In this Report the following recommendations are made for the amendment of the Sale of Goods Act 1923 (NSW). Draft legislation to implement them is set out in Appendix A.

Innocent Misrepresentation

1. The rules of equity relating to rescission for misrepresentation should be expressly preserved for sale of goods contracts. (Para 2.16)

2. Rescission of a sale of goods contract for misrepresentation should not necessarily be precluded by the fact that the contract has been performed. (Para 2.2 1)

3. Rescission of a sale of goods contract for misrepresentation should not necessarily be precluded by the fact that the misrepresentation has become a term of the contract. (Para 2.24)

4. Acceptance should not bar rescission for misrepresentation unless there arc words or conduct which would amount to affirmation under the general law. (Para 2.26)

Intermediate Stipulation

5. The Sale of Goods Act 1923 should be amended to make it clear that it does not exclude the right to treat a contract of sale as repudiated for a sufficiently serious breach of an intermediate stipulation. (Para 3.12)

Requirement of Writing

6. Section 9 of the Sale of Goods Act 1923 should be repealed. (Para 4.22)

Passing of Property in Specific Goods

7. The passing of property in specific goods should no longer of itself bar rejection of the goods. (Para 5.27)

Acceptance and Examination of Goods

8. The description of acceptance in s38 of the Sale of Goods Act 1923 should be subject to s37 in the case of acceptance by an act of the buyer inconsistent with the ownership of the seller. (Para 6.19)