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Passing of Property under the Sale of Goods Act in Nigeria: A call for Legislative Action

2020; Nova Southeastern University; Volume: 7; Issue: 1 Linguagem: Inglês

1082-7307

Uchechukwu Wilson Nwosu, Joy Uyo Ata-Agboni,

International Law and Aviation

Abstract This paper evaluates the rules relating to the passing of property under the Sale of Goods Act 1893, an English Statute of General Application that is ironically still in use and indeed forms the foundation of commercial transactions in Nigeria till date. It notes that the determination of the exact point at which the transfer of ownership or property in goods occurs is central to, and has implications regarding the rights and obligations of the parties, and that the rules vary with particular reference to specific goods on the one part and unascertained goods on the other. The study reveals that the rules regulating the passing of property, ownership, or risk under International Sale of Goods differ from the ordinary rules that regulate domestic commercial transactions due to the peculiar complexities of transnational commerce which may be designated Free on Board (FOB); Cost, Insurance, and Freight, (CIF); Free Alongside Ship (FAS); Ex-works, etc. The paper concludes that in the absence of illegality, if a contract provides for a specific method, place, or time of passing of property or risk, or both, the courts would normally uphold it even though it differs from the provisions of the Sale of Goods Act or the standard commercial practice. It recommends that the Nigerian Legislature should do the needful by passing an autochthonous Sale of Goods Act in line with International best practices bearing in mind that the English Sale of Goods Act, 1893 that is still in use in Nigeria presently has undergone several amendments in England in response to contemporary commercial realities. It equally recommends that the United Kingdom should urgently consider ratification and immediate domestication of the 1980 Vienna Convention on International Sale of Goods which is one of the most significant developments in relation to the passing of property and risk in International contracts for the sale of goods.