2750achapter10notes - Chapter 10 Sales and Consumer...

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Chapter 10: Sales and Consumer Protection The Sale of Goods: Sales of Goods Act: o The sales of goods act is essentially a summation and codification by the British Parliament of the case law in place in the 19 th century o The primary purpose of the act is to imply the terms that the parties to sale of goods transactions often leave out (specify date) o It must be emphasized that the normal contract rules apply to sale of goods transactions except where overridden by the sale of goods act Goods and Services: o Only those contracts involving goods, goods are tangible items o Doesn’t include real estate but does include crops still growing on land o Contracts for intangibles, such as services or the exchange of negotiable instruments o Main component of the transaction is the service provided, and so, the sales of goods act will not apply Transfer of goods: o Applies only when it can be demonstrated that the parties intended that the actual possessions and property of the goods would transfer to the buyer Monetary Consideration: o Act does not apply to barter Requirement of Writing: o Some provinces require evidence in writing Title and Risk: o When the title does not transfer immediately upon the sale agreement’s being concluded, it is called an agreement to sell o Four common methods are sometimes used to override this provision act 1) C.I.F contracts (cost, insurance and freight) one of the parties has been designated as being responsible for paying the costs involved in the shipping of those goods as well as arranging insurance, in the process of assuming the risk if anything goes wrong 2) F.O.B. contracts (free on board) the seller will bear the risk until a specified point in the transport process 3) C.O.D. contracts (cash on delivery) entitles the seller to maintain the proprietary rights or title as well as control over possession of those goods until they are delivered to the buyer’s premises and paid for 4) Bill of lading is a document given by the transporter or carrier of the goods to the shipper as a form of receipt. The seller can maintain control (and risk) with respect to those gods by naming itself as the party entitled to receive delivery of the goods at their destination www.timetocram.com
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