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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)
Revision as of 23:57, 5 August 2021
, 23:57, 5 August 2021→B. Determining if the Sale of Goods Act Governs the Contract
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== B. Determining if the Sale of Goods Act Governs the Contract == | == B. Determining if the Sale of Goods Act Governs the Contract == | ||
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 <u>contracts for the sale</u> of <u>goods</u>. 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 === | === 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 | 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 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. | ||
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=== 2. Contract of Sale === | === 2. Contract of Sale === | ||
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 | 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 (which is the value being exchanged in the contract, whether money or goods) has its value measured in monetary terms: see "Messenger v Green", [1937] 2 DLR 26 (NSSC). Thus, if a total price is attached, there will be a sale, even if payment is in goods rather than money. | ||
According to s 6(3) of the SGA, a contract of sale may be absolute or conditional. If the contract is subject to some condition to be fulfilled later, it is called an agreement to sell. | According to s 6(3) of the ''SGA'', a contract of sale may be absolute or conditional. If the contract is subject to some condition to be fulfilled later, it is called an agreement to sell. | ||
Under s 8 of the ''SGA'', it provides that the contract may be either written or oral. | |||
=== 3. Lease Contracts === | === 3. Lease Contracts === | ||
The ''SGA'' applies to lease contracts if the goods are leased for personal, family or household purposes. | 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 == | == C. Provisions of the Sale of Goods Act == | ||