Textbook Notes (368,666)
Canada (162,047)
LAW 122 (625)
Chapter 13

Chapter 13 Notes

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Law and Business
LAW 122
Kernaghan Webb

Chapter 13: Special Contracts: Sale of Goods T HE SALE O FG OODS A CT The Canadian economy was traditionally based on tangible goods; however, recently the situation has started to change. We are beginning to depend on more intangible things, like information and services. Nevertheless, the sales of goods remain vitally important: i. As individual consumers, we will always need to buy things like food and clothing. ii. Many businesses in this country continue to deal primarily in goods, either buying or selling things. iii. Eve those businesses that do focus on info occasionally find it necessary to participate in the sale of goods. Bc sales of goods contracts are so significant; they are governed by a special statute, the Sale of Goods Act. Interestingly, that statute was initially introduced as a codification. Business people did not want to spend time or money in court. They want clear & comprehensive laws that allow them to quickly deal w potential problems & get on with the job of making money. Thus, the British Parliament transferred, or codified, the judge-made rules into Sales of Goods Act in 1893. Since then, all common law jurisdictions in CA have adopted virtually identical legislation. Judges wanted to provide default rules that would apply if the parties did not deal with particular issues themselves, where goods can be bought and sold quickly bc the parties do not have to negotiate and agree on a long list of terms. The act does much of the work for them. Bc the Act provides default rules, a contract may include terms that the parties did not even discuss. If you are buying or selling goods you should know the rights & obligations that the statutes implies and if you are unwilling to accept those rights & obligations, you should walk away from the deal or persuade the other party to adopt different terms. A S ALE O F G OODS The Sale of Goods Act only applies to a sale of goods. o Sale of Goods: is a contract whereby the seller transfers or agrees to transfer the property in goods to a buyer for a money consideration called the price. Note for points: i. The Act applies only to a sale. o The terms cover two situations: sales and agreement to sell. o Sale: occurs if the buyer obtains ownership in the goods as soon as the contract is created. o Agreement to Sell: occurs if the buyer does not obtain ownership of the goods until some time after the contract is created. E.g. a buyer agrees to purchase a car that has not yet been manufactured. o A sale of goods does not occur if the buyer is not intended to eventually obtain ownership. E.g. if goods are leased, gifts, or it goods are provided as security for a loans. ii. The Act applies only to a sale of goods. o Goods are tangible things that can be moved. It doesnt include land or things that have already been attached to land, e.g. houses and fences not moveable. 1 of 7 www.notesolution.com
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