Title
1. This Act shall be cited as the “Sale of Goods
Act”.
Sale of Goods
2. A Sale of Goods is an agreement between the seller and the buyer
to transfer the property in goods by the seller to the buyer for
a determined price. In this Act, the said agreement shall be referred
to as the Contract for Sale of Goods.
Capacity
3. (a) Parties to a Contract for Sale of Goods shall have the capacity
to enter into a contract.
(b) A minor or a person incapable of entering into a contract shall
pay a reasonable price in respect of necessaries sold and delivered
to him.
Existing or future goods
4. Goods sold under a contract shall be either existing
goods or future goods.
Existing goods under this section shall refer to goods which are
owned or possessed by the seller. And future goods shall refer to
goods which shall be manufactured or acquired by the seller after
entering into the contract.
Price
5. The price as regards a contract for sale shall be the
price fixed in the contract or the price determined in a manner
agreed in the contract.
6. Parties to a contract may agree that the price be determined
by a third party.
Implied
Terms
7. Where no expressive provision is made in the contract
that the goods are sold in pursuance of the right of the seller
to sell the goods and a contrary provision does not appear in the
contract, it shall be implied that the seller has the right to sell
the goods in question. The right of the seller to sell the goods
at the time of agreement to sell shall be considered valid if the
ownership in the goods transfers to the buyer.
Transfer of ownership
8. The ownership in the goods shall transfer to the buyer
at such time determined in accordance with the contract.
Fitness for purpose
9. Goods sold under a contract shall be considered reasonably fit
for a particular purpose where such purpose has been made known
to the seller by the buyer.
Right to retain property of goods
10. The seller has the right to retain the goods until the fulfilment
of the terms of the contract or part thereof. In such event the
ownership of the goods shall not pass to the buyer until such terms
are fulfilled.
Risk
11. Unless otherwise agreed, regardless of whether the
property has been transferred or not, any risks inherit in the goods
shall be deemed to have passed from the seller to the buyer at the
time of the transfer of ownership of the goods. In this section
risk shall mean the risk of any undesirable consequences which may
result from the ownership of the goods being transferred.
Duty of both parties
12. The duty of the seller is to deliver the goods in accordance
with the terms of the contract. Similarly the duty of the buyer
is to accept the goods and pay its price in accordance with the
terms of the contract.
Rules of delivery of goods
13. Unless otherwise agreed:-
(a) Delivery of the goods and payment of the price shall be concurrent
conditions.
(b) Place where the goods are delivered is the place where the seller
conducts his business.
(c) The buyer is not bound to accept any goods delivered by instalments.
Delivery of wrong quantity or defective goods
14 (a) The buyer is not bound to accept any quantity of
goods delivered by the seller more than or less than the amount
for which the buyer contracted to buy.
(b) Where the seller delivers to the buyer a quantity of goods less
than the amount for which the buyer contracted to buy and if the
buyer accepts them, the buyer shall pay for them at the proportional
rate to the agreed price.
(c) Where the seller delivers to the buyer a quantity of goods more
than the amount for which the buyer contracted to buy, the buyer
may accept the quantity of goods for which he contracted. Where
the buyer accepts the whole of the goods so delivered, he shall
pay for them at the rate proportional to the agreed price.
(d) Where the seller delivers to the buyer the goods included in
the contract together with goods not included in the contract, the
buyer may accept the goods which are in accordance with the contract
and reject the rest or may reject the whole.
(e) In the event of any defect in goods, the buyer may reject the
goods provided such defect occurred prior to delivery from the seller
to the buyer.
Legal acceptance of the goods
15. The buyer is deemed to have legally accepted the goods if the
buyer acts in any of the following ways.
(a) Where the buyer communicates to the seller his acceptance of
the goods.
(b) Where the buyer retains in his possession the goods for reasonable
period without communicating his rejection of the goods to the seller.
(c) When the goods have been delivered to the buyer and the buyer
does any act which affects the ownership of the seller.
Right to rescind sale
16. Unless otherwise agreed, either party shall have the
right to rescind the sale of goods provided that the seller and
the buyer have not parted subsequent to the conclusion of the sale.
Rights of unpaid seller
17. Notwithstanding that the ownership of the goods is
to transfer to the buyer in accordance with the provisions of this
Act the seller, to whom the price of the goods has not been paid
to, shall have the following rights.
(a) In the event he is in possession of the goods, the legal right
to retain them until payment of the price thereof.
(b) The right of resale to a third party.
Lien on the goods.
18. (a) The seller has the right of exercising a lien under the
following circumstances.
(i) Where the seller has not received credit.
(ii) Where the goods have been sold on credit and the term of credit
has expired.
(iii) Where the buyer becomes insolvent.
(b) The seller loses his right of lien where the buyer or his agent
has obtained possession of the goods in accordance with this Act
or the seller has waived his right thereof.
Sale to third party
19.
(a) The seller shall resell the goods upon occurrence of any of
the following circumstances.
(i) Where the goods are perishable in nature.
(ii) Failure on the part of the buyer to settle payment of the price
within a reasonable period after the buyer has been given notice
of the intention to resell the goods.
(iii) Where it has been stipulated that upon breach of the contract
by the buyer the seller is entitled to resell the goods to a third
party, the buyer is in breach of the contract.
(b) In the event the seller suffers damage as a result of the breach
of contract by the buyer the seller may claim damages in respect
thereof.
Suit for price
20. Where the buyer neglects to pay for the goods or refuses
to pay the price thereof the seller may file suit to recover the
price.
Buyer’s remedy for breach of contract
21.
(a) Where the seller neglects to deliver the goods or refuses to
make delivery thereof, the buyer may file suit to seek damages in
relation to the loss suffered by the buyer.
(b) Damages under sub-section (a) of this section shall be the difference
in value between the agreed price and the market price of the goods
at the time specified in the contract as regards delivery, or the
difference in value between the agreed price and the expenses incurred
by the buyer in acquiring similar goods from a third party.
22. Unless otherwise defined in this Act:-
(a) Goods shall include all kinds of movable property other than
money.
(b) “Seller” shall mean a person who sells or agrees
to sell.
(c)
“Buyer” shall mean a person who buys or agrees to buy.
(d) Delivery shall mean the voluntary transfer of possession from
one person to another. Delivery shall include transfer of possession
effected by delivery made hand to hand or carrying or sending through
a third party.
(e)
“Credit” shall mean a document issued in a transaction
concerning sale of goods that contains a promise to pay within a
specified period.
Maldives
Islands 
