HA N DBO O K

OF T HE L AW O F

S AL E O F G OO D S

JOHN D E L AT RE Fl A L CON B R I D G E , M A . L L .B .
. ,
I l

OF O S G OO D E H A L L , B AR R IST ER -
AT LAW -

A L E CT U R E R TO THE L A W S O C IET Y O F U PP E R C A NA DA
A UT HOR OF BA N KI N G I
A ND B L L S O F E" C HA NG E
A ND THE L A W O F M OR T G A GE S OF R E A L E ST A T E

T ORO NT O
CA N AD A L A W B OOK CO MPA NY L I MITE D
,

1921
 i h
C o p y r g t ( Ca n a d a ) 1 9 2 1 by
, ,

J O H N DE L A T RE F A L C O N B R I D G E
‘

3 2 4— 65 2 .
l a— af fq
m y

Prin t e d b y

C. A. Go o d fll
e ow S on
Wh i t b y ,
O nt.
 PRE FA CE .

The S ale of G ood s Act 1 89 3 by which the l aw rel atin g

, ,

t o the s ale of g ood s was c odified in the Unite d Kin gdom ,

h as now be en a dopted with s li ght modific ati on s in al l the

, ,

pr ovince s of C an ad a except Quebe c the proce s s of adopti on,

h aving been c ompleted by the en actment in Ont ari o of the

S ale of Good s Act 1 9 2 0 P ri or t o the a dopti on of the s t at
, .

ute there exi s te d e s peci ally in Ont ari o a c on s ider able b ody
, ,

of c as e l aw Thi s c as e l aw i s of c our s e now auth orit ativ e

only s o f
.

ar as it i s c on s i s tent w ith the s t a tute ; but for the

'

mo s t p art they ar e in ac c ord with e ach other an d the de ,

c i s i o n s furni s h u s eful illu s tr ati on s of the s t a tute .

The arr an gement of the s t atute i s followed in the m ain ,

but in s ome re sp ect s the s cheme of the b ook h as nece s s it ate d

s ome ch ange in the orde r of the s t atutory provi s i on s The
de s i gn of
.

the b ook i s to m ake the s t atute more re adily av ail ~

able an d more u s eful in C a n a d a a n d reference s ar e given

,

to a rel atively l arge numb er of re cent E n gli s h an d C an adi an

c as e s The alph abetic al index i s s upplemente d by an unu s
.

u al l y full t able of c ontent s a n d the c omp a r a tive t able of

,

s e cti on number s will it i s h oped en able a re a der re a dily t o

, ,

c omp are the s t atute in f o rce in one province with th at in

force in an y other province or i n the Unite d Kingdom .

B enj amin on S al e s i s cite d with re ferenc e to the fifth

edition an d Ch almer s on the S ale of Go od s Act with

reference t o the s eventh editi on the new editi on s n ot

being proc ur able in thi s country until a fter thi s b oo k w as
wh olly prep ared for the pre s s .

Attention i s dr a wn in the c our s e of the b o ok t o the chief

di f ference s between the provi s ion s of the S ale of Good s Act
an d th o s e of the Uniform S al e s Act w hich i s in force i n
,

m any p art s of the United St ate s .

J D F. . .

M arch 1 9 2 1
, .
 COM PARATI VE TABL E OF S E CTI ONS .

A l t a= C. O. N . W . T . 1 8 9 8 , c . 39
B . C.=R . s . B . C . 1 9 1 1 ,
’

c . 2 03
M an = R S M 1 9 1 3, c 1 7 4
. . . . .

N. B = S t at u t es of
. 1 919, c . 4
N. of 1 9 1 0, c . 1
On t .= S t at ut es of 1 9 2 0, c . 40
P.E .I = S t at ut e s of
. 1 91 9, c . 11
S as k =R S S 1 9 0 9 c 1 4 7
.
-
. . .
,
.

U K =5 6 5 7 V c 71
. . . .

A lt a. P .E .I .
N .B . S a sk c

64 1
62 ( U . K.) 2
t

l
— 3
w 4
o
o

h
n
o
a
c

q
o
o

o
c

10
11
12
13
14
15
16
17
20 18
21 19
22 20
23 21
24 ( Ont .)
22
25 ( On t )
24
25 ( M a n .) 2 4
C O M PA RA TI V E T A B L E O F S E CTI O N S

U .K . P .E .I .
N .B .
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41 39
42 40
43 41
44 42
45 43
46 44
47 45
48 46
49 47
50 48
51 49
52 50
53 51
54 52
55 53
‘

56 54
57 55
58 56
59 57
61 72 , 1 5 7
 TA BL E O F CO NTE NTS

( Th e s ection reference s in br a c ket s rel ate t o t he s e cti o n s of

the Ont ari o S ale of Good s Act )

Pref ac e
Comp ar at i v e Tab l e o fS e c ti o n s

Tabl e o fC
ases

Introd uc ti o n .

C odific ati on in the United Kingdom

C odific ati o n in C an ad a
C onference of C ommi s s ioner s on Uniformity of
L e gi s l ation
Adoption of the s t atute in the B riti s h dominion s
C odific ati on in the United St ate s
Conference of Commi s s ioner s on Uniform St ate
L aw s

Ch apt er I . The Contrac t of S ale .

D efiniti on of c ontr act of s ale ( 8 3) .

The p artie s an d their c ap a city

Seller ( 8 2 ).

B uyer ( 8 2 )
C ap acity o f
.

p a rtie s ( s 4 ) .

L un atic s an d drunken per s on s

Inf ant s
N ece s s arie s ( s 4 ) .

The s ubj e ct ma tter of the c ontr a ct

-

Go od s ( s .

E xi s ting a n d future good s ( s 7 ) .

Specific or as cert aine d good s ( 8 2 ) .

Generic or un as cert aine d go od s

D e s tructi on or deteri or a ti on of the good s
( 1 ) B efore the m akin g of the c ontr a ct ( s .

P a rti a l l os s
( 2 ) After the m a king of the contr a ct ( s 9 ) .
 T A B L E OF C O N T E N TS

R es p er i t d o mi n o (s . 22 )
Other c as e s
The c on s ider ati on for the c ontr a ct
The pric e ( s 3) .

B arter or exch ange

M ode s of as cert aining p r ice ( 8 8 1 0 .
,

Ch ap t er I I . Th e S t at ut e o fF raud s .

§ 2 1 F orm alitie s of the c ontr act

.

Ap art from s t atute ( s .

2 2 Se cti on 4 of the St atute of F r aud s

ection 1 7 o f
.

2 3. S the St atute of F r aud s

L ord Te n t e r d en s Act
’

§ 2 4 Th e S ale of Good s Act ( 8 6)

. .

E xe cutory c ontr a ct
C ontr act for w ork an d l ab our
Alter ati on s in l an gu a ge
Or al c ontr a ct m erely unenf orce able
§ 2 6 Accept ance an d rec eipt
.

§ 2 7 E arne s t or p art p aym ent

.

§ 2 8 N Ot e or memor andum in writin g

.

Ch ap t er I I I . Tr an sf er o fth e Prope rty as Bet ween S ell er

an d Buyer .

§ 3l . S ale an d a greement t o sell 30

S ale di sting ui s he d from a gre ement t o s ell ( 8 . 30
C ontr a ct of s ale ( ss 2 3) .
,
30
S ale ( 8 8 2 3)
.
,
30

§ 32 . P r ope rty an d p o ss e s s i on 31
P roperty ( s 2 ) . 31
D elivery ( s 2 ) . 31
Gift of a ch attel 31
S ale with out delivery 31
Gener al a n d s pe ci al property 32
R e s ult s of p as s in g of prop erty 32
Spe cific or as cert aine d good s 33
§ 33.
Specific go od s ( s 2 ) . 33
P rope rty p as s e s when p artie s intend it to p ass
 TA BLE OF C O NT E NT S ix

R ul e sfor as cert aining intenti on ( s 2 0 ) .

Unc ondition al c ontr act

Somethin g t o b e done by s eller
Good s in deliver able s t ate ( s 2 ) .

Su s pen s ive an d re s olutive c o n diti on s

C onditi on precedent or s u spen s ive
D eli very on approv al
C onditi on s ub s equent or re s olutive
Un as cert aine d an d future good s
Un as cert ained go od s
Pr o perty c ann ot p as s until as cert aine d ( s 1 8 ) .

F uture good s ( s 7 ).

P roperty c ann o t p as s at once ( s 7 ) .

Appropri ation of good s t o the c ontr act ( 8 .

R e s erv ati on of ri ght of di sp o s al

H ow ri ght may be re s erved ( 8 2 1 ) .

Ch ap ter I V . Wh o Can Gi ve a Go o d Ti t l e .

§ 4 1. S ale by per s on with out title

E xception s to gener al rul e
Naemo ( l at q uad n on h abe t ( s 2 3)
.

S ale by authorize d a gent

S ale under p ower of s ale
M arket overt
Writ of executi on
§ 42. S ale by per s on with v oid able title ( 8 25 )
D i s tin gui s hed f
.

rom v oid title

Stolen good s
§ 4 3. Tr an s fer of document of title
D ocument of title ( s 2 ) .

B ill of l adin g
W areh ou s e rec eipt
B ill s of L adin g Act
§ 44 . Os ten s ible owner s hip or a gency
§ 45 . Seller or buyer in p o ss e ss i on
Seller in p o ss e s s i on ( s 2 6)
.

B ill s of S ale Act

B uyer in p os s e ss i on ( s 2 6)
.

C onditi on al S ale s Act

 T A B L E OF CO N T E N T S .

§ 4 6 The. F a ct or s Act s
D i s p o s iti on s by merc a ntile a gent s
D i s p o s iti on s by s eller s an d buyer s
Supplement al
4 7. N e goti able document in t h e Un i t e d St a te s
‘

Ch ap te r V . R epre s en t ation s, Conditio n s an d Warr antie s .

§ 5 1 . R epre s ent ati on s 72

St atement s inducing c on s ent but n ot m a de term s 72
R ule s of c ommon l aw apply ( 8 5 8 ) . 72
Mere expre s s ion of opini on 73
F r audulent mi s repre s ent a ti on
Innocent mi s repre s ent ati on
R eme di es ex c ontr actu
R e s ci ss i on
§ 52. C onditi on s an d w arr antie s
Term s of c ontr act
W arr anty de fi ne d ( 8 2 ) .

C onditi on defined
Imp ort ance of the di s tincti on
Que s ti on of c on s tructi on ( s 1 3) .

§ 53 . Stipul ati on s as t o time

Time of p ayment n ot of e s s ence ( s 1 2 )
In othe r re s pe ct s time i s o f
.

e s s en c e
‘

§ 54 . R emedie s for bre a ch of c o n diti on an d bre a ch of

w arr anty
\V a i v e r of bre a ch of c ondition ( s 1 3) .

