Contracts Overview - Revision history

Drew Jackson: /* Future performance contracts */

2018-10-11T12:15:39Z

Future performance contracts

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	==== Future performance contracts====		==== Future performance contracts====
	The [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec17_smooth ''Business Practices and Consumer Protection Act''] and the ''[http://canlii.ca/t/52v92 Consumer Contracts Regulation]'' define a '''future performance contract''' as a contract for the supply of goods or services costing more than $50, where the delivery of the goods or performance of the services (by the supplier), or payment for either (by the consumer), is not made when the contract is signed. “Supply” is defined to include a sale, lease, assignment, etc. Future performance contracts do not include contracts for the supply of goods or services under a credit agreement if the goods or services have been supplied, and do not cover timeshare contracts. The ''Business Practices and Consumer Protection Act'' regulates future performance contracts.		The [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec17_smooth ''Business Practices and Consumer Protection Act''] and the [http://canlii.ca/t/52v92 Consumer Contracts Regulation] define a '''future performance contract''' as a contract for the supply of goods or services costing more than $50, where the delivery of the goods or performance of the services (by the supplier), or payment for either (by the consumer), is not made when the contract is signed. “Supply” is defined to include a sale, lease, assignment, etc. Future performance contracts do not include contracts for the supply of goods or services under a credit agreement if the goods or services have been supplied, and do not cover timeshare contracts. The ''Business Practices and Consumer Protection Act'' regulates future performance contracts.

	==== Guarantees ====		==== Guarantees ====

Drew Jackson: /* Estimates */

2018-10-11T12:14:32Z

Estimates

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	==== Estimates====		==== Estimates====
	'''Estimates''' are a difficult area of the law. The case law suggests that whether estimates are binding depends on the intention of the parties to the agreement. The interpretation of an estimate can be complicated when the estimate is not for a specific figure, but is given as a range or in descriptive terms such as “standard price”. For a case that considers the principles of law governing estimates, see ''ABCO Diesel Ltd. v. Dolphin Delivery Ltd''. Note also that estimates are addressed in the ''~~[http://canlii.ca/t/84mr~~ Business Practices and Consumer Protection Act]'', section 4(3)(c)(iii).		'''Estimates''' are a difficult area of the law. The case law suggests that whether estimates are binding depends on the intention of the parties to the agreement. The interpretation of an estimate can be complicated when the estimate is not for a specific figure, but is given as a range or in descriptive terms such as “standard price”. For a case that considers the principles of law governing estimates, see ''ABCO Diesel Ltd. v. Dolphin Delivery Ltd''. Note also that estimates are addressed in the ''Business Practices and Consumer Protection Act'', [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec4_smooth section 4(3)(c)(iii)].

	==== Future performance contracts====		==== Future performance contracts====

Drew Jackson: /* Statutory rights in contracts */

2018-10-11T12:11:02Z

Statutory rights in contracts

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	==== Implied terms ====		==== Implied terms ====
	A number of '''terms are implied''' in various consumer and credit contracts by statute. For example, certain warranties and conditions are implied in consumer [[Sale of Goods Law\|sales of goods]] and [[Leases\|leases]] under the ''Sale of Goods Act''.		A number of '''terms are implied''' in various consumer and credit contracts by statute. For example, certain warranties and conditions are implied in consumer [[Sale of Goods Law\|sales of goods]] and [[Leases\|leases]] under the [http://canlii.ca/t/84c2 ''Sale of Goods Act''].

	==== Non-waiver of statutory rights ====		==== Non-waiver of statutory rights ====

Drew Jackson at 12:10, 11 October 2018

2018-10-11T12:10:25Z

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	==== Non-waiver of statutory rights ====		==== Non-waiver of statutory rights ====
	A number of statutes say that the additional implied terms or protections given to consumers by that law '''cannot be given up''' by a consumer, even if there is a term in the agreement that says the consumer waives the right to have that protection. That is, the consumer is protected from contracting out of certain rights. These statutes include the ''Business Practices and Consumer Protection Act'', the [http://canlii.ca/t/7vh8 ''Interest Act''] and the ''Sale of Goods Act''.		A number of statutes say that the additional implied terms or protections given to consumers by that law '''cannot be given up''' by a consumer, even if there is a term in the agreement that says the consumer waives the right to have that protection. That is, the consumer is protected from contracting out of certain rights. These statutes include the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''], the [http://canlii.ca/t/7vh8 ''Interest Act''] and the [http://canlii.ca/t/84c2 ''Sale of Goods Act''].

