2,553
edits
Difference between revisions of "Sale of Goods Law"
From Clicklaw Wikibooks
no edit summary
| Line 9: | Line 9: | ||
== Summary of the law== | == Summary of the law== | ||
Many common-law principles of contract (see the Contracts Overview) were developed in Britain during the 1800s. In some instances, those principles were codified into statute law by the British parliament. One important area of the common law of contract that was codified was the sale of goods law. BC’s present [http://canlii.ca/t/84c2 ''Sale of Goods Act''] was modelled after the British law. | Many common-law principles of contract (see the [[Contracts Overview]]) were developed in Britain during the 1800s. In some instances, those principles were codified into statute law by the British parliament. One important area of the common law of contract that was codified was the sale of goods law. BC’s present [http://canlii.ca/t/84c2 ''Sale of Goods Act''] was modelled after the British law. | ||
The ''Sale of Goods Act'' covers the sale of '''chattels''', which are personal, moveable possessions. Amendments to the Act extended its coverage to some '''leases''' as well. (In a lease, the “lessor” is the person who leases the goods to the consumer; the consumer is known as the “lessee”.) Portions of the ''Sale of Goods Act'' cover sales or leases between retailers and consumers (for example, when a consumer buys a car from a dealership), and some portions cover sales or leases between consumers themselves (for example, when a consumer buys a car from another consumer who is not in the business of selling cars). Sale of goods contracts do not have to be in writing to be protected by the ''Sale of Goods Act''. | The ''Sale of Goods Act'' covers the sale of '''chattels''', which are personal, moveable possessions. Amendments to the Act extended its coverage to some '''[[Leases|leases]]''' as well. (In a lease, the “lessor” is the person who leases the goods to the consumer; the consumer is known as the “lessee”.) Portions of the ''Sale of Goods Act'' cover sales or leases between retailers and consumers (for example, when a consumer buys a car from a dealership), and some portions cover sales or leases between consumers themselves (for example, when a consumer buys a car from another consumer who is not in the business of selling cars). Sale of goods contracts do not have to be in writing to be protected by the ''Sale of Goods Act''. | ||
The ''Sale of Goods Act'' is an important law for consumers because it provides many rights and remedies. It does this in two main ways: | The ''Sale of Goods Act'' is an important law for consumers because it provides many rights and remedies. It does this in two main ways: | ||
* The Act deems that many rights are part of a sale of goods contract, regardless of what the parties have (or have not) agreed on. These are called “implied terms”. These terms cover the quality of the goods sold and the seller’s right to sell the goods. Regardless of whether anything is said when a sale is made, or even if, in some instances, the seller specifically says that the ''Sale of Goods Act'' does not apply to the transaction, it is likely that the Act does apply.
| * The Act deems that many rights are part of a sale of goods contract, regardless of what the parties have (or have not) agreed on. These are called “implied terms”. These terms cover the quality of the goods sold and the seller’s right to sell the goods. Regardless of whether anything is said when a sale is made, or even if, in some instances, the seller specifically says that the ''Sale of Goods Act'' does not apply to the transaction, it is likely that the Act does apply.
| ||
* The ''Sale of Goods Act'' gives consumers certain remedies if the seller breaches the rights given under the Act. The Act talks of rights that are “conditions” and rights that are “warranties”. In very general terms, conditions are seen as the most important basic rights of the contract, while warranties are seen as less important collateral rights. The distinction can be important for the type of remedy (see the section on Contract Remedies) available to the buyer. In general, breaches of conditions may allow consumers to get out of the transaction altogether (that is, return the goods and get their money back), while breaches of warranties usually allow consumers only to recover damages (that is, get some compensation for the defect in the goods).
| * The ''Sale of Goods Act'' gives consumers certain remedies if the seller breaches the rights given under the Act. The Act talks of rights that are “conditions” and rights that are “warranties”. In very general terms, conditions are seen as the most important basic rights of the contract, while warranties are seen as less important collateral rights. The distinction can be important for the type of remedy (see the section on [[Contract Remedies]]) available to the buyer. In general, breaches of conditions may allow consumers to get out of the transaction altogether (that is, return the goods and get their money back), while breaches of warranties usually allow consumers only to recover damages (that is, get some compensation for the defect in the goods).
| ||
It is difficult to generalize about all the rights given by the ''Sale of Goods Act''. Considerable case law has interpreted many sections of the Act and refined the meaning of those sections. The relevance of a section to a particular transaction often depends on the specific facts of the transaction. Also, there are differences in how or whether the Act’s protection applies to transactions. For example, some protections apply to both business-consumer transactions and consumer-consumer transactions, while other protections apply to only business-consumer transactions. | It is difficult to generalize about all the rights given by the ''Sale of Goods Act''. Considerable case law has interpreted many sections of the Act and refined the meaning of those sections. The relevance of a section to a particular transaction often depends on the specific facts of the transaction. Also, there are differences in how or whether the Act’s protection applies to transactions. For example, some protections apply to both business-consumer transactions and consumer-consumer transactions, while other protections apply to only business-consumer transactions. | ||
| Line 25: | Line 25: | ||
=== The goods are free from encumbrance=== | === The goods are free from encumbrance=== | ||
Under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-410/latest/rsbc-1996-c-410.html#sec16_smooth section 16(c)] of the ''Sale of Goods Act'', an implied condition of the contract is that the seller (or lessor) promises there are '''no charges or encumbrances''' on the goods by any third party. Examples of charges or encumbrances include repairers’ liens and security agreements over the goods registered under the [http://canlii.ca/t/8495 Personal Property Security Act]. Again, this protection usually applies to consumer-consumer sales (or leases) for both new and used goods, and always applies to business-consumer sales (or leases) for both new and used goods (retail waivers being void under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-410/latest/rsbc-1996-c-410.html#sec20_smooth section 20(3)]). | Under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-410/latest/rsbc-1996-c-410.html#sec16_smooth section 16(c)] of the ''Sale of Goods Act'', an implied condition of the contract is that the seller (or lessor) promises there are '''no charges or encumbrances''' on the goods by any third party. Examples of charges or encumbrances include [[Repairers’ Liens|repairers’ liens]] and [[Security Agreements|security agreements]] over the goods registered under the [http://canlii.ca/t/8495 Personal Property Security Act]. Again, this protection usually applies to consumer-consumer sales (or leases) for both new and used goods, and always applies to business-consumer sales (or leases) for both new and used goods (retail waivers being void under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-410/latest/rsbc-1996-c-410.html#sec20_smooth section 20(3)]). | ||
=== The goods are reasonably durable === | === The goods are reasonably durable === | ||