I n tw o c as e s buyer i s limited t o reme dy as for

bre a ch of w arr anty ( s 1 3) .

R emedy for bre a ch of w arr anty ( 8 5 2 ) .

§ 55 . Implied c ondition s an d w a rr antie s

M ay be ne g ative d by a greement c our s e of de alin g
,

or u s a g e ( 8 5 4 )
.

C onditi on of title ( 8 1 4 ) .

W arr antie s for quiet p o s s e s s ion an d a g ain s t eu

cumbr ance s ( s .

§ 56 . S ale s by de s cripti on an d by s ample

S ale by de s cripti on ( s 1 5 ) .

S ale by s ample ( 8 1 7 ) .
 TA BLE OF C O NTE NT S xi

57. Implied c onditi on s as to qu ality an d fitne s s

C aveat e mp to r '

Fitne s s for p articul ar purp o s e ( s . 1 6)

Merch ant able qu ality ( s 1 6)
Seller s own m anuf
.

acture
’

Ch ap te r VI . D el i v e ry, A c c eptan c e an d P ayment .

§ 61 . D elivery p ayment
an d

D elivery defined ( s 2 )
Obli g ati on s o f
.

p artie s ( s 2 7 )
_
.

C oncurrent c ondition s ( s 2 8 ) .

C i f c ontr act
. . .

62 . M ode an d pl ace of delivery

Seller s pl ace of bu s ine s s or re s idence ( 8 2 9 )
’
.

Unle s s go od s in p o s s e ss ion of third p arty ( s 2 9 ) .

D eliver able s t ate ( ss 2 2 9 ) .

,

§ 63 . Time of delivery
If no time fixed ( 8 2 9 ) .

R e as on able time ( s 2 9 ) .

64 . D elivery of wrong qu antity or in in s t alment s

Wron g qu antity ( s 30 ) .

In s t alment s ( s 31 ) .

§ 65 . Sending of go od s t o buyer
D elivery t o c arrier ( s 32 ) .

R e as on able c ontr a ct with c arrier ( s 32 ) .

No tice t o en able buyer t o en s ure

D eteri or ati on or l o ss ( s 33) .

§ 66. In specti on an d a ccept ance

R e as on able opp ortunity of ex amining ( s .

Accept ance define d ( s 35 )

D if
.

ferent under St atute of F r aud s

Ac cept ance doe s not pre clude cl aim for d a age s m
§ 67 . R efu s al to accept
R i ght of buyer to refu s e ( s 36) .

E fi e c t of re fu s al ( s 37 ) .

Ch ap t er VI I . Ri ght s Agai n st t he Goo d s.

7 1 . P ropriet a ry remedie s of the buyer ,

Conver s ion an d detinue

x ii T A B L E OF C O N T E N T S

§ 7 2 . R i ght s of unp aid s eller .

R e a l ri ght s di s tingui s he d from p er s on al ri ght s .

”
Unp aid s e l ler ( 8 38 )
Imp ort ance o f
.

p as s ing of pr operty
L ien s topp a ge in tr an s itu an d r e sal e ( s 39 )
,
-
.

73 Seller s lien or ri gh t of retenti on

’
.

When ri ght exi s t s ( s 4 0 )

Ef f
.

e ct of p art delivery ( s 4 1 ) .

When ri ght l o s t ( 8 4 2 ) .

§ 74 Stopp a ge in tr an s itu
.

When ri ght exi s t s ( s 4 3) .

D ur ati on of the tr an s it ( s 4 4 ) .

HOW ri ght exerci s e d ( s 4 5 ) .

§ 7 5 S ale or pled ge by bu yer

Ef
. .

fe ct on lien or ri ght of s topp a ge ( s 4 6) .

Tr ans fer of do cument of title

7 6 R e s ale by u
.
-
np ai d s eller
R e s ci ss i on of c ontr act ( s 4 7 ) .

Acti on for deficiency

Ch apt er VI I I . A c t i on s fB
or r e ac h o f
th e Con t rac t .

§ 81 . Action for the pri ce

Go od s s old an d delivere d
Go od s b arg aine d an d s old
When acti on lie s for price ( s 4 8 ) .

§ 82 . D am a ge s for non accept ance

-

M e as ure of d am age s ( s 4 9 ) .

If there i s a m arket
D uty to mitig ate d am a ge s
If there i s n o m arket
§ 8 3. D am age s for n on delivery
-

Me as ure of d am a ge s ( s 5 0 ) .

If there i s a m ar k et
D uty t o miti g ate d am a ge s
P ri ce at d ate of bre ach
D a m a ge s for lo s s of s ub c ontr a ct -

§ 84 . Specific perform ance

C ourt may decre e ( s 5 1 ) .
 TA BLE OF CONT E NTS x iii

§ 85 . D am a ge sfor bre a ch o f w arr anty 14 5

Me as ure of d amges ( s 5 2 )
'

145
Ef f
.

e ct of in s pe cti on an d t aking p o s s e s s i on 14 7
L o s s of s u b c ontr act -
147
Gener al a n d s pe ci al d am a ge s 14 8
8 6 Intere s t or s pe ci al d am a ge s
. 148
Spe ci al d am a ge s ( s 5 3) . 148
H a dley v B axend ale . 149
Intere s t ( s 5 3) . 14 8 1 50 ,

Ch ap t e r I " . S up p l e me n t ar y Pr o vi si o n s an d D efi n iti o n s .
C on s tructi on of a c od e 1 52
Interpret ati on s ection ( s 2 ) . 1 52
Action B uyer C ontr act of S ale D efend ant
— — —

D elivery D oc ument of title F a ctor s Act s

— —

F ault F utur e go od s
—
Good s L i en Pl ai n t i f
—
f — fi

P roperty
I
Qu ality of good s S ale Sell er S p e
— — — —

c i fi c good s W arr anty —

Go od f aith
In s olvent
D eliver able s t ate
E xclu s i on of implied term s ( s 5 4 ) .

R e as on able time ( s 5 5 ) .

R ig ht s enforce able by a ction ( s 5 6) .

S ale by aucti on ( s 5 7 ) .

C omm on l aw an d l aw merch ant ( s 5 8 ) .

C onditi on al s ale s bill s of s ale an d ch attel mortg a ge s

,

(s . 58)
M ortg a ge pled ge or ch arge ( s 5 8 )
,
.

B ankruptcy
R epe alin g s ecti on ( s 5 9 ) .

D ate of c oming int o oper ation ( s 60 ) .

 TA BL E O F C A S E S

A bb o t t v W ol s e y [ 1 8 9 5 ] 2 Q B 9 7
‘

. , . .

A c r aman v M o rri c e 1 8 4 9 8 C . B . 4 4 9
. , ,

Add i so n v Ott awa A ut o a n d T ax i C o

. ., 1 9 1 3, 30 O L R. . . 51 , 1 6
D .L R . 31 8
.

A d o l p h Lum b e r v: M ea d ow Cree k Lumb e r C o 1 9 1 9 5 8 Can

Co . ., ,

S C R 30 6 4 5 D L R 5 7 9
. . . , . . . .

A l a b as t i n e C o v Can a d a Pro d u ce r Co 1 9 1 4 30 O L R 39 4 1 7
., . , . . .

D L R 81 3
. . .

A lli s v W al k e r 1 9 1 0 2 1 M an R 7 7 0
. . .

A meri can R e d Cro s s v G e d d es i n S u p rem e Court o f

, ,

C an a d a 1 2 . , ,

O c t o b er 1 9 2 0 r eve r s in g G e d d e s v A meri c an R e d C r o s s 1 9 2 0
, ,
. ,

4 7 O L R 1 63 5 2 D L R 5 4 7
. . . , . . .

A n d er s o n v M orice 1 8 67 1 A p p Ga s 7 1 3 L R 1 0 C P 60 9 2 3
.
, , . . ,
. . . . ,

R C 30 2
. .

Ang el v J ay [ 1 9 1 1 ] 1 K B 666
. , .

A rm an d v N o o nan 1 9 1 8 4 1 C L R 5 5 1 4 1 D L R 4 33
. , , . . . ,
. . .

A rmi t a ge v I n s ol 1 8 5 0 1 4 Q B 7 2 8
. , ,
. .

A s t ar v Bl un d el [ 1 8 9 6] I Q B 1 2 3
‘

. ,
. .

A tt e n b orough v S o l o mo n [ 1 9 1 3] A C 7 6 . , . .

A uer b ach v N el s o n [ 1 9 1 9 ] 2 Ch 38 3
. , .

A z ema r v C a s ell a 1 8 67 L R
. 2 C F 4 31 67 7 2 3 R C 4 4 0
, , . . , , .

B ail e y v Daws on 1 9 1 2 2 5 C L R 38 7 1 D L R 4 8 7
. , , . . . ,
. . .

B ail e y v S weeti n g 1 8 61 9 C B N S 8 4 3
. , , . . .

B ainto n v H all am . C an S CR 32 5 5 4 D L R 5 37 . . . . . .

af
, . , ,

fi rming Ha l l a ml v B aint on 1 9 1 9 4 5 C L R 4 8 3 4 8 D C R . , , . . . , . . .

1 20 83 ,

B al k i s C t o l i d a t e d C o v T o mp k i n s o n [ 1 8 9 3] A O 39 7 . .
’

. .

B an k o f
,

Briti sh N ort h America v Cl ar k s on 1 8 69 1 9 . 1 82

B an k o f
, ,

En gl an d v V a gli an o [ 1 8 9 1 ] A C 1 07 3 R C 69 5 . ,
. . ,
.

B arb er v M e yer s t e i n 1 8 70 L R 4 H L 31 7 4 R C 7 9 7
. , , . . . , .

B arr v G i b s o n 1 8 38 3 M &W
. , ,
. .

B arry v V an d e n Hur k [ 1 9 2 0 ] 2 K B 7 09
. .

B awl f
,

Gr ain Co v R o s s 1 9 1 7 5 5 Can S C R 2 32 37 D L R
. . , , . . . . ,
. . . 62 0 ,

rever s in g 1 1 Alta L B 2 6 . .

B eam v B eat ty 1 9 0 2 4 C L R 5 5 4
. , , . . .

B e avan I n r e [ 1 9 1 2 ] 1 Ch 1 9 6
, , .

B ee r v W al k e r 1 8 7 7 4 6 L J Q B 67 7
. , , . . . .

B eh n v Bur n es s 1 8 63 3 B & S 7 5 1 6 R c 4 9 2
. , ,
. . , . .

B ehren d v Pro duce Bro k e rs Co [ 1 9 2 0 ] 3 K B 5 30

. .
,
.