	==== Prepayment rights====		==== Prepayment rights====

Drew Jackson: /* Implied terms */

2018-10-11T12:08:47Z

Implied terms

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	==== Implied terms ====		==== Implied terms ====
	A number of '''terms are implied''' in various consumer and credit contracts by statute. For example, certain warranties and conditions are implied in consumer [[Sale of Goods Law\|sales of goods]] and leases under the ''Sale of Goods Act''.		A number of '''terms are implied''' in various consumer and credit contracts by statute. For example, certain warranties and conditions are implied in consumer [[Sale of Goods Law\|sales of goods]] and [[Leases\|leases]] under the ''Sale of Goods Act''.

	==== Non-waiver of statutory rights ====		==== Non-waiver of statutory rights ====

Drew Jackson: /* Statutory rights in contracts */

2018-10-11T12:07:48Z

Statutory rights in contracts

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	In the past, the party buying the contract wanted to limit the responsibility it had for any problems arising from the performance of the contract (for example, if the merchandise financed was defective). One way to do this was to have the consumer agree to a clause in the contract that they would not raise certain defences against the party who bought the contract (called the “assignee”). This was called a '''cut-off clause''' because it tried to cut off rights the consumer may have had before the contract was assigned.		In the past, the party buying the contract wanted to limit the responsibility it had for any problems arising from the performance of the contract (for example, if the merchandise financed was defective). One way to do this was to have the consumer agree to a clause in the contract that they would not raise certain defences against the party who bought the contract (called the “assignee”). This was called a '''cut-off clause''' because it tried to cut off rights the consumer may have had before the contract was assigned.

	Consumers are now protected against cut-off clauses in certain types of consumer contracts. For contracts governed by the ''Business Practices and Consumer Protection Act'', the law specifically says that consumers have the same rights against an assignee as against the original party who assigned the contract (called the “assignor”). The same protections apply for promissory notes (enforceable promises to repay a debt or loan) governed by the federal ''Bills of Exchange Act''.		Consumers are now protected against cut-off clauses in certain types of consumer contracts. For contracts governed by the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''], the law specifically says that consumers have the same rights against an assignee as against the original party who assigned the contract (called the “assignor”). The same protections apply for promissory notes (enforceable promises to repay a debt or loan) governed by the federal [http://canlii.ca/t/7vd0 ''Bills of Exchange Act''].

	==== Implied terms ====		==== Implied terms ====

Drew Jackson: /* Contracts in writing */

2018-10-11T12:05:46Z

Contracts in writing

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	While the absence of a written document can make proof of an agreement more difficult, there is no general principle that all contracts must be in writing to be enforceable. Generally speaking, so long as all the elements of a contract are present, there is a valid contract.		While the absence of a written document can make proof of an agreement more difficult, there is no general principle that all contracts must be in writing to be enforceable. Generally speaking, so long as all the elements of a contract are present, there is a valid contract.

	That said, some types of contracts '''must be in writing''', under requirements in the statute law (for example, contracts involving real estate). These include the [http://canlii.ca/t/8459 ''Law and Equity Act''] (see the sections on [[Mortgages and Foreclosure~~\|Mortgages and Foreclosures~~]] and the [[Recovery of Goods]]), the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''], the [http://canlii.ca/t/7vd0 ''Bills of Exchange Act''] (see the section on [[Contract Defences]]), and the [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on [[Security Agreements]]).		That said, some types of contracts '''must be in writing''', under requirements in the statute law (for example, contracts involving real estate). These include the [http://canlii.ca/t/8459 ''Law and Equity Act''] (see the sections on [[Mortgages and Foreclosure]] and the [[Recovery of Goods]]), the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''], the [http://canlii.ca/t/7vd0 ''Bills of Exchange Act''] (see the section on [[Contract Defences]]), and the [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on [[Security Agreements]]).

