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Lecture 8

ACTG 2P40 Lecture Notes - Lecture 8: Only Time, Nuisance, Fundamental Breach

5 pages42 viewsWinter 2013

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Katharine Book

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March 10, 2014
Chapter 14 – Sale of Goods
1. Application of the Sale of Goods Act
a. Meaning of “Sale” : transfer of title for money not including lease or consignment
Title v. possession:
Title = ownership
Possession = physical control
oJust because it’s not in the owners possession doesn’t mean they
don’t own it
oNot a consignment
Only tending to hover sales of goods where there is no contract
To protect consumer, consumer protection legislation
There are terms that automatically apply to the sales of goods to protect
the consumer
When will it apply? - when there is a sale, and a good
b. Meaning of “Goods”: tangible items not including real property, money or chose
in action
Must distinguish goods from services
Physical things
Chose in action – giving up a legal right
1. No written contract
2. It’s a sale
3. It has to be a tangible item
2. Statutory Protection for the Buyer: Implied Terms
a. The Caveat Emptor Principle (Buyer Beware)
Have to do your due diligence otherwise it can’t be implied
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March 10, 2014
b. Terms implied in every contract to which the Sale of Goods Act applies
1. Seller has the title to the goods and right to sell the good
Condition = fundamental breach
Have to have ownership and have to be able to
transfer the ownership
If they don’t have ownership than that would be a
fundamental breach
Warranty = not fundamental breach, damages
Quiet Enjoyment Liens – without being disturbed
If they have ownership and can transfer ownership but
has a loan against the object, the new owner can
check the PPSA to see if there are any liens with the
Liens travel with the object and not with the owner
Can only sue for your damages
2. The goods correspond with the seller’s description
Consider if misrepresentation is an argument as
3. Sale by sample
Has to be the same as the sample
4. Suitability and quality of goods (implied term as to fitness) *******
2 aspects – both are condition
(1) the goods will be a merchantable quality
reasonably a manufacturing defect
(2) implied term as to fitness
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