B ell v M a cklin ; 1 8 8 7 1 5 Can

. 5 76 , .

B el s i z e M oto r S up p l y Co v Cox [ 1 9 1 4 ] 1 K B 2 4 4 . . ,
.
 T A B L E OF C A S E S xv

B enn ett v S t o d g ell 1 9 1 6 36 C L R 4 5 2 8 D L R 639

. , , . . . ,
. . .

B e n ts e n v T ay l o r [ 1 8 9 3] 2 Q B 2 7 4
. , .

B i d d e l l v Cl e me n s H o r s t C o
. [ 1 9 1 1 ] 1 K B 2 1 4 r e ver s e d [ 1 9 1 1 ] ., . , ,

I K B 9 34 re s tor e d s ub n o m Cl eme n s H o r s t C o v R i d d ell

. ,
. . . ,

[1 9 1 2 ] A. C. 1 8 . 97
Bird v Brown 1 8 5 0 4 E x ch 7 8 6 2 3 R C 4 2 2
. , , . , .

B o eh n er v S mi th 1 9 1 6 4 9 N S R 4 35 2 6 D L R 5 1 1
. , , . . . , . . .

B o o th S teamshi p Co v C ar go Fle e t I ro n Co [ 1 9 1 6] . . ., 2 KB . 5 70
1 2 3, 1 24 ,

B o rthwi c k v Y o un g 1 8 8 6 1 2 O A R 67 1
. , , . . .

B o sto c k v N i ch ol s o n [ 1 9 0 4 ] 1 K B 7 2 5
.
, .

B o sto n B oo k C o v C an a d a L aw B o o k Co 1 9 2 0 4 8 C L R 2 38
. . . . . .

B owes v . 2 A p p Gas 4 5 5 . .

B owma n v Yi el d in g M T 3 V O n t D i g 1 9 0 0 v o l 3 c o l
. , . . ., . . , . , .

Br n n e r v Co n sumers Metal Co 1 9 1 7 4 1 C L R 5 34 4 1 D L R
e . ., , . . . ,
. . .

141
Bri s t o l Tramways C o v Fi at M o to rs [ 1 9 1 0 ] 2 K B 8 31 . . , . 93
Briti sh Co lumb ia e t c Co v N e ttl e shi p 1 8 68 L R 3 C F . . . . . . 1 50
Bri t i s h W es t i n gh o u s e Ele ctric an d M f
, , , ,

g C o v U n d er g ro un d . . .

Ele c tri c R ailways Co [ 1 9 1 2 ] A C 673 . .

Bro wn v Mull er 1 8 7 2 L R 7 E x 31 9 2 3 R C 5 2 7
. , , . . , .

Brown v W al sh 1 9 1 9 4 5 O L R 64 6
. , , . . .

Bruc e v W arwi c k 1 8 1 5 2 M & S 2 0 5 6 T aun t 1 1 8 6 R C 4 3

.
, , . . , . , .

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11 20 D L R
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 x vi T A B L E OF C A S E S

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v C art er [ 1 8 9 3] A C 360
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C l ar k s Cas e R e S ove r e i gn Ba n k 1 9 1 6 35 C L R 4 4 8 2 7 D L R
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253
l ark v W aterl o o M f
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C l a y v Y at es 1 8 5 6 1 H &N 7 3
. , , . .

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Co c hran e v M o o re . ,
1 8 9 0, 2 5 Q . E .D . 5 7 31
Co i n t at v M yh a m . , [ 1 9 1 3] 2 K B . 220; ne w t ri al d ir e c ted , [1 91 4 ]
W N 49 . . 1 50
Co l o v N o rth W e s te r n B an k
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1 875 , LR . 10 C F . 35 4 56 , 62
Co mme rc i al Fi n anc e Co r p orat ion v S tratf ord 1 92 0 4 7 C L R 39 2 . , , . . . 60
C o n f e d e ra ti o n Li f e A s s o c i ati o n v La b a tt 1 9 0 0 2 7 O A R 32 1 . , , . . . . 87
C o nl e y v P at e r s on 1 9 1 2 2 2 M an R 1 2 7 2 D L R 9 4
. , , . . , . . . 28
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. . . , . . . 7
C on s o li d at e d C o v Cur t i s [ 1 8 9 2 ] 1 Q B 4 9 5 2 5 R C 1 61
. . , . , . 114
Co n s o li d at e d Pl at e G l a s s Co v M c K i n n o n D as h C o 1 917 4 1 . . .,
,

1 88, 4 0 D L . R. 47
C op e l an d v H ami lton 1 8 9 3 9 M an R 1 4 3
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C o r b y v W illi am s 1 8 8 1 7 C a n S C R 4 7 0
. , , . . . .

C o ut uri e r v H as ti e 1 8 5 2 5 H L C 67 3 2 3 R C 2 0 4
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Co we r n v N i e l d [ 1 9 1 2 ] 2 K B 4 1 9
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C o x v Bru c e 1 8 8 6 1 8 Q E D
. , 2 4 R C 2 68 , . . . .

Co yne v L e e 1 8 8 7 1 4 O A R 5 0 3
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Cr ai g v B ear d mo r e 1 9 0 4 7 C L R 67 4
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C rom p t o n an d K n owl e s L o om W o r k s v H o ffm an 1 9 0 3 . , , 5 O .L .R

554
Cro s b y v W a d swo rth 1 8 0 5 6 E as t 60 2
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C ud d e e v Rutt e r 1 7 2 0 5 V i n A b r 5 38 p l 2 1 6 R C
. , , . . , . , . 64 0
C ull v R o be rt s 1 8 9 7 2 8 O R 5 9 1
. , , .

Cun dy v Lin d say 1 8 7 8 3 A p p Ca s 4 5 9 6 R C 2 1 1

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.

Cu s a c k v R o b i n so n 1 8 61 1 B & S 2 9 9
. . .

D ani el v T ref
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us i s [ 1 9 1 4 ] 1 C h 7 8 8
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D e rr y v P e e k 1 8 8 9 1 4 A p p Gas 337 1 2 R C 2 5 0
. . .

D ewar v M i n t o f
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t .[ 1 9 1 2 ] 2 K B 373 , .

D i F e rn an d s v S imo n S mi t s Co [1 9 20 ] 3 K B 4 09
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Di c k s on v Z i z i n i a 1 8 5 1 1 0 C E 60 2 2 3 R C 4 9 4
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 i
xvii TA BL E O F OA s E s

Gl yn V E as t an d W e s t I n d i a D o c k C o 1 8 8 2
. ., , 7 A p p . C as . 5 9 1
G o dd ar d V B i n n e y 1 8 7 4 1 1 5 M as s 4 5 0
. , , .

Ge l d i n g D avi s Co E x p art e I n r e K n i ght ., , ,

1 88 0 , 1 3 Ch . D . 62 8
4 R .C . 8 5 1
Grah am V La ir d 1 9 0 9 2 0 O L R 1 1
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G rant V N o rway 1 8 5 1 1 0 G B 665 2 4 R C 2 5 8

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Great W e st I mp l e me n t Co V G ra ms 1 9 0 8 1 A l t a L R 4 1 1 . . , , . . .

Gr e at W e s te r n R y Co v R e d ma y n e 1 8 66 L R 1 C P 32 9 . . . , , . . . .

G rice V Rich a r d so n 1 8 7 7 3 A p p Cas 31 9

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Grind ell v B as s [ 1 9 2 0 ] 2 Ch 4 8 7
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G ro cer s Wh o l e s al e C o v B o s t o c k 1 9 1 0 2 2 C L R 1 30 . . , , . . .

H a dl e y v B a x en d al e 1 8 5 4 9 E x c h 34 1 2 S mith L C 1 2 e d p
. , , . , , , . .

5 34 , 5 R .C . 5 0 2 . 149 150
H all M o t o rs V R o g er s 1 9 1 8 4 4 C L R 32 7 4 6 D L R 639
. 92 , , . . . , . . .

H all am V B ai n to n 1 9 1 9 4 5 C L R 4 8 3 4 8 D L R 1 2 0 affirme d
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. . . , . . . , ,

s u b n om B ai nton V H all am 1 9 2 0 60 Can S C R 32 5 5 4

. . , , . . . . ,

D L R 5 37
. . . 112
H alli d ay v H ol gat e 1 8 68 L R 3 E x 2 9 9 117, , . . .

H an d y v Carruth er s 1 8 9 4 2 5 O R 2 7 9
. 12 , , .

H ans on v M e y e r 1 8 0 5 6 E as t 61 4
. , 36 ,

H arman V Re eve 1 8 5 6 1 8 C B 5 8 6
. , 19 , .

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., . . .

H arri s o n v K nowl e s [ 1 9 1 8 ] 1 K B 60 8
. 73 , .

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. 24 79 82
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i rmi ng 1 1 Sa s k L R 1 32 4 0 D L R 1 69 . . . , . . .

H e a d V T at e r s al l 1 8 7 1 L R 7 E x 7
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H eal e y v H owl ett [ 1 9 1 7 ] 1 K B 337

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H a l l b u t V . B u c kl e t o n , [ 1 9 1 3] A .O 30 .

H ol b y v M atth ews
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H e rtl e V J enn y 1 9 1 5 4 9 N S R 6 D L R 7 4 2
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. . .

Hi c k v R aymon d [ 1 8 9 3] A C 2 2
. . . .

Hi c kman v H ayne s 1 8 7 5 L R 1 0 C P 5 9 8
. , , . . . .

Hill V Rice L ewi s S o n 1 9 1 3 2 8 C L R 366 1 2 D L R 5 8 8

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H o ll i n s V F owl er 1 8 7 5 L R 7 H L 7 5 7 2 R C 4 0 9
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Ho n c k v M ull e r 1 8 8 1 7 Q E D 9 2
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. . .

H o p e ( H enry ) S o ns v Canad a Found r y Co 1 9 1 7 4 0 C L R . , . . .

338 39 D L R 30 8
, . . . 99
H o p k ins v J an n i s o n 1 9 1 4 30 C L R 30 5 1 8 D L R 8 8
. , , . . . , . . . 93
H o m e V M i d l an d R y C o 1 8 7 3 L R 8 C P 1 31 5 R ZC 5 0 6 1 4 3
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H o r wd o d V S mi th . TR 750 23 R C 24 3 , . , . . 48
H ou s e V Br own 1 9 0 7 1 4 O L R 5 0 0
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H owe v S mith 1 8 8 4 2 7 Ch D 8 9
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H y d raulic E n gine e ring Co v M c Haf
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ne 1 8 7 8 4 Q E D 67 0 2 3
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R .C . 5 5 8

I mp e ri al Lo an Co., v S t on e
. , [1 8 9 2 ] 1 QB . 5 99
 TAB L E O F C A S E S

I n gli s V Ri ch ard s on
. S ons ,
1 9 1 3, 2 9 C .L .R . 2 2 9 ,
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1 4,
I r el an d v L i vi n g s to n 1 8 7 2 L R 5 H L 39 5
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I s a a c s v H a r d y 1 8 8 4 Ca b
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J oh n s o n V R ay l t o n
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J o nes V J us t 1 8 68 L R . 3 Q B 1 9 7 2 3 R C 4 66
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J o n e s V T an k er v i l l e
. 2 Ch 4 4 0 ,
.

