Chapter 14-The sale of goods act SGAContracts of saleThe...

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Chapter 14-The sale of goods act (SGA)Contracts of saleThe SGA provides that a contract for sale is:-“is a contract whereby the seller transfers or agrees to transfer the property in the goods to the buyer for a money consideration, called the price”Sale Vs. Agreement to SellSale:the seller transfers ownership in the goods to the buyer at the moment the contract is madeAgreement to sell:a contract for sale in which the transfer of ownership in the goods is deferred to somefuture time-SGA applies to both sales and agreements to sell-checklist on pg. 299Agreements to sell-may be formed even when goods don’t exist yet(ex. goods to be manufactured and sold in three months’ time; contract to sell crops once grown)-agreement to sell is a binding contract-Consignment:the transfer of only possession of goods from 1 business to another for purpose of offering the sale-the SGA doesn’t apply to consignmentsGoods-for the SGA to apply, the subject matter of the contract must be goods -property can be real properly (interest in land) or personal (intangible or tangible property)-SGA applies to the sale (or agreement to sell) goods-SGA doesn’t apply to contracts for services- must distinguish between goods and servicesOwnership and possession-for the SGA to apply, goods must be transferred in both title and possession-ownership = legal title-possession = physical control
-Important distinction- timing of when title passes to buyer is important-> Installment contracts? Vendor often keeps title to goods until the last payment is made whereas
Implied terms- statutory protectionsCondition vs. WarrantCondition:major or essential term of the contract, the breach of which may relieve the injured party from further performanceWarranty:a lesser or non-essential term that, when breached, doesn’t relieve the injured party from performance (can still sue for damages but must perform)-some terms implied in the act are conditions and others are warrantiesImplied terms- seller’s title-Caveat emptor applies to quality of goods, now ownership-> inspection by buyer doesn’t normally indicate who owns the goods-in offering goods for sale, seller impliedly represents that he/she has the right to do soImplied terms- description

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