Chapter 15 - Commercial Code

Chapter 15 - Commercial Code

27.1501 Limit on sale price of goods.

No merchant, trader, storekeeper or other person may sell goods to a Samoan on credit for more than the current cash selling price of like goods at the place where the credit transaction took place, but this section shall not prohibit a Samoan from agreeing in writing to pay interest of not more than 8% per year on overdue accounts growing out of credit transactions.

27.1510 Validity of mortgage, bill of sale, etc.

No mortgage, agreement that creates or provides for a security interest, bill of sale, conditional sales contract, deed of trust or conveyance of personal property which is not accompanied by a permanent delivery thereof to the vendee is valid as to persons who do not have actual knowledge thereof unless all of the following conditions are met:

(1) it is in writing signed by the person to be bound and attested to by at least one witness;

(2) it is filed with the Territorial Registrar within 10 days after its execution;

(3) it truly states the consideration upon which it was based or the debt or liability which it was intended to secure, and contains a description of the land sold or mortgaged, or the security for the debt or liability that reasonably identifies the security, whether specific or not. The security may be described by its listing, category, type, quantity and/or location and may include property so described which is acquired after execution of the mortgage or agreement creating or providing for the security interest.

27.1511 Filing of instrument of satisfaction.

When the obligation secured by any of the instruments mentioned in 27.1510 has been satisfied, the owner or holder of the instrument shall satisfy the same in the records of the Terri-torial Registrar by filing an instrument of satisfaction or by endorsing upon the margin of the record a statement, signed by him, releasing his interest in the property affected.

27.1530 Contracts-Sufficiency of writing.

Except as otherwise provided in this section and 27.1531 and 27.1532, a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this section beyond the quantity of goods shown in such writing.

27.1531 Contracts-Formal requirements.

Between merchants if within a reasonable time a writing in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfies the requirements of 27.1530 against that party unless written notice of objection to its contents is given within 10 days after it is received.

27.1532 Contracts-Enforceability.

A contract which does not satisfy the requirements of 27.1530 but which is valid in other respects is enforceable:

(1) if the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller’s business and the seller, before notice of repudiation is received and under circumstances which reasonably indicate that the goods are for the buyer has made either a substantial beginning of their manufacture or commitments for their procurement;

(2) if the party against whom enforcement is sought admits in his pleading, testimony or otherwise in court that a contract for sale was made, but the contract is not enforceable under this provision beyond the quantity of goods admitted; or

(3) with respect to goods for which payment has been made and accepted or which have been received and accepted.