J o n e s V Victo ri a G raving Do c k C o 1 8 77 2
. 31 4 6R C ., , ,
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J o s e p h V L yo n s 1 8 8 5 1 5 Q E D 2 8 0
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K ar b e rg C o V Bl y th e . C o [ 19 1 6] 1 KB 4 9 5
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K e e n V M ear [ 1 9 2 0 ] 2 Ch 5 7 4
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K e mp V F al k 1 8 8 2 7 A p p Cas 5 7 3 2 3 R C 39 9
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K enned y v P an ama e t c C o 1 8 67 L R 2 Q B
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. . .

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K im b e rl e y v P at chin 1 8 5 9 1 9 N Y 330
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K i r kh am V . A t t en b o r a ugh , [ 1 89 7 ] I Q E , 201 ,
.

K irs ch V Allen H ard ing Co 1 9 1 9 8 9

. ., , 2 65
K n i ght I n re E x p art e G o l d in g Da vi s
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L ai d l aw V V augh an Rh y s 1 9 1 1 4 4 Can S C R 4 5 8
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L ai n g V B ar cl ay [ 1 9 0 8 ] A C 35
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Lan gt on V Hi ggin s 1 8 5 9 4 H &N 4 0 2

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L aw B onar V Briti sh Am erican T o bacco C o [ 1 9 1 6]

. .
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2 KB . 60 5
L a yt h o arp v Br y an t 1 8 36 2 Bi n g N C 7 35 2 3 R C
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L e a v Tan g y e 1 9 1 9 4 9 D L R 52
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Leas k V S co tt 1 8 77 2
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L eb ea up i n V Cri s p in [ 1 9 2 0 ] 2 K E 7 1 4
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L ee V G ri f
,

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Le sl i e V S h i ell [ 1 9 1 4 ] 3 K B 60 6
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L i c kb ar r o w v M as o n 1 7 9 3 6 E as t zi n 1 S m i th L O
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p . 7 2 6, 4 R .C . 7 5 6,
Litt V Co wl e y 1 8 1 6 7 T aunt 1 69 2 3 R C 4 1 1
. , , . ,
. .

Lo g an V L e M e s ur i e r 1 8 4 7 6 M OO P C C 1 1 6
. . . . .

L o n d o n El e c tric Co V Eck e rt 1 9 1 7 4 0 O L R 2 08 af
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fi rm e d s ub . , , . . . , ,

n o m Ec k ert V
. L ond o n El ec tri c R y Co 1 9 1 8 5 7 Can . . ., , .

S C .R 61 0
.

Lo nd o n N o rt h W e s t e r n R y. Co . V . B art l e t t ,
1 8 61 , 7 H & N . 4 00
.

2 3 R .C. 4 34
Lo n g V S mith 1 9 1 1 2 3 O L R 1 2 1
. . . .

Lo ud e n M f
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g Co V M i l l mi n e 1 9 0 7 1 5 C L R 5 3
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. . .

L o v e s y V P al me r [ 1 9 1 6] 2 Ch 2 33
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L o w V B o uveri e [ 1 8 9 1 ] 3 Ch 8 2
. , .

M ad d i so n V Al d e r s o n 1 A p p Cas 4 67
. , . .

M al o u g h n e y V C r o w e 1 9 1 2 2 6 C L R 5 7 9 6 D L R
. , , . . . , . . . 4 71
M amb re S ac h ar i n e Co V C o rn Pr o d uct s C o [ 1 9 1 9 ] . . ., 1 KB . 1 98 .
 xx T A B L E OF C A S E S

M arch v B ant o n . , 191 1 ,

4 5 Ca n . S .C.R . 338

M a rsh al ] V . G re e n 1 8 7 5 , 1 C.P .D . 35 ,

M ar t i n v H au b n e r 1 8 9 6 2 6 Ca n . S C .R
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M ar t i n v . Wh al e [1 9 1 7 ] 2 K B 4 8 0 , .

M artin eau V K itc hing 1 8 7 2 L R 7 Q B 4 36

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. . .

M as o n Ri s ch V Chri s t n er 1 9 1 8 4 4 O L R 1 4 6 . , ,
. . . ,
46 DLR . . . 7 1 0,
4 2 , 1 32 , 1 33
M as on Ri s c h v Chri stn er . , 47 C .L .R . 5 2 ,
48 C .L .R . 8 ,

5 4 D L R 65 3 . . . . 16 42 , ,
1 32 , 1 33 1 36 ,

M att h ews V B axt er 1 8 7 3 L R . , ,

. . 8 Ex . 1 32 7
M ay V . Co n n , 1 91 1 , 2 3 C .L .R . 1 0 2 38
M ay bur y v . O B r i e n , 1 9 1 1 , 2 5 C .L .R . 2 2 9
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, 1 91 2 , 2 6 C .L .R . 62 8 ,
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D L R 2 68
. . . 29
M ay h ew V S c o t t 1 9 1 5 8 Al t a L R 66 2 1 D L R 5 4
. , , . . . , . . . 1 08
M c D i l l V Hil s o n 1 9 2 0 30 M an R 4 5 4 5 3 D L R 2 2 8
. , , . . ,
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M c G r e g o r v W h al en 1 9 1 4 31 C L R 5 4 3 2 0 D L R 4 8 9
. 35 , , . . . , . . . . , 1 1 4 , 1 29
M c I n n i s F arms V M c K en z i e 1 9 1 3 2 3 M an R 1 2 0 1 2 D L R
. , , . . , . . . 1 00
29
M c K ay V . D ave y ,
1 9 1 3 2 8 C .L .R . 32 2 , D L R 458
,
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M c N abb V . H owl an d 1 8 62 1 1 4 34 , , 4
M c N e i l ] v H aine s 1 8 8 9 1 7 O R 4 7 9
. , , . 12
M ei gh en V Co u ch 1 9 1 3 2 3 M an R 1 1 7 9 D L R
. , , . . , . . . 829 28
M e l ac h r i n o v N i c ko l l [ 1 9 2 0 ] 1 K B 69 3
, , . 1 40
M ere d ith v M e i gh 1 8 5 3 2 E & B 364 2 3 R C 2 1 7
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M e r s e y S te e l an d I r on Co . v N ay l o r
. , 1 8 8 4 , 9 A p p . Cas . 4 34 , 2 3
R C 5 04
. . 1 03
M ill e tt v V an H ee k C o [ 1 9 2 0 ] 3 K B 5 35
. ., . 140
M ill s o n v S ma l e 1 8 9 4 2 5 O R 1 4 4
. , , . . 9
M i r ab i t a v I mp eri al O t t oman B an k 1 8 7 8 3 E x D 1 64
. 42 , , . . , 45
M i x er V H owar th 1 8 38 2 1 P i c k ( 38 M as s ) 2 0 5
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M o l t e n v C a m r o ux 1 8 4 9 4 E x 1 7 6 R C 7 1
. , , . , . . 7
M on d e l V S te el 1 8 4 1 8 M &W 8 5 8
. , , . . 146
M o o ers V G o o d e rh am 1 8 8 7 1 4 O R 4 5 1
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M o ore V Lan d auer [ 1 9 2 1 ] 1 K B 7 3
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, . . 1 01
M o rg an V Rus s ell . S o n s [ 1 9 0 9 ] 1 K B 35 7 , . 12
M o rr i s V B ar o n [ 1 9 1 8 ] A C 1
. , .2 3 . . , 1 35
M o rro w C e re al Co v O g ilvi e Flour M ill s Co 1 9 1 8 5 7 Ca n S C R
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4 03 4 4 D L R 5 5 7 rever s i n g i n p art O g ilvi e V M o rr o w

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1 9 1 7 4 1 C L R 5 8 39 D L R 4 63
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M o rt o n V Lamb 1 7 9 7 7 T R 1 2 5 2 3 R C 5 0 0
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M o rto n V T i bbe tt 1 8 5 0 1 5 Q B 4 2 8
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M o s s V S we e t 1 8 5 1 1 6 Q B 4 9 3
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Murray V W eil er 1 9 1 0 3 A l t a L R 1 8 0
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N ash V I nman [ 1 9 0 8 ] 2 K B 1
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 T A B L E OF C A S E S xx i

New H amburg M f g C o V W e bb 1 9 1 1 2 3 O L R 4 4 78 88 1 4 8 . . . , , . . . , ,

N ewb i ggi n g V A d am 1 8 8 6 34 Ch D 5 8 2 . 74 , ,
. .

N i ag ara G rai n C o V R eno 1 9 1 6 38 C L R 1 5 9 32 D L R 5 7 6 8 1 8 8 . . , , . . . ,

. . . ,

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N o rth v Lo o mi s [ 1 9 1 9 ] 1 Ch 37 8
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N o rth e rn S t e l H ar dwa re Co v B att 1 9 1 7 33 T i me s L R 5 1 6 1 0 7

e . . , ,
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N o rto n V D avi s o n [ 1 8 9 9 ] 1 Q B 4 0 1
. 26
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O gl e v E arl V an e 1 8 67 L R 2 Q B 2 7 5 3 Q B 2 7 2
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1 35 , . . . , .

Ol d r i ev e v A nd er s o n Co 1 9 1 6 35 C L R 39 6 2 7 D L R 2 31
. 92 ., ,
. . . ,
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O M e al e y V S wart z 1 9 1 8 1 1 S as k L R 37 6 92
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Ori en t C o V Bre kk e [ 1 9 1 3] 1 K B 5 31
. . 97 , .

P ag e V M o rg an 1 8 8 5 1 5 Q E D 2 2 8
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P ar k er V C ri s p Co [ 1 9 1 9 ] 1 K B 4 8 1
. 26 ., .

P at o n V Payn e 1 8 9 7 35 S e L R 1 1 2
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P a yz u V S aun d e rs [ 1 9 1 9 ] 2 K B
. 5 81 1 0 4 1 36 1 4 1 , . , ,

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. . 1 00 ., .

