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Difference between revisions of "Contracts for Sale of Goods (11:III)"
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Contracts for Sale of Goods (11:III) (view source)
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The ''SGA'' applies to transactions that can be characterized as contracts for the sale of goods. Any transaction that is not for the sale of goods does not receive the benefit of the ''SGA''. Hence, the subject matter of the transaction must be goods and the essential elements of a contract must also be present. | The ''SGA'' applies to transactions that can be characterized as contracts for the sale of goods. Any transaction that is not for the sale of goods does not receive the benefit of the ''SGA''. Hence, the subject matter of the transaction must be goods and the essential elements of a contract must also be present. | ||
=== 1. Goods === | |||
Goods include all personal chattels, other than “things in action” (e.g. cheques, insurance policies, money). Things attached to real property, which the parties agree to sever before sale, or under the contract of sale, are included (s. 1). Note that registration in the Land Title Office may be advisable to avoid possible characterization of the goods as real property or fixtures, so that the ''SGA'' may apply to the transaction. | |||
According to ss 1 and 9, the ''SGA'' covers '''existing''' and '''future goods'''. Future goods are goods to be manufactured or acquired by the seller after the making of the contract of sale. | |||
According to ss 1 and 6(1), general property or title in the goods must pass – not merely a special property or interest. Thus, for example, a contract of bailment is not covered. | |||
Contracts for skill and labour alone are not contracts for the sale of goods, so the ''SGA'' does not apply to them. However, if a contract is for labour and materials, then the ''SGA'' could apply to the materials (e.g. a contract to paint a house with paint supplied by the contractor). | |||
=== 2. Contract of Sale === | |||
According to s 6(6) of the ''SGA'', a contract of sale includes an agreement to sell as well as a sale. Thus the definition covers conditional sales. | |||
Section 8 provides that the contract may be either written or oral. | |||
According to s 6(1), the ''SGA'' applies only where the purchaser agrees to buy goods with money as consideration. Hence gifts, barters, or exchanges are not subject to the ''SGA''’s implied conditions and warranties. However, a court may avoid this result by finding two separate contracts rather than a barter, as long as the consideration, whether money or goods, has its value measured in monetary terms: see ''Messenger . Green'', [1937] 2 DLR 26 (NSSC). Thus, if a total price is attached, there will be a sale, even if payment is in goods. | |||
=== 3. Lease Contracts === | |||
The ''SGA'' applies to lease contracts if the goods are leased for personal, family or household purposes. | |||
== C. Provisions of the Sale of Goods Act == | |||
Sections 16 – 19 of the ''SGA'' imply many terms into contracts for the sale of new items. Section 20 governs when these implied terms can and cannot be expressly waived by the seller. The ''SGA'' also defines these terms as conditions or warranties, thus defining the remedies available if breached. | |||
=== 1. Implied Conditions and Warranties === | |||
The vital part of the ''SGA'' for the consumer is ss. 16 – 19, which may add statutory conditions and warranties to a contract for the sale of goods, subject to the possibility of exclusion (see [[{{PAGENAME}}#2. Exemption from Implied Contractual Terms | Section III.C.2: Exemption from Implied Contractual Terms]]). | |||
a)Implied Condition of Title: s 16(a) | |||
