Exam 16: Sale of Goods

What is a Bill of Lading and what is its purpose?

Hugo agreed to purchase all the oil contained in a tank for $1 per litre. He paid a deposit of $400 and agreed to participate in measuring the quantity contained by the tank. While Hugo and the owner of the tank were walking towards the tank with the measuring equipment the tank burst and the oil was totally lost. The owner's records indicated there were 962 litres in the tank. Who had title to the spilled oil?

Jack viewed a 1995 Mustang on the lot of Tim's Quality Autos Ltd. (Tim's). Jack approached Tim's and enquired about purchasing a vehicle. On January 5th, Jack signed a purchase agreement with Tim's to purchase the vehicle. a. Tim's was required to fix the lock on the driver's door before delivering the vehicle to Jack. They then did fix the lock and notified Jack the car was ready. However, just prior to Jack's picking up the vehicle it was mysteriously damaged. Who is responsible to fix the damages as between Tim's and Jack? b. If the agreed upon purchase price for the vehicle was $9,000 and Jack paid a $5,000 deposit when the agreement was signed and thereafter discovered that the vehicle was encumbered with a $6,000 chattel mortgage, what courses of action are available to Jack and what is the best one?

Brandy bargains with Keller Inc. to purchase a lot of land in downtown Chilliwack. This transaction is NOT subject to

Under the Sale of Goods, when a person possesses goods, he is also the owner of the goods.

Caveat emptor is a worthwhile argument for the seller when

Distinguish between a sale and an agreement to sell.

All of the following are characteristics of a straight bill of lading with the EXCEPTION of the following statement:

William Cheshire delivered an order of lighting fixtures to Bright Lighting Ltd. along with an invoice for $1,200. The invoice specified that payment was due in 10 days. William was not paid and now wishes to recover his goods. Discuss his rights and remedies as against Bright Lighting Ltd.

Is there any difference between unascertained goods and future goods? Explain.

A sanction intended to compel acceptance upon delivery of goods is called a

What type of a sale of goods is subject to an implied condition that the goods shall be of merchantable quality and under what circumstances is that implied condition avoided by the seller?

Shannon Smith sold her 1993 Toyota to Doris Night on February 3, 1998. On the contract of sale, which both signed, she put the words "as is". Doris had test driven the car with Shannon present on February 1, and had commented on a rattle in the front- end and some noises in the transmission. Shannon replied to those inquiries as follows: "I think the rattle is from a loose heater cable and I know there are no transmission problems." On February 5, 1994 Doris telephoned Shannon and advised her that the car was inoperable because the transmission had seized up and Doris wanted to know what Shannon was going to do about it. That evening in the bar Shannon told her friends the above and they had the following comments and advice: a. Don't pay any attention to Doris, caveat emptor applies. b. Since the car has been delivered the contract is discharged by performance. c. Since you allowed Doris to examine the car and test drive it the transmission failure is solely Doris' problem. d. You shouldn't have said anything about the transmission but because you did you must fix the car or take it back and refund the purchase price.Shannon does not know what to do and asks for your advice. Comment on each of the (a) to (d) above with respect to the legal basis for each comment and its accuracy. Express your opinion of the liability (if any) of Shannon.

The vendor's remedy of lien only exists in certain circumstances. List three circumstances in which a contract of sale creates a right of lien for the seller.

Albert sells collectibles. He received a telephone call from Penelope White who was looking for cranberry glass. Albert advised her that he had several sets of cranberry glass. After describing them to her over the phone, she agreed to purchase them. He shipped them to Penelope and when they arrived she refused to accept them. What remedies, if any, is Albert entitled to?

An agreement to sell is one in which the seller agrees and transfers property to the buyer.

A sale is the same as an Agreement to Sell.

The definition of "chattels" includes all but one of the following:

Caveat Emptor means "let the buyer beware" and functions to limit the liability of sellers. However, it is not a rigid rule. An example of a seller NOT being able to use this defence would be if

Star Implement Ltd. sells farm machinery in Weyburn, Saskatchewan. Bill Hogshead of Rosetown purchased a tractor from Star for $27,500. He paid $900 down with the balance to be paid when the tractor was ready for shipment. Star Implement heard of a large truck heading to Rosetown with empty space large enough to accommodate the tractor. So wanting to be of good service (and before any additional payment was made), Star hurried up and placed the tractor on the truck. But when they phoned Bill to tell him the tractor was on its way, his wife answered and advised that Bill had gone to Regina to initiate bankruptcy proceedings. What remedies does Star Implement have in respect to the contract of sale?