Difference between revisions of "Contracts for Sale of Goods (11:III)"

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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 ''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(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 <u>''Messenger v Green'', [1937] 2 DLR 26 (NSSC)</u>. 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.
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