Question 1 Explain when risk transfers to the buyer in a sale of goods transaction and explain the exceptions to the rule. Explain when title transfers to the buyer in a sale if goods transaction....

Commercial Law Assignment 3
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Question 1: Explain when risk transfers to the buyer in a sale of goods transaction and
explain the exceptions to the rule. Explain when title transfers to the buyer in a sale if
goods transaction.

Answer 1: An agreement to sell is an agreement in which the title does not transfer immediately
at the time when sale agreement is in progress. The Sale of Goods Act also applicable to the
goods future transfer. Sale of Goods Act says that the person who has the title the responsibility
of risk associated with the good, also in the case of destruction, unless both the parties mutually
agreed otherwise.
C.I.F contracts: In the case of CIF (cost, insurance, and freight) contracts it is not important
when title is transfe
ed. because someone is responsible to bear full cost incu
ed in the shipping
of that goods. this party is also responsible to a
anging proper insurance, in case if anything
goes wrong in between this time period.
F.O.B contracts: In the case of FOB (free on board) contracts both the parties mutually agreed
that in the transportation process the seller will bear the whole risk associated with the goods
until a it reaches some specified point. example, the delivery place is loading dock of sellers
office, the buyer has to bear full risk from that point.
C.O.D contracts: In the case of COD (cash on delivery) contracts the seller has to maintain
title, control, proprietary rights as well as the full possession of that goods until good has not
eached to the buyers place and get paid for that. in this case total risk is associated with the
seller till delivery of the good in buyers place.
Bills of lading: Bill of lading is basically a receipt or document which a transporter give to
seller of goods. given by the transporter or ca
ier of the goods to the shipper as a form of
eceipt.
In the Sale of Goods Act These are rules for determining who has title.
Rule 1: in case of unconditional contract for the goods ready to deliver, the risk passes to the
uyer when the contract made. time of delivery, payment all things are immaterial.
Rule 2: when seller is promised to do something to the goods. the title doesn't pass until it is
made.
Rule 3: when there is a contract in which seller has promised to test, measure or want do some
other act the title does not pass until buyer has notice these things.
Rule 4: in case of goods has delivered to the buyer on his acceptance the title passes to them.
Rule 5: in case of future goods unconditionally appropriated to the contract by both the parties,
the title passes to the buyer after appropriation is made.
Question 2: The Sale of Goods Act imposes terms relating to goods matching samples or
descriptions and meeting standards of fitness, quality, and title. Explain the nature
of these implied terms and their effect on the parties. Determine which conditions
are and which are wa
anties and explain the effect of this distinction. Explain the
effect of exemption clauses in the purchase agreement which states “that there are
no implied terms, and that the only terms are those contained in the agreement.”
Answer: Sample: sample play an important role in purchasing of goods. it is also applicable in
ulk of goods they must match with sample shown and have no defects. mostly retailers and
manufacturers try to ove
ide to the act, those wa
anties have exemption limit their liability
Description play a very important role in sale and purchase of goods. example of description are
catalogue, mail order, picture with text. Sale of Goods Act says that goods delivered must
match the goods sold with description.
The Sale of Goods Act says That the goods sold should be without any defect. in this case if the
sample has been inspected readily clear in examination. in other words we can say that the
quality of good should be same as buyer want to purchase in the particular price.
it is very common when buyer totally rely on sellers recommendation in purchasing some goods.
in this condition the requirement of buyer must be fulfilled. it is the responsibility of seller to
satisfy the buyers need.
According to the SGA, seller says that there is right to sell the goods. in other words these are the
wa
anties applicable in damage. buyer will also get the power to terminate the contract get
compensation.
Wa
anty is a simple form of the contract and the condition is an essential form of the contract.
wa
anty is associateed with the Breach of a term. in case of
each of a wa
anty the party who
suffered can claim for the damage.
There is so many other important term in the Sale of Goods Act. when the price is not stated i
the good then the appropriate price must be paid for the product. delivery must be on time. when
the delivery is treated as a condition it should be maintained. if low or high amount of good is
delivered then the parties have right to reject the order.
Question 3: Describe, in detail and naming the statutes, the methods outlined in federal and
provincial consumer protection statute to control businesses with a tendency to abusive
practice. Discuss the effectiveness of these tactics.
Answer: Competition Act is very important in the market. it reduces unfair pricing strategy. this
act also play an important role in to prohibit some anti competitive practices. These practices
include misleading advertisement, in case of bid rigging, in case of deal, exclusive deals. there
are so many rules and regulations are available to prevent the buyer from bad and dangerous
product. the Food and Drugs Act control the cosmetics, drugs, and foods not good to
consumption. this act also prohibit the misleading advertising, labeling or the sale.
This act also prevent consumer from hazardous product, they have proper control manufacturing,
import and selling. for example in Canada there is lots of dangerous products are no allowed.
while the other dangerous products are allowed.
This act also very important in the analysis, enforcement provisions and inspection. the main
aim of these legislation are to provide co
ect information to the consumer so that they can select
est good from their requirement
Question 4: Discuss the remedies available to the buyer and the remedies available to the
seller when there is a default in a contract to which the Sale of Goods Act applies.
Answer: The main purpose of SGA to give remedies for the seller. it totally depend on the
condition like sometimes seller want monetary damages and in some cases they want to sell the
good to cover the loss.
Until the price has been paid for the good the seller has right to reject to give goods to the buyer.
in other words we can say that the good is the indication of the payment. once the seller give the
possession to the buyer he cannot retake possession. in case of insolvency, the seller has right to
cancel his order and stop the delivery of the good. if within 30 days buyer become bankrupt, then
the seller has some power to obtain possession of the goods. in this case the seller get right to
esale the product.
In this contract seller has right to resale. if the seller is not able to recover his full price from the
uyer, or the buyer is not able to pay the amount of seller, seller has full power to resale his good.
most important thing in this contract is seller can only claim for the earlier selling price, he
cannot get more than original price. seller can also claim for cost associated with the reselling of
that good.
When the buyer receive the title of the good, unpaid seller has right to claim for the price or the
uyer reject the good. in this case SGA cannot help the buyer. in case of
each of wa
anty that
uyer must fulfill the contract, he can only claim for the loss incu
ed in damages.
Question 5: Discuss the differences and similarities of the PPSA and the Bank Act
egarding secured transactions, including types of property, methods of securing the
transaction, enforceability, and priority.
Answer: In the jurisdiction of Canada Personal Property Security Act (PPSA) is very popular. as
security it provides good help to the use of personal property. The Personal Property Security
Act (PPSA) is slight difficult than earlier legislation, the reason behind it uses single set of rules
and the earlier legislation were covering tangible and intangible property both, also there was so
many other ways of security.
The PPSA also play an important role in license, bonds, ...