Textbook Notes (362,734)
Canada (158,032)
Accounting (74)
ACTG 2P40 (8)
P.Maloney (5)

Sale of Goods

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Brock University

Chapter 14 Sale of Goods 1. Application of the sale of goods act a. Meaning of ‘goods’: tangible items, not including land, money or chose in action. Must distinguish goods from service. b. Meaning of ‘sale’: transfer of title for money not including lease or consignment. i. Title v. Possession ii. Title = Ownership iii. Possession = Physical Control 2. Statutory Protection for the Buyer: Implied Terms a. The Caveat Emptor Principle (Buyers Beware) b. Terms implied in every contract to which the Sale of Goods Act applies i. Seller has the Title to the Goods and Rights to Sell the Goods 1. ii. The goods correspond with the sellers description iii. Sale by sample iv. Suitability and quality of goods (implied term as to fitness) 3. Other Rules which apply to Contracts for the Sale of Goods a. Exemption clauses b. Payment c. Quantity d. Time for delivery 4. Passage of Title to the Goods a. Why is it important? b. Four rules for passing of Title to Specific Goods c. Rule for Passing of title to unascertained goods Implied Terms in a contract The Sales of Good Act implies the following contractual terms;  An implied condition that the seller has (or will have) a right to sell the goods  An implied warranty that the buyer will have and enjoy quiet possession of the goods  An implied warranty that the good will be free from any undisclosed charge or encumbrance  An implied condition that the goods will correspond with the description under which they are sold  An implied condition that the good will be reasonably fir for the purpose for which they are required if that purpose was made know to the seller  An implied condition that the goods will be of merchantable quality  In the case of a sale by sample, an implied condition that the bulk will correspond with the sample Specific Goods ** - goods in existence and agreed on as the subject matter of the sale Rule 1: In an unconditional sale for a contract for specified goods in a deliverable state, title passes when the contract Is made. Ex. When a tv is bought by cheque post dated for 5 days, title passes when the contract is made. Rule 2: In a contract for sale of s
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