What You Need to Know About the Sales of Goods Act 2002 in Tanzania

What You Need to Know About the Sales of Goods Act 2002 in Tanzania

The Sales of Goods Act 2002 is the main legislation that regulates the contracts for sale of goods in Tanzania. It provides the legal framework for the rights and obligations of sellers and buyers, as well as the remedies for breach of contract. The Act applies to both domestic and international sales of goods, unless the parties agree otherwise.

sales of goods act 2002 tanzania pdf download

The Act defines a contract of sale as a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price. The contract can be either a sale or an agreement to sell. A sale occurs when the property in goods passes from the seller to the buyer at the time of making the contract. An agreement to sell occurs when the property in goods is to pass at a future time or subject to some condition.

The Act also distinguishes between specific or ascertained goods and unascertained or future goods. Specific or ascertained goods are goods identified and agreed upon at the time of making the contract. Unascertained or future goods are goods not identified and agreed upon at the time of making the contract, but to be supplied by description, sample or otherwise.

The Act sets out various rules for determining when the property in goods passes from the seller to the buyer, depending on whether the goods are specific or unascertained, and whether they are sold in a deliverable state or not. The passing of property is important because it determines when the risk of loss or damage passes, and when the seller can sue for the price or the buyer can sue for non-delivery.

The Act also implies certain conditions and warranties into every contract of sale, unless they are excluded by express agreement or by trade usage. Conditions are stipulations that are essential to the main purpose of the contract, and their breach entitles the aggrieved party to repudiate the contract and claim damages. Warranties are stipulations that are collateral to the main purpose of the contract, and their breach only entitles the aggrieved party to claim damages. Some of the implied conditions and warranties relate to title, quiet possession, freedom from encumbrances, correspondence with description, correspondence with sample, quality or fitness for purpose, etc.

The Act also confers certain rights on an unpaid seller against the goods and against the buyer personally. An unpaid seller is one who has not been paid or tendered the whole price, or who has received a bill of exchange or other negotiable instrument that has been dishonoured. The rights against the goods include a lien, a right of stoppage in transitu, and a right of resale. The rights against the buyer personally include a right of action for price, a right of action for damages for non-acceptance, and a right of withholding delivery.

The Act also provides various remedies for both sellers and buyers in case of breach of contract. These include damages for non-delivery, damages for non-acceptance, specific performance, injunctions, rescission, etc. The measure of damages is generally based on the difference between the contract price and the market price at the time of breach.

If you want to learn more about the Sales of Goods Act 2002 in Tanzania, you can download a pdf copy of it from here [^1^]. You can also find some useful information on this website [^2^]. e0e6b7cb5c