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P e eb l es V P fe i f e r 1 9 1 8 1 1 S a s k L R 2 4 9
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P el e e I s l and N a vi gati o n C o V Do ty E n gi ne W o rk s Co 1 9 1 1 2 3 . . ., ,

O.L .R . 4 0 2 144
Peo p l e s B an k o fH ali fax v E s t e y 1 9 0 4 34 C an S . , , . C .R . 4 2 9
. . 4 7, 56
Per kin s V B ell [ 1 8 9 3] 1 Q B 1 9 3
.
, . 110
P etri e V R ae 1 9 1 9 4 6 O L R 1 9
. , ,
. . . 29, 99 , 141
Peuch en V I mp er i al B an k 1 8 9 0 2 0 O R 32 5
. , , . . 87
Philli p s V Bro o ks [ 1 9 1 9 ] 2 K B 2 4 3
. , . 49
Pic k ering V Bus k 1 8 1 2 1 5 E as t 38
. , , 61
Pi gna t ar o V Gilr o y [ 1 9 1 9 ] 1 K B 4 5 9
. , . 42
Pl ett V Camp b ell [ 1 8 9 5 ] 2 Q B 2 2 9
. ,
. 40
Pre i s t v La s t [ 1 9 0 3] 2 K B 1 4 8
. , . 93
Pres te d M i n er s Co V G ar d n e r [ 1 9 1 1 ] 1 K B 4 2 5 . . , . 18
Pritch e tt e t c Co V Curri e [ 1 9 1 6] 2 Ch 5 1 5
., . . . 42
Pul f o rd V Lo yal Or d e r o f
, ,

. M o o s e 1 9 1 3 2 3 M an R , , . . 64 1 , 14 DLR . . .

5 77 28
R an d all V N ews on 1 8 7 7 2 Q E D 1 0 2 2 3 R C 4 8 0
. , , . . . , . . 93
R and all V R ap e r 1 8 5 8. 84 , , 147
R an d all V S awy er M as se y Co 1 9 1 8 4 3 O L R 60 2
. 92 -
., , . . . , 93
R awli n g s V G en eral Trad i n g C o [ 1 9 2 1 ] W N 2 3 C A r ve r s ing
. ., . . , . ., e

[ 1 9 2 0 ] 3 K B . 30 1 5 6, 1 5 7
R e d gr ave Hurd 1 8 8 1 2 0 C h D 1
V. , , . . 74
R e g V R o g e r s 1 8 77 3 Q B D 2 8
. . , , . . . 99
R ei d V M a c be th an d G ra y [ 1 9 0 4 ] A O
.
, . . 223 32
R eus s V P i cks l e y 1 8 66 L R 1 E x 34 2
. , ,
. . . 23
R eute r V S al a 1 8 7 9 4 C P D 2 39
. , , . . . 1 02
R ex V. Ch ap p us , 1 920 , 4 8 C .L .R . 1 8 9 , 5 5 DLR . . . 77 35
R o b rts v Gray
e
‘

. , [ 1 9 1 3] 1 K B . 5 20 10
xx ii T A B L E OF C A S E S ' ' '

R o b ert s on V K ell y 1 88 2 2 O R 1 63 . , , .

R o b ins on V Can ad i an P ac i fi c R y Co [ 1 89 2 ] A C 4 8 1
. . . .

R o d o ca n ac h v M ill b urn 1 8 8 6 1 8 Q E D 67
1 . . , , . . .

R o p e r V J oh n s on 1 8 7 3 L R 8 C P
. _ R C 5 32 , ,
. . . . . .

R o s s V Hurte au 1 8 9 0 1 8 Can S C R 7 1 3
. ,
_
, . . . .

Ru b el e t c Co an d V o s I n r e [ 1 9 1 7 ] 1 K B 31 5
, .
,
. , , .

Rug g V M i n et t 1 8 0 9 1 1 E as t 2 1 0 2 3 R C 2 9 5
. , , ,
. .

S awy e r M as s e y C o V Rit chi e 1 9 1 0 4 3 C an S C R 61 4

-
. . , ,
. . . .

S catt e r g o o d v Sy lve s t e r 1 8 5 0 1 5 Q B 5 0 6 1 6 R C 1
. . . . .

Can h am 1 9 2 0 4 7 O L R 1 9 4 af
, , ,

S chmi d t v W i l s o n . fi rmed 4 8 , , . . . , ,

O L R 257 5 5 D L R 5 1 6
. . . , . . .

S ea t h V M o o r e 1 8 8 5 1 1 A p p Ga s 35 0 2 3 R C 2 5 7
. , , . . ,
. .

S e d d o n V N o rt h E as tern S alt Co [ 1 9 0 5 ] 1 Ch 32 6
. ., .

S el k ir k Lan d I nve stme n t C o V Ro b in s o n 1 9 1 3 2 3 Man R 7 7 4 . , , , . . ,

1 3 D L R 9 36 . . .

S ell s V Th oms o n 1 9 1 4 1 9 B C R
. 1 7 D L R 7 37
-

, ,
. . . . . .

S ewell v B ur d i c k 1 8 8 4 1 0 A p p Gas
. 4 R C 75 8 , ,
. . . .

S h arp V Chri s tmas 1 8 9 2 8 T i me s L R 68 7

. , ,
. .

S h ar p e V N o s awa [ 1 9 1 7 ] 2 K B 8 1 4
. , .

S hep h e r d v H arri s o n 1 8 7 1 L R 5 H L
. L R 4 QB 1 9 6 23 , ,
. . . . . . ,

R .C . 34 9 44
S hi pt o n And ers o n
, Co . v W e il Bro s
. . C o ., [ 1 9 1 2 ] 1 K B . 1 01
S i e ri ch s v Hugh e s
. ,
4 2 C .L .R . 60 8 , 4 3 DLR . : . 297 . 24 ,
1 0 0 , 1 05
S i ms V . M ar r yat t 1 8 5 1 1 7 Q B 2 8 1 , , . . 87
S ims v M i d l an d R y Co [ 1 9 1 3] 1 K B 1 0 3
. . . . 99
S l ate r v H o yl e S mi th [ 1 9 2 0 ] 2 K B 1 1
. 142 143 , . , ,
147 , 148
S mi t h V Ch ance 1 8 1 9 2 B &A A l d 75 3
. , ,
. . 98
S mi th V G reen 1 8 75 1 C.P D 9 2 2 3 R C 5 66
. , , . . , . . 150
S mith v J ami es o n 1 8 8 9 1 7 O R 62 6
. , ,
. . 9
Sm i th V K in g [ 1 8 9 2 ] 2 Q B 5 4 3
. , . 9
Smi th V L an d an d H au s e Pro p e rt y Co rp o ra ti on 1 8 8 4 2 8 On
.
, , D
. . 7 73
S mith V S urman 1 8 2 9 9 B & C 5 61 2 3 R C 2 30
. 12 27
S o l t yk o f
fI n r e [ 1 8 9 1 ] 1 Q B 4 1 3
, , . . , . . ,

, . 11
So ve re i gn B an k , re, C lar k s ’
C a se , 1 9 1 6 35 C .L .R . 4 4 8 , 2 7
,
DLR . . .

253 9
S p ar k s V Cl eme nt 1 9 1 7 4 1 O L R 34 4 , , . . . 28
S tand ar d Re alt y C o V N i ch ol so n 1 9 1 1 2 4 C L R 4 6 . .
, , . . . 2 7, 29
S tan d ar d Tru s t C o V K ar s t 1 9 1 4 7 S a s k L R 2 9 0 . 2 0 D L . . , , . . . . R 10 45
S t an t o n V Aus t i n 1 8 7 2 L R 7 C P 65 1
. , , . . . . 1 00
S t e ina c k e r v S q uire 1 9 1 3 30 O L R . D L R 4 34 , ,
. . . . . 150
S t ewart v K enne d y 1 8 9 0 1 5 A p p Gas 7 5
.
, , . . 1 45
S t o c k V M e y e rs Co o k 1 9 1 9 4 6C L R 4 2 0 5 1 D L R 32 8
. , , , . . . , . . . 60
S t o c k s v W il so n [ 1 9 1 3] 2 K B 2 35
.
, . 8
S t o k e s v Wh i c h e r [ 1 9 2 0 ] 1 C h 4 1 1
. ,
(
. 27
S t o n e h am I n r e , , [ 1 9 1 9 ] 1 Ch . 31
S tuart v Cl ar k . , 1 91 7, 1 1 A l ta . L .R . 5 5 1 , 36 DLR . . . 25 4 1 00
S we e t v. ~
P ym , 1 E as t 4 , 1 6 R .C . 1 4 2 1 17
 T A B LE OF CA S E S
‘
xxi ii
T arling V B ax ter 1 8 2 7 6 B & C 360 2 3
. , ,
. . ,
R .C. 2 5 7
T ayl o r V G reat E as ter n R y Co [ 1 9 0 1 ]
. . ., 1 KB . 774
T a yl o r V I i l l o ts o n 1 8 36 1 6 W e n d
'
.
‘
, ,
4 94
Th ame s Ca n n i n g Co v E c kh ar d t 1 9 1 5
,
. . , , 34 C .L .R . 7 2 ,
23 DLR . . .

805 24 , 1 1 0
Th ame s S a c k an d B ag Co . V K nowl e s [ 1 9 1 8 ] W N
. ,
. . 1 7 6 1 1 9 L T.
,

Th i r k e l l mbi [ 1 9 1 9 ] 2 K B 5 9 0
V. Ca , .

Th omp s on V N elle s 1 8 5 5 4 . 39 9 , ,

Th oms on V Pl a yf ai r 1 9 1 2 2 6C L R 62 4 6 D L R 2 63
. , , . . . , . . . .
c

Th o rn e t t V B e er s [ 1 9 1 9 ] 1 K B
. 4 86 , .

T omli n s o n V M o rri s 1 8 8 6 1 2 O R 31 1
. , ,
. .

Tu fts V P o n e s s 1 9 0 0 32 O R 5 1
. , , . .

Turl e y V B a t e s 1 8 63 2 H &C 2 0 0
. , , . .

Turne r V L i verp o o l D o c k s 1 8 5 1 6 E x ch 5 4 3 4 R C 7 2 5
. , , . , . .

T ye V F yn mor e 1 8 1 3 3 Camp 4 62 2 3 R C 4 0
. , , . ,
-
. .

Uni t ed S t at e s S te el Pro d uc t s C o V G rea t W e s tern R y . . . Co

[ 1 9 1 6] 1 A .O. 1 8 9
V arle y V . Whi p p [ 1 9 0 0 ] 1 Q B . 5 1 3 ,

V i c M ill I n r e [ 1 9 1 3] 1 Ch 1 8 3 4 65
, ,
. ,

V i p on d V S i s c o 1 9 1 3 2 9 C L R 2 0 0 1 4 D L R 1 2 9
. , , . . . , . . . 24 , 44
V o lturno Th e [ 1 9 2 0 ] P 4 4 7
, , .

