6 Special contracts: Sales and consumer protection

The Sale of Goods Act governs matters such as

For the Sale of Goods Act to apply, the following conditions must be present:

The primary purpose of the Sales of Goods Act is to

For the Sale of Goods Act to apply, the following conditions must be present:

isk for loss of the goods follows

Possession of goods does not necessarily entail

Transfer of title and risk when delivery is made by a third party

Cost, insurance and freight (c.i.f.)

Free on board (f.o.b.)

Cash on delivery (c.o.d.)

Bill of lading

Specific goods are

Unascertained goods are

Rule 1
Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment, or the time of delivery, or both, is postponed.

Rule 2
Where there is a contract for the sale of specific goods and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done and the buyer has received notice.

Rule 3
Where there is a contract for the sale of specific goods in a deliverable state but the seller is bound to weigh, measure, test, or do some other act or thing with reference to the goods for the purpose of ascertaining their price, the property does not pass until such act or thing is done and the buyer has received notice.

Rule 4
When goods are delivered to the buyer on approval, or on “sale-or-return” or other similar terms, the property passes to the buyer under the following circumstances:
• when the buyer signifies his or her approval or acceptance to the seller or does any other act adopting the transaction; or
• if he or she does not signify approval or acceptance to the seller but retains the goods without giving notice of rejection, and then, if a time has been fixed for the return of the goods, on the expiration of such time, and if no time has been fixed, on the expiration of a reasonable time, and what is a reasonable time is a question of fact.

Rule 5
Where there is a contract for the sale of unascertained goods by description, and goods of that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the assent of the buyer or by the buyer with the assent of the seller, the property in the goods thereupon passes to the buyer. Such assent may be express or implied, and may be given either before or after the appropriation is made.
If, pursuant to the contract, the seller delivers the goods to the buyer or to a carrier or other bailee (whether named by the buyer or not) for the purpose of transmission to the buyer and does not reserve the right to disposal, he or she shall be deemed to have unconditionally appropriated the goods to the contract.

The five rules

A condition under the sale of goods is

A warranty is a

there are four main areas in which terms will be implied into contracts of sale:

Acceptance causes victims of breach to

Regarding title, it is a condition on the part of the seller that he or she has the right to

Where a contract is for sale by description, there is an implied condition that the goods will

It is implied that goods will be fit for the purpose they were purchased for when the following four criteria are met:

Goods must also be of merchantable quality; in other words

Goods must also correspond with the sample. In the case of a contract for sale by sample, there is an implied condition that

While it is possible to have an exemption clause in a contract, most consumer products in Canada come with a

The law varies somewhat between provinces, but in most jurisdictions a dealer may exempt out of some of the conditions and warranties under the Sale of Goods Act (but never title) if any of the following conditions apply:

The Sale of Goods Act may be exempted for private sales. Without an exemption clause, the Sale of Goods Act

An exemption clause may not apply if there is a

The courts will also not uphold exemption clauses that eliminate any liability where the goods delivered are substantially different from those contracted for, or

An exemption clause will not cover a situation where the buyer has been deprived of

A lien is

If the seller has only delivered the goods to a carrier, the seller may exercise the right of

Under certain conditions, the Bankruptcy and Insolvency Act allows the seller to ask for

A seller may also retain a deposit, if it is

A deposit represents the amount of damages that

down payment is considered the first payment of a purchase, whereas a deposit is a

A buyer may use the remedies available for breach of contract previously discussed, such as

Consumer transactions involve

The mission of the competition bureau is