Sale of Goods

Question 1

What does the Sale of Goods statue mean? (summarized)

Answer 1

Definition: All contracts for SOG w value of $50 upwards shall not be enforceable by court action unless:

• buyer shall accept part of the goods so sold and actively receive the same
• give something in earnest by bind contract
• unless some note or memorandum in writing is made on the contract and signed by party to be charged on his agent of behalf

Question 2

Example: : young couple came to saskatoon one day during summer looking to buy a trailer on wheels. Because it was a surface trailer sitting on wheels, it was personal property. They saw a trailer for sale on Friday, they went out there and negotiated the purchase with the seller. Deal was that they would buy the trailer for $18,000 cash and they would be able to move into the trailer anytime on Sunday after 2pm. Buyers said they would go to the bank and get a certified check for $18,000. Gave him the check. It was the buyer who said to the seller, when can we move into the trailer. On Saturday night, the seller and his wife were away at a party that evening, and the trailer burned to the ground.

Question is, who owns the trailer on Saturday night?

Answer 2

Answer: The buyer is considered the owner of the trailer.

Question 3

What are the main differences between ownership and posession?

Answer 3

Answer: Ownership IS the risk of loss as it is legally considered your tittle. Possession can be temporary and is not held as a the legal standard.

Question 4

What is the Sale of Goods Act? Give a comprehensive definition

Answer 4

• Statue
• Every time you buy or sell personal property
• Has to deal with monetary
• Look back on the SOG rule; what are the exceptions?

Question 5

What are the two elements of goods?

Answer 5

• Element of ownership

- Element of possession

Question 6

What is it called when the contract is made during the transfer or goods?

Answer 6

Sale

Question 7

What is it called when there is talk about the future of transferring goods?

Answer 7

Agreement for sale

Question 8

What are the two categories for sale?

Answer 8

1. Provides the ownership transfer from seller to buyer the moment the contract is made
2. Seller will transfer the ownership at some future time?

Question 9

What are defines the sale of goods?

Answer 9

1. Seller’s obligation is to transfer the title

2. Buyer to pay

Question 10

Who has ownership in a sale?

Answer 10

1. In a sale, when the contract is made, the buyer becomes the owner. Has risk of loss
2. Agreement for sale. seller has risk as the contract has not been executed

Question 11

What does the Sale of Goods Act say about the nature of goods?

Answer 11

The nature of goods must be looked at in order determine if it is a sale or agreement for sale. It puts it into two categories

Question 12

What are the two categories of goods under the Sale of Goods Act

Answer 12

1. Specific - Mentally put a finger on it (identifiable characteristics)
2. Unnscertaiend - unidentifiable (anything to be produced or made)

Question 13

What does the Sale of Goods Act say about unascertained goods? Also, is it considered sale or agreement?

Answer 13

1. No goods shall pass from seller to buyer unless and until the goods become specific
2. Agreement for sale bc ownership will pass form seller to buy at some future time since they cannot have a transfer (specificity is a pre-requisite to transfer so transfer hasn’t happened yet)

Question 14

What does the Sale of Goods Act say about specific goods?

Answer 14

1. Title is transferred to the buyer when the parties intend it to be transferred

Question 15

What is a silent deal (unspecific ownership)?

Answer 15

• Happens when we only talk about possession in the contract, and not about ownership
• When there is no clear sign of ownership, statue is appliacble

Question 16

What are the 3 rules of ownership?

Answer 16

1. During an unconditional contract for sale of specific goods and a deliverable state, the title in the goods passes from the seller to the buyer the moment the contract is made, payment or the time of delivery or both be postponed doesn’t matter
2. During a contract for the sale of specific goods and the seller is bound to do something to the foods for purpose of putting them in deliverable state, ownership in the goods does not pass from the seller to the buyer until thing be done and buyer notices
3. In a contract for the sale of goods in a deliverable state, but seller is obligated to weigh, measure, test, count, or some other actor thing with reference to the goods for the purpose of ascertaining the price. Title/ownership does not pass until it’s done and the buyer notices

Question 17

When are you entitled to possession?

Answer 17

• Look at contract

- If absent, payment in full is considered ownership

Question 18

Who is responsible for delivery

Answer 18

• Look at contract

- If absent, place of business

Question 19

Is a contract enforceable if there is a house for sale and a buyer puts deposit down?

Answer 19

1. No, contract is not valid or enforceable

2. Only evidence a contract exists

Question 20

What are three ways a contract for the sale of goods is enforeceable?

Answer 20

1. Accepted and received goods or part of them
2. Part payment
3. Some noted and or memorandum as writing signed by person to be charged