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First Principles of Business Law |
| Statutory provisions affecting contracts for goods and services |
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3. Terms implied by law into contracts for the sale of goods |
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3.5. Terms regarding legal title to goods sold |
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Read the facts and the question and then choose the best answer. A agrees to sell 50 tonnes of jasmine rice to B at a price of $500 per tonne. At the time of the sale, A does not have any jasmine rice in stock, but he intends to buy the 50 tonnes from a supplier. B claims that, under the sale of goods legislation, it is a term of a contract of sale that the seller must be the owner of anything that they agree to sell. Is B correct? |
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(a) Yes, sellers are required by law to be the owner of anything that they agree to sell. (b) No, sellers are not required by law to be the owner of anything that they agree to sell. |
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