Akta Jualan Barang 1957
Applies to: Federal Act — see s 1 (Short title and application) · Official text ↗
- Defines key terms such as 'buyer', 'seller', 'goods', and 'delivery' (s 2).
- Distinguishes between a 'sale' (immediate transfer of property) and an 'agreement to sell' (future transfer) (s 4).
- Explains the difference between a 'condition' (essential term) and a 'warranty' (collateral term) (s 12).
- Implies that the seller has the right to sell the goods and that the buyer will have quiet possession (s 14).
- Requires goods sold by description or sample to match that description or sample (ss 15, 17).
- Implies that goods must be of merchantable quality and reasonably fit for a known purpose (s 16).
- States that risk of loss remains with the seller until property transfers to the buyer (s 26).
- Allows buyers to examine goods before they are deemed accepted (s 41).
What this law is
The Sale of Goods Act 1957 (Akta Jualan Barang 1957) is numbered Act 382 in the Laws of Malaysia. Where it applies is set out in section 1 (Short title and application).
Its long title, as printed in the official text: An Act relating to the sale of goods.
Read every section, the amendment history and the official copy on our law library page for this Act.
Laws cited on this page
| Act 382 | Sale of Goods Act 1957 Akta Jualan Barang 1957 | PDF · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 1 | The Act applies to the States of Peninsular Malaysia. |
| s 2 | Defines 'goods' as movable property (excluding money and actionable claims) and 'buyer' as a person who buys or agrees to buy. |
| s 4 | A contract of sale transfers property in goods for a price; if the transfer is future or conditional, it is an agreement to sell. |
| s 12 | A condition is essential to the contract's main purpose, while a warranty is collateral; breaching a condition allows rejection, while breaching a warranty allows a claim for damages. |
| s 14 | Unless agreed otherwise, the seller is implied to have the right to sell the goods, and the buyer is implied to have quiet possession free from third-party charges. |
| s 15 | If goods are sold by description, there is an implied condition that the goods must correspond with that description. |
| s 16 | There is generally no implied condition as to quality or fitness, except: goods must be reasonably fit for a purpose the buyer made known, relying on the seller's skill or judgment, where the seller's business supplies such goods (s 16(1)(a)); and goods bought by description from a seller who deals in such goods must be of merchantable quality — but not as to defects the buyer's own examination ought to have revealed (s 16(1)(b)). |
| s 17 | If goods are sold by sample, the bulk must correspond with the sample in quality and be free from defects not apparent on reasonable examination. |
| s 26 | Unless otherwise agreed, goods remain at the seller's risk until property transfers to the buyer, after which they are at the buyer's risk. |
| s 31 | The seller has a duty to deliver the goods, and the buyer has a duty to accept and pay for them according to the contract. |
| s 41 | A buyer is not deemed to have accepted goods until they have had a reasonable opportunity to examine them for conformity with the contract. |
| s 59 | For a breach of warranty, the buyer cannot reject the goods but may reduce the price or sue for damages. |
Worked examples
Facts. Ahmad buys an umbrella from a shop in Kuala Lumpur that sells umbrellas. The first time he uses it in the rain, it leaks badly.
The law. Where goods are bought by description from a seller who deals in goods of that description, there is an implied condition that they are of merchantable quality (s 16(1)(b)). Breach of a condition gives a right to treat the contract as repudiated (s 12(2)).
Outcome. If the umbrella is not of merchantable quality, Ahmad may reject it and treat the contract as repudiated (s 12(2)), or he may choose to treat the breach as a breach of warranty and claim a price reduction or damages instead (s 59(1)).
Facts. Siti orders a 'blue' shirt from an online seller in Penang. She receives a 'green' shirt. She wants to return it.
The law. The contract is for the sale of goods by description (s 15). There is an implied condition that the goods shall correspond with the description (s 15).
Outcome. Since the goods do not correspond with the description, Siti can reject the goods as the breach is of a condition (s 12(2), s 15).
Facts. Ravi buys a new laptop from a computer shop in Johor Bahru without examining it in the shop. At home he finds a fault that he could not have seen in the box.
The law. A buyer who has not previously examined the goods is not deemed to have accepted them until he has had a reasonable opportunity to examine them (s 41(1)). The implied condition of merchantable quality does not cover defects that the buyer's examination ought to have revealed, if he examined the goods (s 16(1)(b), proviso).
Outcome. Ravi had not examined the laptop, so he has not yet accepted it. If the fault means it is not of merchantable quality, he may reject it (ss 12(2), 16(1)(b)) or claim a price reduction or damages (s 59(1)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
What counts as 'goods' under this Act?
Goods include every kind of movable property other than actionable claims and money (s 2). This includes stock, shares, growing crops, and things attached to land that are agreed to be severed before sale (s 2).
What is the difference between a condition and a warranty?
A condition is essential to the main purpose of the contract, and its breach allows the buyer to reject the goods (s 12(2)). A warranty is collateral to the main purpose, and its breach only gives the buyer a right to claim damages, not to reject the goods (s 12(3)).
Can I reject goods that are not of good quality?
If you bought by description from a seller who deals in goods of that description, there is an implied condition that the goods are of merchantable quality (s 16(1)(b)) — except for defects that your own examination ought to have revealed. Breach of a condition gives you the right to treat the contract as repudiated, i.e. reject the goods (s 12(2)); you may instead treat it as a breach of warranty and claim a reduction in price or damages (s 59(1)).
Who bears the risk if the goods are damaged before I receive them?
Unless otherwise agreed, the goods remain at the seller's risk until the property in the goods is transferred to the buyer (s 26). Once the property transfers to the buyer, the goods are at the buyer's risk, even if delivery has not yet been made (s 26).
Do I have to accept goods immediately when they are delivered?
No, you are not deemed to have accepted them unless and until you have had a reasonable opportunity of examining them to see if they conform to the contract (s 41(1)). The seller is bound to afford you this opportunity on request (s 41(2)).
Can the seller exclude the implied terms about quality?
Yes, any right, duty, or liability arising by implication of law may be negatived or varied by express agreement, course of dealing, or usage that binds both parties (s 62).
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Sources
Related
Consumer rightsConsumer Protection Act 1999Contracts Act 1950Small claims (RM5,000 and below)