Timing of transfer determines whether seller can sue for entire price of goods

Timing of transfer determines whether seller can sue

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Timing of transfer determines whether seller can sue for entire price of goods or only damages when buyer defaults Timing of transfer determines who bears risk Five rules set out in Sale of Goods Act (see your textbook) 15 - 9
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Rights and Obligations of the Parties Some terms of a sale of goods contract are called conditions , while others are warranties Remember from a previous lecture: Conditions: terms essential to substantial performance Warranties: minor terms of contract 15 - 10
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Rights and Obligations cont’d The victim of a breach of a condition (essential) can: Ignore it and accept the goods – but cannot later claim a breach of contract; or Consider themselves to be no longer bound to the contract The victim of a breach of warranty (minor) is not released from obligations , but may be entitled to damages 15 - 11
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Rights and Obligations, continued The key difference, then, between a condition and a warranty is that a breach of condition allows a victim to end the contract Note: acceptance (i.e. ignoring the breach and accepting the goods) causes victims to lose their right of discharge 15 - 12
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Obligations of the Seller Seller must convey good title (i.e. seller must have the right to sell the goods) Goods must be usable Goods must be free of liens (security for a debt) Goods must match description Goods must be of merchantable quality Goods must match sample and be free of hidden defects 15 - 13
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Other Implied Terms When the following terms are not stipulated in a contract, then the Sale of Goods Act implies: A reasonable price must be paid for the goods Whether time of delivery is a condition or warranty will be implied from conduct Purchaser can choose to return or keep goods when incorrect quantity is delivered 15 - 14
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Sales Made Online On-line transactions are covered under the Sale of Goods Act Problem: agreements to override requirements as to fitness and quality often buried somewhere in the site If buyer is told of provisions, but fails to read them for him/herself, he/she may still be bound 15 - 15
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Remedies on Default Seller may: Retain goods until paid for Stop delivery of goods Recover after delivery within 30 days Sue for breach of contract and for damages (but must mitigate losses by reselling immediately) Seller also gets priority over other creditors in case of bankruptcy 15 - 16
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Buyer’s Remedies Remedies available to buyer : Rescission for innocent misrepresentation
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