W ai n V Warl t e r s 1 8 0 4 5 E as t 1 0 6 R C 2 30
. , , ,
. .

W al k e r V Nus s e y 1 8 4 7 1 6
. 30 2 , ,

W alli s V Pr att [ 1 9 1 1 ] A O 39 4 r ever s i n g [ 1 9 1 0 ]

. , . . , 2 KB . 1 0 03
76 82 , , 8 3,

W alter v Ever ar d [ 1 8 9 1 ] 2 Q B 369

. , .

W ard V H o bb s 1 8 7 8 4 A p p Gas 1 3
. , , . .

W e ine r v G ill [ 1 9 0 6] 2 K B 5 7 4
. , .

W e i n e r V H ar ri s [ 1 9 1 0 ] 1 K B 2 8 5
. , .

W e rth eim v Chi co utimi Pul p Co [ 1 9 1 1 ]

. ., A .C . 30 1
We s t zi n t h us I n re 1 8 33 5 B &A d 8 1 7 4 R C 8 4 5
'

, , , . . , . .

W hite v G re e r 1 9 1 6 36 O L R 30 6 30 D L R 7 0
. , ,
. . . , . . .

Wh it e V W i l ks 1 8 1 3 5 Taun t 1 7 6 2 3 R C 2 5 2
. , , . ,
. .

Whiteh e a d V An d er s on 1 8 4 2 9 M &W 5 1 8
. , , . .

Whi t eho rn Bro th e rs v D avi so n [ 1 9 1 1 ] 1 K B 4 63 . , .

W il k i n s o n V E vans 1 8 66 L R 1 C P 4 0 7
. , , . . . .

W illi ams V A giu s [ 1 9 1 4 ] A C 5 1 0

. , . .

W illi am s V R e y n ol d s 1 8 65 6 B &S 4 9 5
. , ,
. .

W il s o n H o l ga te Co V B el g i an G ra i n an d Pr o d u c e . . C o ., [ 1 9 2 0 ]
2 KB 1

W il s on V S h aver 1 9 0 1 3 OL R 1 1 0
. , . .

C o v R o s en b er g [ 1 9 1 3] 3 K B
,

W imbl e S o n s . 74 3 . .

Wol f
, ,

en d e n V W i l s o n 1 8 7 3 33 U C R 4 4 2
. , , . .

W oo d V An d e r s o n 1 9 1 5 33 O L R 1 4 3 2 1 D L R 2 4 7
.
, , . . , . . .

Wood V. T as sel " , 1 8 4 4 , 6 Q B . 2 34

 T A B L E OF C A S E S

W ren v. H o lt [ 1 9 0 3] 1 K B 61 0
, .

Y oun g V M at th ews 1 8 66 L R 2
. , ,
. . C .P . 1 2 7
Z ai s er v J es s k e 1 9 1 8 1 1 S as k L
. , , . R . 4 62 , 4 3
. DLR
. . 223
2 I N T R O D U CTI O N

As re g ard s Sc otl and in s ome c as e s the Sc otti s h rule h as

,

been s aved or en acted for Sc otl and in other s it h as been ,

modified whil e in other s the E ngli sh rul e h as be en adopted ”

, .

§ 2 . Cod i fi c at i on i n Can ad a.

It w as only in an intermittent an d h aph a z ard m anner

t h at adv ant a ge was t aken in the v ari ou s provi nce s of Can
"

a d a of the c odific ati o n of the l aw of s ale of go o d s e fi ec t e d in

t h e Unite d Kingdom in 1 89 3 In 1 8 9 6the S ale of Go od s Act

‘

w as a dopte d in M anit ob a in 1 8 9 7 in B riti sh C olumbi a in

, ,

1 8 9 8 in the N orthwe s t Territorie s of C an ad a ( p art s of

w hich were in 1 9 0 5 formed int o the P rovince s of
’

A I b er t a
a n d S as k atche w an ) an d in 1 9 1 0 in N ov a Sc o ti a
, .

In 1 9 1 8 pur s u ant t o rec omme nd ati on s m ade by the Can

,

a di a n B a r A ss oci ati on the government s of s ome of th e prov

,

I n c e s of C an a d a app ointed c ommi ss ioner s for the purp o s e

of promoting uniformity of p rov mc i al le gi sl ation In t h e : .

s a me ye ar the s e c ommi ss i oner s together wi th repre s e nt a

,

ti y e s of mo s t of the other prov i nce s met in c onference for ,

the fir s t time an d brought int o e xi s tence a perm anent ass o

,

s oci ati on under the n ame of the C onferenc e of C ommi ss ion

e r s on Uniformity of L e gi s l ation in C an ad a Thi s b ody .

m eet s once a ye ar t o c o n s ider subj ect s with re g ard t o whi ch

it s eem s de s ir able an d pr a ctic ab l e th at there s h ould b e uni
formity of provinci al le gi sl ation In the interv al s between .

t h e meeting s o f the C onferenc e dr aft s of m odel s t atute s on

v ariou s s ubj ect s ar e prep ared by c ommittee s an d the s e ,

d r aft s ar e s ub mi tte d for revi s i on t o the c ommi s si oner s when

they mee t in annu al c onference .

At an e arly d ate after i t s f orm ati on the C onference dre w

a t t e n t i on t o the f act th at the S ale of Go od s Act h ad been
'

a dopted in s ome of the pr ovince s b u t th at Ne w B run s wic k , ,

P rince E d ward I s l and an d Ont ari o s till enj oyed the doubt
ful adv ant a ge s of the un c o di fi ed E ngli s h l aw rel ating to
the s ale of g ood s A s a re sult of the a cti on of the C onfer
.

e nce the s t atute was adopte d in Ne w B r un s wi ck an d P rinc e

E dw ard I s l and in 1 9 1 9 an d in Ont ari o in 1 9 2 0

'

The C on
f
.
,

er e n c e s c ommitte e on s ale of go od s an d p artner s hip re

’

p orte d in Au gu s t 1 9 20 to the third annu al meetin g of the

, ,
.

C onference in p art as foll ow s

, ,
 I N T R O D U CTI O N 3

1 . Y our committee con si sting of the commi ssioners

,

from Ont ari o i s gl ad to be able to rep ort further subs t an

,

ti al pro gre ss in the direction of s ecuring unifo r mity of

le gi sl ation on t h e s ubj ect of S al e of Good s an d P artner

2 . mention ed in the rep ort of your co mmitte e p re

As
s ented to the conference in 1 9 1 9 the S ale of G oo ds Act , ,

1 8 9 3 was adopted in New B run swick an d in P ri nce E d

,

wa rd I sl and in 1 9 1 9 at the in st ance of the commi ss ion er s

,

from thes e p rovince s res pectively P ursu ant t o t he r ecom .

men d at i on of the Conference m ade in 1 9 1 9 an d at the ,

in st ance of t h e Ont ari o commi ss ioners the s t atute was ,

adopt ed in Onta rio in 1 9 2 0 The re sult i s that the s t atut e.

i s now in force in al l the p rovince s of C an ad a except

Queb ec .

3. I t i s of interes t to not e th at th e S ale of Good s Act ,

1 8 9 3 ori gin ally en ac ted to codify the l aw of the United

,

Kingdom has been adopted in the following B riti sh do

,

minion s :
1 8 9 5 B arb ado s Gibr alt a r J am aic a I s le of M an New
.
, , , ,

Z e al and South Au s trali a Trinid ad an d Tob a go

, ,

We stern Au strali a .

1 8 9 6 C eylon H ong Kon g M anitob a Queen sl and Tas

.
,
-
, , ,

m ani a V ictori a, .

1 8 9 7 B riti sh Columbi a
. .

1 89 8 Northwe st T erritorie s of C an ad a ( th en including

.

Alberta an d S as k atchew an ) ;
1 8 9 9 B riti sh H ondur as Ne wfoundl and
.
,

1 9 0 4 B ah amas ;
.

1 9 1 0 Nov a Scoti a ;
.

1 9 1 3 B riti sh Gui an a ;
.

1 9 1 9 New B run s wick P rince E dwa rd I sl and ; ,

1 9 2 0 Ont ario
. .

noted in l ast ye ar s report of thi s committee t he

4 . As
’

F actors Act 1 8 8 9 en acted by the B ri ti s h P a rli ament h ad

, , ,

be en adopted in Albert a B riti sh C olumbi a New B run s , ,

wick Nov a Sco ti a Ont ario an d S as k atchewan P ur su ant

, , .

to the recommend ati on of the Conference it ivas al so

'
“

adopt ed in P rince E dwa rd I sl an d in 1 9 2 0 at t h e in st anc e ,

 INT R O D U CTI O N

of the comm i ssioners from th at p rovince Your committe e .

i s inform ed tha t it will p rob ably be adopted in M anitob a

i n 1 9 2 1 In Quebec articles 1 7 35 1 7 5 4 of the Civil Code
.
,
-

of L ower C an ada ar e b as ed up on the fo rmer B riti sh l e gi s

l ation sup ers eded in the Unit ed Kingdom by the F acto rs
,

Act of 1 88 9 .

( NOT E : The re s t of the rep ort rel ate s to the s ubj ec t of

p artnership A s a re sult of the acti on of the Conference the
f
.

P artners hip Act 1 8 9 0 which codified the gener al l aw o p ar t

, ,

n ers h i p in the United Kingdom was a dopted in New B run s ,

wi ck Ont ario an d P rince E dw a rd I sl and in 1 9 2 0 an d i s now

in force in al l th e p rovinc es o f
, ,

Can ad a except Q uebec In

‘

. .

Quebec the s ubj ects of sal e of good s an d p artner shi p are gov
e rned by the Civil Code of L ower C an ad a I n Newfoundl and .

the P artners hip Act was adopted in 1 8 9 2 an d the S ale of

Good s Act as al rea dy menti oned in
, ,

§ 3. Co di fi c ati o n i n t h e Uni t e d S t at e s .

The cre ation in 1 9 1 8 of the Conference of C ommi ssioner s

on Uniformity of L e gi sl ati on i n C an ad a was d ue t o some
ex tent to the not abl e ex ampl e af forded in the United St at e s
b y the Nati on al C onference of C ommi ss ioners on U ni form
St ate L aw s Thi s b ody o f
. Americ an l awyer s h as be en in e xi s t
a nce s ince 1 8 92 I t s b es t known an d mo st imp ortant achieve
.

ment i s the p rep arati on of a Uniform Negoti abl e Ins tru ments
Act which h as been adopte d in o ver fifty s t ate s an d ter
,

r i t o r i es but it h as al s o prep are d m a ny other m odel s t atute s

,

which h ave been widely a dopted .

