An Appraisal of the Rules of Passing of Property in Commercial Transactions

Abstract

The central focus of this article is the appraisal of the rules of passing of property in commercial transactions. The study employed the doctrinal method in conducting this research. To this end, primary sources such as legislation and judicial authorities were examined and relied upon. Also, references were made to secondary materials such as textbooks, articles in learned journal and internet sources. The paper posits that section 18 of the Sale of Goods Act 1893 stipulates five rules that regulates the passing of property in the goods involving commercial transactions from the seller to the buyer where the parties have not expressed their intention at the commencement of their contract. The paper discover that the Sale of Goods Act 1893 was introduced into Nigeria as a statute of general application well over century ago as a consequence of colonial imperialism. Thus, while the United Kingdom has enacted a Sale of Goods Act 1978, Nigeria is still stuck with a colonial law that is outdated and out of touch with modern reality. More so, the Sale of Goods Act/Law still permits the presence of exclusion clauses and limiting terms in consumer contracts which is contrary to the modern move against the inclusion of exemption clauses into consumer contracts. The paper therefore recommends the repeal of the colonial Sale of Goods Act 1893 and its version domesticated as State Laws by replacing same with an autochthonous one made by the nation’s law makers. Also, the new Sale of Goods Act should abolish the unfair practice of insertion or inclusion of exemption clauses or limiting terms in consumer contracts. The recommendation aligns with the global trend in the area of consumer protection as witnessed by the English Unfair Contract Term Act 1977. Furthermore, a new Sale of Goods Act will take into cognisance issues of easy-buy, online transactions and modern economic realities association with commercial transactions.