Sales of Goods Act

Contracts are an essential part of our everyday lives.  In fact, we often enter contracts mindlessly and do not register that we entering into an agreement for instance, when we pay for our groceries. There are various acts that outline contractual agreements in various scenarios.  This post will outline some of the essential aspects of the Sales of Goods Act.

My objective is to inform individuals of their rights as means to better protect their interests. The Sales of Goods Act applies to cases involving a contract for the sale of goods of a value that exceeds $40.00. In order for the contract to be enforceable, it must be writing unless:
1. The buyer accepts all/some/part of the goods. If the buyer accepts part of the goods it makes the contract binding as part of the exchange has been completed.

2. The buyer gives something in “earnest” to bind the contract. The term “earnest” implies the idea of giving something with sincerity and with serious intent to reinforce the contract.

3. The buyer makes partial payments on the contract. If the buyer has made partial payments on the contract the contract once again become enforceable.

This principles is similar to the principle one except the exchange is monetary rather in goods. The Sales of Goods Act applies only to goods (land, money, stocks and other non-tangible things are not included)

Part 1 of this act discusses the formation of a contract.

Section 13 outlines – implied conditions and warranties into all agreements for the sale of goods in Ontario. It also outlines

  • The condition that the seller had the RIGHT to sell the goods. If the seller did not have the right to sell the goods, the contract is void.
  • Warranties that the buyer will have quiet possession and the goods will be LIEN FREE. This implies that the seller will not be interfering with the buyer’s use of the product.
  • The choice to contract out of two above-noted points

Section 14– Implies the condition that if the goods were sold by description, they must correspond to the description. This means if you buy a product based on a specific description, then the product should reflect that description when purchased. If the product does not coincide with the advertised description you have grounds to challenge the contract and ask for a refund.

Section 15 – implies two conditions

  1. Where the goods are required for a purpose that is made known to the seller and the buyer relies upon the seller’s advice, there is a condition that the goods will be fit for that purpose (compliance).

    Scenario: You would like to buy product x from a seller and convey to the sellers that you require their advice regarding the product to make an informed decision. The seller gives you advice regarding the product and informs you that product can perform tasks a, b and c which you need it to perform. You then purchase the product based on this information.  Legally speaking, the product should perform those tasks; if not, then you have a case and ask for a refund.

  2. Where the goods are sold by description there is an implied condition the goods will be of merchantable quality.

Scenario: You buy something online based on the picture provided. When you receive the product, the product is damaged or of insufficient quality. Based on this scenario, you can ask for a refund. If the seller refuses to give you a refund you may start an action.

Section 16– implies a condition that where the goods are sold by sample that the goods must correspond to the sample.

These are the most important sections outlined in the Sales of Good Act. If you have any questions please send me a personal message on The Social Paralegal Facebook page If you believe you have a case, you may contact a paralegal to assist you with your matter.

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