Dictionary

  • Sale by sample

    A contract for the sale of bulk goods on the basis of a sample inspected by the buyer. In accordance with sale of goods legislation, there are several implied conditions for sale by sample contracts as laid out in section 20 of the Sale of Goods Act 1923 (NSW):

    1. The good will correspond with the sample in quality;
    2. The buyer will have a reasonable opportunity of comparing the good with the sample; and
    3. The goods will be free from any defect that was not apparent on reasonable examination of the sample.

    Where the bulk goods do not match the sample, the aggrieved party may be able to seek damages or terminate the contract.

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