Sale of Goods Act

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Sale of Goods Act (Alberta)

Alberta’s act is similar to most acts in other provinces. The Sale of Goods Act (SGA) supplements the common law rules for contracts. The SGA essentially codifies the common law exceptions to the common law rule of caveat emptor (buyer beware).

Purpose:
to provide missing terms in contracts for sale of goods when the parties neglected to supply sufficient details themselves

parties can include different terms in their own contract, but things they have left out will be filled in by the implied terms and conditions set out in the SGA

Application:
only applies when goods are being sold
applies to retail / consumer transactions
* “goods”
* tangible items, things you can touch (chattels)
* does not apply to land (real property) or the buildings on the land * does not apply to intangibles either (things you can’t touch, like stocks or bonds) * does not apply to services - where both services and goods interact (example: when a lawyer drafts a will, although the end result is a physical document, it is mostly a service), SGA only applies where primarily goods are being sold

goods must be transferred (the intention must be for the possession and property of the goods to transfer to the buyer)

there must be monetary consideration ( money must be the consideration, the SGA doesn’t cover barter exchanges

sale of goods over $50 must be evidenced in writing to be enforceable * but part performance or part payment will also make it enforceable (such as taking delivery of the goods or paying for the goods)

Important Terms Implied by the SGA:

Who has title:

* Who bears the risk when goods are damaged or destroyed? * the basic principle is that risk follows title, except where there is agreement otherwise * the SGA supplies five rules to determine when title is transferred

Other Implied terms:...
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