THE BUYER'S RIGHT OF REJECTION IN CONTRACTS FOR THE SALE OF GOODS

Abstract

The object of this paper is to explore the operation of s. 14(3) of the Sale of Goods Act of 1896(Qld) and its effect upon the buyer's right to reject goods under a sale of goods contract. Part 1 examines severable contracts and the circumstances in which a buyer may reject goods under such a contract. Part 2 — the pith of the paper — examines contracts for sales of specific goods and the buyer's right to reject such goods. Conjunctively, some attention will be given to inducement into contracts as a result of innocent misrepresentation. Queensland's Sale of Goods Act maintains in s. 14(3), in contracts for the sale of specific goods, the notorious provision terminating the right of rescission (and rejection) upon the passing of property in the goods. Some scrutiny of cases involving misrepresentation will, it is submitted, amplify the shortcomings of that section. In Part 3 a brief comparison with the English and United States positions will provide a basis for arguing for the reform of s. 14(3). It is submitted that reform of s. 14(3) is necessary because, although the Trade Practices Act, 1974 (C'wth) provides, by way of rescission, a wider remedy for breach of contractual condition than does the Sale of Goods Act, the former Act is inapplicable unless a transaction falls within its qualifying provisions. Thus, for example, the Sale of Goods Act remains highly relevant where the contracting parties are two consumers or sole traders or partnerships contracting with consumers or each other.