I n 1 9 0 2 3 at the reque st of the C onferenc e of C ommi s

,

s i on ers on Uniform St ate L aw s P rofe ss or S amue l Willis t on

, ,

of t hd H ar vard L aw Sch ool C amb ridge M ass achusett s p re

, , ,

p ared a draft of an ac t for codifying the l aw rel ating to the

sal e of g o od s Thi s draft was b as ed o n the S al e of Goods Act
.

1 8 9 3 but di f f
,

, ered from it in v ari ou s re sp ect s It was p rinted .

'

in t he summer of 1 9 03 an d it was s ent with a reques t for ,

critici s m to te ache rs of the l aw of s ale s an d to other exp erts

,

on the s u b j ect Some c ritici sm s were receiv ed , an d with the

.

light of the s e critici s m s an d hi s own further refl ection s the

the draft sm an p rep ared a number of amendment s an d sub
mi t t ed the m to the C onferenc e in 1 9 0 4 The d r aft was the n .
 I N T R O D U CTI O N

gone over c arefully s ection by section by the C onference an d

, , ,

doubtful p oin ts an d ch an ge s in wording were di scu ss ed an d

voted upon The draft was then r e comm itted to the draft s
.
-

man wit h in s t r uction s to incorp orat e in the dr aft the ch an ge s

adopted by the C onference an d to s ubmit a revi sed draft in
1 9 05 .
In accord ance with the s e ins t ruction s an other draft was ,

p re sented to the Confe r enc e in 1 9 05 Thi s dr aft included for .

the first time a numb er of s ection s on the tran sfer of p rop e rty
f
by mea l s of negoti ab l e document s an d on account of these ,
h

sec tion s it was t h ou gh t be s t once more to r e commit the dr aft

’

-
.

In 1 9 0 6a revi s ed draft was fin al ly adopted by the Conferenc e

an d reco mmended for en actment by the v a riou s s t ate le gi s l a

tu re s under the n ame of the Unifo r m S ale s Act

f
.

The Uniform S ale s Act h as been en acted to the ollowing

extent

1 9 0 7 C o n e c ti c u t Ne w Jer s ey ;
.
,

1 9 0 8 M ass a chu sett s Mi ss i s s ipp i ( with slight modi fic a

.
,

tiOns) ,
Ohio R hode I sl and ;
,

1 9 1 0 M aryl and ;
.

1 9 1 1 New Y ork Wi s con s in ;

.
,

1 9 1 3 Arizon a Michi gan Al as k a ;

.
, ,

1 9 1 5 Illinoi s Nev ad a P en n syl v

fi
.
, a ;
,

1 9 1 7 Minn es ot a No rth D akot a

.
, ah Wyoming ; , ,

1 9 1 9 Id aho I ow a O regon Tenne ss ee

. , , , .

In the cours e of the book attention i s drawn to the more

important di f ference s between the p rovi s ion s of the Uniform
S ales Act an d tho s e of t he S al e of Good s Act There ar e no p ro .
~

vi sio ns in the S al e of Good s Act corre s ponding with the se c

'

tion s of the Uniform S al es Act ( SS rel ating to ne goti

.

able d ocument s of title

 C H AP TE R I .

THE CONTRA CT o r S AL E .

D efinition of contract of sal e .

The p a rtie s an d their c ap acity

1 ) lun atic s an d drunken p e rs on s .

( 2 ) inf ant s .

Nece ssar ie s .

The subj ect m atter of t h e contr act .

D e struction or dete r ior ation of the

( 1 ) before the contr a ct .

( 2 ) after the contract .

The con sideration for th e contr act .

D efi ni t i on OfCon t r ac t o f
S l a e.

The Sale of Good s Act ( On t s 3 ; U K s 1 ) p rovide s

. . . .

3 . A contr act of sale of g oo d s i s a contr act where

by the s eller tran s fer s or agree s t o tr an sfer the p rop erty
in good s to the buyer for a money con sider ation c all ed ,

the p rice There may be a contr act of s ale between on e

.

p art owner an d another .

( 2 ) A contr a ct of sa le may b e ab s ol ute or conditional .

'
( 3) Where under a contract of s ale the p roperty in
good s 1 s tran s ferred from the seller t o the buyer the con
tr act i s c alled a sale ; but wher e the tran sfer of the p rope rty
in th e good s I s t o t ake pl ace at a future time or subj ect t o
s ome condition there after to be fulfilled the co ntr act i s

c al led an a greement to s ell .

( 4 ) An a greeme n t to s ell become sa sal e when the time

el ap se s or the condition s ar e fulfilled subj ect to whi ch t he
p roperty in the good s i s to be tran s ferred .

The di stinction drawn in sub ss 3 an d 4 between an a gree

.- .

ment to s el l an d a sal e 1 s fund ament al in the l aw of sale of

good s Thi s di stinction c an however be more conveni ently
.
, ,

di scus sed in ch apte r 3 in conn ection with the rule s which

gove r n the p assing Of
,

the property as betwe en the s eller an d

the buyer .
 § 1 1 . C O NT R A CT OF S A LE .

Where as in the S al e of Good s Act the term c ontr act of

“ ”
sal e i s u sed to exp re ss both an agreement t o s ell an d a
”

“ ”
sale in the Uni ted St ate s the te r m contra ct of s al e d oes
“ ”
,

not occur in the Unifo r m S ale s Act an d the terms contra “

ct ,

”
to s ell an d s al e are u s ed throughout the st atute either in
.
” “
,

the altern ative or singly as the context may require .

1 2 . Th e p ar t i es an d th eir c ap ac i t y

The p a rti es to a contract of sale ar e c alled the s eller and

the buyer Th e S al e of G ood s Act ( On t s 2 ; U K s 62 ) de
. . . . . .

fi ne s the former as me aning a p er s on who s ells or a gre es to

s ell good s an d the l atter as a p e rs on who b uy s or a gre es to
'

buy good s .

The S al e of Good s Act ( On t s 4 ; U K s 2 ) p rovide s .

,
. . .

4 , C ap a city to buy an d s ell i s r e gul at ed by the '

general l aw concernin g c ap acity to contract an d to tr an s ,

fer an d acquire p rop erty .

( The re st of the s ection rel ates to neces s arie s —

a su bj ect
which is di s cu ss ed in 1 3)

(1) L u n ati cs an d d r un ken p er s o n s .

The general rule as to the contr act of al un at i c ( at all event s
if not s o found by inqui s ition ) or drunken man who by r ea
son o f
, ,

lun acy or dru nkenne ss i s not c ap able of underst anding

i t s term s or forming a r ation al j udgm ent of i ts efi ec t on h i s
i ntere st s i s th at s uch a contr act i s void able at h i s option but
, ,

o nl y i f hi s s t ate i s known to the other p a rty The defend an t .

who s et s up h i s own inc ap acity as a defence mu s t p rove not

only th at inc a acity but the p l ai n t ifi s knowl ed ge of it a t the
’

p
d ate of the contract .

P ollock , p 9 7 ; Molton v Cam

Contr act , 8th ed .
,
1 911 , . .

roux 1 8 4 9 4 E x 1 7 6R C 7 1 ; M atthew s v B axter 1 8 7 3

, ,
'

.
, . . . , ,

L R 8 E x 1 32 ; Imperi al L o an C o V Stone [1 8 9 2 ] 1 QB
. . . . . ,
.

5 9 9 ; R obert s on v Kelly 1 8 8 2 2 O R 1 63 ; Murra y V

“

VVe i l e r 1 9 1 0 3 Alt a L R 1 8 0 ; B awl f

, , . . .

, , Grain C o v R os s
. . . . . ,

1 9 1 7 5 5 Can
, 2 32 37 D L R 62 0 rever s ing 1 1 Alt a ,
. . .
,
.

L Rt 2 6; Conr ad v H alif ax L umber Co 1 9 1 8 5 2 N S R

. . ., ,
. . .

2 5 0 4 1 D .L .R . 2 1 8 .
,
8 CH AP T ER I . C O N T R A CT O F S A L E .

(2 ) I n f an t s .

An infant i s not ab solutely inc ap abl e of binding him self ,

but i s gener al ly s p eaking inc ap able of ab s olutely bindin g

, ,

him s elf by contract Hi s acts an d contr act s ar e void able at

.

hi s Option s ubj ect to cert ain st atutory an d other exception s

,
.

P ollock Contr act 8 t h c d 1 9 1 1 p 5 6; se e al s o B ruce v

, ,
., , . .

W arwi ck 1 8 1 5 2 M a S 2 0 5 6 T aunt 1 1 8 6 R C 43 ;
, , . .
,
.
,
.

Cowern v Nield [1 9 1 2 ] 2 K B 4 1 9 ( inf ant not li ab le for

. ,
.

the p rice of good s s old an d delivered ) St oc ks v Wil son . ,

[ 1 9 1 3] 2 K B 2 35 ; L e slie v Shiell. [ 1 9 1 4 ] 3 K B 60 6 . ,
.

( mi srep res ent ation of age )

In Ont ario it i s p rovi ded byth e St atute of F raud s ,

1 9 1 4 c 1 0 2 s 7 ( r e en actin g L o r d Ten t er d en s Act 9 G 4 c

’ '
. .
-
. ,
, , ,

14 s, . as follow s

7 No action s h all b e m ainta ined whereby to ch a r g

. e

an y pe rs on up on an y p romi s e m ade after full a ge to p ay

a n y debt contr acted during inf ancy or upon an y r at i fi c a ,

tion after full age of an y p romi s e or s imple contr act m ad e

during inf an cy unle ss the p romi s e or ratific ation i s m ad e
,

by s ome writing si gned by the p arty t o be ch a rged there

with o r by hi s a ent duly a uthorized to m ake the p romi se
g -

or r atific ation .

In the United Kingdom L ord Ten t erd en s Act h as been ’

s up ers eded by the Inf ant s R elief Act 1 8 74 which p rovid e

’
s , ,

as follow s :

1 All contr a ct s whether by s peci alty or by S i mpl

.
,
e
c ontract henceforth entered into by inf ant s for the rep ay
ment of money lent or to be lent or f
,

or good s supplied
or ,

to be suppli ed ( oth e r th an contr act s for nece ssarie s ) an d ,

al l a ccount s s t ated with inf ant s sh all be ab s olutely void : ,

P ro v i d ed al ways th at thi s en actment sh all not inv al id ate

,

an y contr act into which an inf ant may by an y exi sting or ,

future st atute or by the rule s of common l aw or equity

, ,

enter except s uch as now by l aw are void able

, .

2 No a ct i on sh all be brought whereby to ch a rge an y

.
’

pers on upon any p romi se m ade after full age to p ay an y

d ebt contracted during inf ancy or u p on an y r atific ation ,

m ade after full age of an y p romi s e or contract m ad e dur

10 CH A P T E R I . C O N T R A CT O F S A L E .

1 3. Ne c e ssari es .

