc) Page 28

Vous aimerez peut-être aussi