	Where the statute law requires a written agreement, with certain terms specified in the agreement, a person seeking to enforce their rights may be able to get some compensation even if the requirements of the law were not met.		Where the statute law requires a written agreement, with certain terms specified in the agreement, a person seeking to enforce their rights may be able to get some compensation even if the requirements of the law were not met.

Drew Jackson at 13:24, 5 October 2018

2018-10-05T13:24:00Z

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	{{REVIEWEDPLS \| reviewer = [[Alison Ward]]\|date= August 2018}}{{Consumer and Debt Law TOC\|expanded = contracts}}		{{REVIEWEDPLS \| reviewer = [[Alison Ward]] \|date= August 2018}}{{Consumer and Debt Law TOC\|expanded = contracts}}

	A '''contract''' is a legally recognized agreement made between two or more people. The agreement details each party’s obligations and can be enforced in court.		A '''contract''' is a legally recognized agreement made between two or more people. The agreement details each party’s obligations and can be enforced in court.

Elena Renderos at 03:29, 5 October 2018

2018-10-05T03:29:38Z

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	Even if a '''waiver clause''' is not specifically prohibited, consumers may still be able to obtain a remedy for breach of contract if a fundamental aspect of the contract is breached. This issue can arise, for example, in sale of goods transactions governed by the ''Sale of Goods Act''. While consumers cannot waive their rights under that Act in the purchase of new goods, the rights can be waived in the purchase of used goods when those goods are purchased from retail businesses.		Even if a '''waiver clause''' is not specifically prohibited, consumers may still be able to obtain a remedy for breach of contract if a fundamental aspect of the contract is breached. This issue can arise, for example, in sale of goods transactions governed by the ''Sale of Goods Act''. While consumers cannot waive their rights under that Act in the purchase of new goods, the rights can be waived in the purchase of used goods when those goods are purchased from retail businesses.

	The issue most often arises in the sale of used cars. Invariably, a car dealer’s sale contract has a waiver clause. The courts have said in a number of decisions that if the problem with the car is fundamental, the waiver of rights term in the contract will be interpreted very strictly against the seller. Often, the courts ignore the waiver clause and give the consumer a remedy. (See the section on [[Contract Remedies]].) One of the leading cases applying this principle is [http://canlii.ca/t/gbmfq Findlay v. Couldwell] (for more on this case, see the section on [[Unfair or Deceptive Practices]]).		The issue most often arises in the sale of used cars. Invariably, a car dealer’s sale contract has a waiver clause. The courts have said in a number of decisions that if the problem with the car is fundamental, the waiver of rights term in the contract will be interpreted very strictly against the seller. Often, the courts ignore the waiver clause and give the consumer a remedy. (See the section on [[Contract Remedies]].) One of the leading cases applying this principle is ''[http://canlii.ca/t/gbmfq Findlay v. Couldwell]'' (for more on this case, see the section on [[Unfair or Deceptive Practices]]).

	=== Defences to contract claims===		=== Defences to contract claims===

Elena Renderos at 03:28, 5 October 2018

2018-10-05T03:28:49Z

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	The word '''warranty''' has at least two very different meanings in law. To consumers, it usually means a contractual promise that a seller makes about the quality of the goods or services sold. Under the law, a warranty is a broad label given to terms of a contract that are the non-essential terms of the contract. Sometimes the parties specifically define which terms are contract warranties, and sometimes the law (for example, the ''Sale of Goods Act'') implies which terms are contract warranties. More likely, the contract is silent on categorizing terms in this manner.		The word '''warranty''' has at least two very different meanings in law. To consumers, it usually means a contractual promise that a seller makes about the quality of the goods or services sold. Under the law, a warranty is a broad label given to terms of a contract that are the non-essential terms of the contract. Sometimes the parties specifically define which terms are contract warranties, and sometimes the law (for example, the ''Sale of Goods Act'') implies which terms are contract warranties. More likely, the contract is silent on categorizing terms in this manner.

	This broad categorization can be important when there is a breach of the contract, as there are different remedies for breaches of contract warranties, as distinguished from other types of contract terms (such as contract conditions, discussed above). This is explained in the section on Contract Remedies.		This broad categorization can be important when there is a breach of the contract, as there are different remedies for breaches of contract warranties, as distinguished from other types of contract terms (such as contract conditions, discussed above). This is explained in the section on [[Contract Remedies]].

	==== Estimates====		==== Estimates====