• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.62
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• pp.33-53
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• 2014

This study examines the seller's liability for defects in title of goods under SGA. If the contracting parties choose SGA as a governing law, they should pay attention to whether a contractual stipulation for defects in title of goods is a condition or a warranty. It is because SGA divides contractual terms into a condition and a warranty. And its effects regarding a breach of a condition or a warranty are different. Under SGA s 12(1) as a condition, in a contract of sale, the seller has a right to sell the goods at the time of contract, and in the case of an agreement to sell, he will have such a right at the time when the property is to pass. Under SGA s 12(2) as a warranty, there is an implied warranty that (a) the goods are free, and will remain free until the time when the property is to pass, from any charge or encumbrance and (b) the buyer will enjoy quiet possession of the goods as long as the buyer retains an interest in the goods. But the seller will not be liable if the third party unlawfully interferes with the buyer's possession.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.69
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• pp.23-43
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• 2016

This study describes the exclusion of the seller's liability for defects in title under CISG and UCC. Through comparing two provisions, this article provides contracting parties with guidance regarding choosing governing laws and practical advice. CISG and UCC states not only the seller's liability for defects in title but also the exclusion respectively. Under two provisions, contracting parties who wish to avoid this liability may agree that the liability will not apply. Under UCC ${\S}$2-213(2), the seller's warranty can be disclaimed by specific language in the contract or by the circumstances surrounding the transaction. Although there is no express exclusion provision under CISG Article 41 and 42, Article 6 allows contracting parties to agree that they may exclude the application of the seller's liability. Both Article 42 under CISG and ${\S}$2-213(3) under UCC provide where the buyer furnishes specification to the seller. Under UCC ${\S}$2-213(3), it is the buyer's warranty to hold the seller harmless from any claims which arise from the seller complying with specification furnished by the buyer. But, under CISG Article 42, the seller's duty is excluded if the third party right or claim result from the fact that the seller has complied with specifications provided by the buyer. Therefore Article 42 does not charge the buyer with the duty, but rather limits the circumstances under which he could cause claims under Article 42. Interestingly, CISG has provisions which are absent from UCC. First, under Article 41, the seller escapes the liability if the buyer agree to take the goods subject to the third party right or claim. Second, under Article 42(2)(a), the seller is not liable if the buyer knew or could not have been unaware of the third party right or claim at the time of the conclusion of the contract.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.66
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• pp.95-118
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• 2015

This study examines the Buyer's Remedies in respect of Defects in Title under SGA. As SGA divides contractual terms into a condition and a warranty, its effects regarding a breach of a condition or a warranty are different. Where a stipulation in a contract of sale is a condition, its breach may give rise to a right to treat the contract as repudiated and to claim damages. Where there is a breach of a warranty in a contract of sale, the aggrieved party may have a right to claim damages. Regarding a breach of a condition under SGA s 12(1), although the buyer may have his right to terminate the contract, he may lose that right when he accept or is deemed to have accept the goods by intimating his acceptance to the seller, acting inconsistently with the ownership of the seller, or retaining the goods beyond a reasonable time without rejecting them. Furthermore, the buyer may claim the estimated loss directly and naturally resulting from seller's breach. SGA contains the principle of full compensation and so the suffered loss and the loss of profit are compensable. As to specific performance under SGA, the court has been empowered to make an order of specific performance to deliver the goods in conformity with the terms of the contract and so it is not a buyer's right. This order should be made only where the goods to be delivered are specific or ascertained goods and the court must think fit to grant the order. However, among these remedies, the buyer cannot have the right to terminate the contract where there is a breach of warranty by the seller under SGA s 12(2).