Australian Capital Territory Consolidated Acts

LAY-BY SALES AGREEMENTS ACT 1963 - SECT 11

    (1)     Subject to this Act, the Sale of Goods Act 1954 applies to a lay-by sale agreement.

    (2)     In every lay-by sale agreement there is—

        (a)     an implied warranty that the buyer shall, after delivery to him or her of the goods, have and enjoy quiet possession of the goods; and

        (b)     an implied condition on the part of the seller—

              (i)     if the goods are in the possession of the seller at the time when the lay-by sale agreement is made—that he or she has a right to sell the goods; and

              (ii)     if the goods are not in the possession of the seller when the lay-by sale agreement is made—that he or she will have the right to sell the goods that are inspected and approved by the buyer when they are inspected and approved; and

        (c)     an implied warranty—

              (i)     if the goods are in the possession of the seller at the time when the lay-by sale agreement is made—that the goods are free from any charge or encumbrance in favour of a third party that is not declared or known to the buyer before or at the time when the contract is made; and

              (ii)     if the goods are not in the possession of the seller at the time when the lay-by sale agreement is made—that the goods when inspected and approved by the buyer will be free from any charge or encumbrance in favour of a third party that is not declared or known to the buyer before or at the time of inspection and approval; and

        (d)     subject to subsection (3), an implied condition that the goods will, on delivery, be of merchantable quality.

    (3)     The condition referred to in subsection (2) (d) shall not be implied—

        (a)     if—

              (i)     the goods are second-hand goods; and

              (ii)     the sales docket relating to the lay-by sale agreement contains a statement that the goods are second-hand goods; or

        (b)     as to defects—

              (i)     that the seller could not reasonably have been aware of at the time when the property in the goods passed; or

              (ii)     that, if the buyer has examined the goods, ought to have been revealed by the examination.

    (4)     The seller under a lay-by sale agreement is not entitled to rely on a provision of the agreement excluding or modifying the condition specified in the Sale of Goods Act 1954 , section 19 (2) unless he or she proves that, before the agreement was made, the provision was brought to the notice of the buyer and its effect made clear to him or her.