Chapter 21: The sale of Goods

• the two types of contract of sale are Ownership transferred immediately and Transfer of ownership takes place at a future time, or subject to fulfillment of a condition (agreement to sell)
• Title: Ownership of the goods
• •Transfer of title (ownership of the goods):

  • Represents agreement to transfer property in the goods to the buyer
  • Title normally goes with possession
  • Sale of Goods Act determines when title passes (5 rules)
• Contractual duties of the seller

  •Sale of Goods Act permits parties to insert any terms or conditions they wish into contract of sale

  • Seller obliged to comply with these terms
  • If not specified, Act implies certain obligations in terms of warranties and conditions of the goods:

  ○Condition: essential term of a contract; if breached, entitles innocent party, if he or she chooses, to treat breach as discharge

  ○Warranty:  minor term in contract of sale; breach of the term would allow injured party damages, but not rescission of agreement