The S ale o fGood

Act ( On t s 4 ; U K s 2 ) p rovid es
~

s . . . . .

4 , C ap acity t o buy an d sell i s regul ated by t he

gen eral l aw concerning c ap acity to contr act an d to tr an s ,

fer an d acqui re p rop erty :

P rovided th at where nece ssa ri es ar e sold an d deliver ed
to an infant or mi nor or to a p ers on who by re as on of
ment al i nc ap acity or d r unkennes s i s incomp eten t to con
tract he must p ay a re as on abl e p rice therefor
,
.

( 2 ) N ec es sar i es in thi s s ecti on me an good s suit able t o

t h e condition in life of s uch inf an t or minor or other p er
son an d to h i s actu al requirements at the tim e of the sal e
,

an d delivery .

N otwit hst anding th at us u all y the contrac t of an infant ,

lun ati c or d r unken p ers on i s void abl e at hi s opti on ( if in t he

c as e of the lun atic or drunken p ers on hi s st ate was known to
“

the other contractin g p arty ) he may b e li abl e for nece ssaries ,

.

In th e st atute t h e leg al li ab ility to p ay an d the inc ap acity

to contract ar e put s ide by side as c o exi sten t an d t h e inf ant -
,

or other p ers on who i s incomp etent to contr act woul d s eem t o

b e li able for nece ssaries not bec au s e he i s in thi s r espec t abl e
,

to contract but bec au se he i s b ound quas i ea: con trac tu

, .

An s on Contra ct 1 5 t h ed 1 9 2 0 pp 1 4 1 2 ; Nash v I n
, , . ,
.
-
.

man [1 9 08 ] 2 K B 1 at p 8
, . ,
.

The st atuto ry definition of nec essa ries st ates the resul t of

m any deci s ion s The E ngli sh c ases are coll ected in B enj ami n
S ale 5 t h ed 1 9 0 6 p p 4 6f fan d 1 7 Hal sbury L aws of E n g
.
,

. . .
, , , ,

l and pp 67 69 2 5 Hal sbu ry op ci t p p 1 2 4 1 2 5

,
.
-
, , . , . , .

In R o b ert s v Gray [1 9 1 3] 1 K B 5 2 0 it was decid ed th at

.
,
. ,

a contr a ct by an infant for necess a rie s an d for h i s b enefit i s

binding on h i m an d c annot be repudi ated by him on the groun d

,

t h at it i s p ar tly executory At p p 5 2 5 6 Cozen s H ardy M E . .

-
,
-
. .

said

We h ave h ad our attention c al l ed to a great numb e r of

1

c as e s dea ling wi th th e circum st ance s under whi ch an d the

extent to which an inf ant may b e b oun d by an d b e inc a ,

p abl e of repudi ating a contr act m ade by him during i n

‘

fancy F ar b e it from me to say th at th ere h as not been

.
 1 3. N E C E S SA R I E S . 11

s ome 'development of the l aw s ince t he a e when the

g
' '’
ea rl i eSt c asé s which h ave be en cited we re d et i d ed but it i s
'

impo rtant to remembe r th di as e arly as C oke Co L itt .

1 72 A it h as been held th at an i nf ali t s cont ract for

‘ ’

nece ss arie s i s binding an d it was l aid down by him th at

,
.

th at doctri ne al s o applied not merely to bre ad an d chees e

an d cloth es but to educ ation an d in struction
,
.

An infant c annot be s ued on a negoti able in s trument or

a bond with a pen al ty even though given for the p rice of
,

nec e s sarie s but he may be s ued for the r eason able price of the
,

nece ssarie s an d app a rently he may be s ued on a bond wi thout

,

a pen alty given for nece ssa ri es the cl aim being tre ated as one
,

upon a s imple contr act .

In re S ol t yko f
f[1 8 9 1 ] 1 Q B 4 1 3 ; W alter v E ver ard
,
. .
,

[ 1 8 9 1 ] 2 Q B 369 ;.B e a m v B e atty 1 9 0 2 4 C L R 5

. 5 4 , ,
. . . .

A person m aint aining a lun atic i s entitl ed to recoupment

f rom the est ate of the lun atic h aving regard to the po s ition i l l
'
,

l ife of the lun atic A pers on wh o lend s to the pers on m ain

.
,

taini ng the lun atic money which i s applied in the p rovi s ion of
,

n ece ssa ri es for the m a inten ance of the lun atic i s entitled to be ,

subrogat ed to the po s ition of credito rs for such nec es s a rie s

Who h ave r eceived p ayment out of the money adv anced .

In re B e av an [1 9 1 2 ] 1 Ch 1 9 6
, . .

1 4 . Th e su b j ec t mat t er o f
th e c on t r ac t .

The S al e of G ood s Act ( On t s 2 ; U K s 62 ) p rovide s . . . .

“ ”
Goods sh all include al l ch attel s p e rs on al other th an
things in action an d money ; an d sh all include emblem ent s ,

indu stri al growi ng crop s an d things att ached to or form

,

ing p art of the l and which ar e ag reed to be severed before

s ale or under the c ontr act of sal e .

A di stinction h as been drawn as t o [the sale of c rop s ] be

tween wh at are c al led emblement s crop s p rod uc ed by culti

f
,

vation or r uc t us i n d ust r i al “ an d growi ng gr ass timber or

f f
, , , ,

r uit upon t re e s which ar e c all ed The law

f
,
r uc tus n atu r al es .

is settled thu s I f the ro ert i s to g a t er the cro s ar e

.
p p y p p
se ver ed from the soil then both
i tr uc t u
s M ifl fifl fifi a nd
“up“;
i us n o es a r e
good s within t h e me anin
g of th e al e
 12 CH AP T E R I . C O N T RA C T O F S A L E .

cd ., 1 9 2 0, p . 8 3.

Mos t of the d ec i sions before the Act a ro se on con struction

of the S t atute of F r aud s [see ch apter which us es t h e
exp re ss i on goods W
“
are s a nd merch andi se s
,
”
an d thi s ex
, ,

p ress ion was somewh at artifici ally extend ed in order to bring

contract s of sale wi thi n the 1 7 t h section of th at Act r ather
th an the 4 t h Which does not recogni s e p art p e r form ance Oh
,
‘

v i o u sl y deci s i on s on thos e Word s mu s t be applied with c aution

to the p resent de fi ni tion ; whi ch ap p l i es not o nl y to s 4 [On t .

s 6: s ee ch apter 2
. 2 4 ] ( rep roducing the 1 7 t h s ection of the
,

St atute of F r aud s ) but t o the wh ol e Act ,

.

Ch ahn ers S ale of Good s 7 t h cd 1 9 1 0 p 1 4 3

, ,
.
, ,
.

”
A s to
“
goods see al so B enj ami n S al e 5 t h ed 1 9 0 6 pp
1 73 f f2 5 Hal sbury L aws of E n gl and p 1 1 2 A s to crop s
, . .
, , , ,

. , ,
. . ,

st andin g timb er etc see Cro s by v W adsworth 1 80 5

,
., 6 E as t . , ,

60 2 ; Smith v Surm an 1 8 2 9 9 B
. C 5 61 2 3 R C 2 30 ; Mar
, , . .
, . .

sh al l v . Green 1 8 75 1 C P D 35 ; M cNeil l v H aine s 1 8 8 9

, ,
. . . . , ,

1 7 OR 4 7 9 ; H a ndy v Car r ut h er s 1 8 9 4 2 5 O R 2 7 9 ; Morg an

. .
_
, ,
. .

v R u ss ell Son s [1 9 0 9 ] 1 K B 35 7
.
, . .

The S ale of Good s Act ( On t s 7 U K s 5 ) p rovide s . . . . .

7 The good s whi ch form the s u b j ect of a con

tract of s al e mav b e either exist ing goods owned or p o ss es
.

sed by the s eller or go od s to b e m anuf actured or a cquired

,

by the s ell er after the m aking of the contract of sale in ,

“ ”
thi s A ct c all ed future goods .

( 2 ) There may be a contr act for the sa le of good s t h e ,

a cqui siti on of which by the s eller dep end s up on a contin

g en c y which may or may not h app en .

( 3) Where by a contract of s al e the se l ler purp orts t o

ef fect a p re s ent sale c f future g o od s t h e cont ract op er ate s ,

as an ag reement to s ell the good s .

A s to the di stinction between exi sting an d future goods

an d i t s con s eq uence s s ee ch apter 3 .
,

G o od s are a l s o d i st i n gui sh ed as being sp ecific o r asc er

- '
r

gen er i c or un asc ert ai ned Thi s di st incti on i s al so

fl t ai n ed an d
'
"

, .

d i scu ss ed in c h apter 3 .
 § 15 . DE S T R U CTI O N OR DE T ER I O R ATI O N . 13

1 5 . D est ruc t i o n or d et eri orati on o f

th e go o d s .

( 1 ) B e or e f the c on tr ac t .

I f one pers on purpo rt s to m ake with another a contra ct o f

sale rel ating to s p ecific goods which un known to the p arties

h ave ce as ed to exi st at the time of the contract the contract ,

i s v oid on the groun d of mutu al mi s t ake .

Cou t u ri er v H as tie 1 8 5 2 5 E L G 67 3 2 3 R C 2 04 .
'
. . . . . .
, , ,

The rule i s con fined t o s pecific good s th at i s whi ch as , , ,

defined by the S al e of G ood s Act ( On t s 2 ; U K s ar e . . . . .

identified an d a gre ed up on at the time the contr act of sal e

”
i s m ade .

The S ale of Good s Act ( On t s 8 ; U K s 6) p rovide s . . . . .

8 Where there i s a contr act for the sale of s pe cific

.

good s an d the goods wi thout the kn owledge of the s eller

,

h ave p eri shed at the time when the contr act i s m ade the
‘

contract i s void .

P e ris h i s not defined in the s t atute but it i s ap p r e

not onl y i f
,
“ ”
hended th at the g oo ds would have p eri shed
they were phy s i cal l y des troyed but al s o if
,

t he y h ad ce as ed to ,

m
exis t in a comm erci al s en se , t h at i s if their mercha nt able
s

ch ar acter as s uch i b y been l ost

, t es c cmt mn inmt ed wi t h
sew a ge an ,
therefore u n sal eab e as d ates ( A s fa r v B lundell . ,

[1 89 6] 1 QB 1 2 3 : ins urance ) or cement whi ch h ad los t

.
, ,

t h rou gh moi s ture i ts p rop e rti es as such ( D uthi e v H ilton

, . ,

1 8 68 L R 4 C P 1 38 : freight ) or a shi p which i s a mere con

,
. . .
.

ger i es of timber ( per P arke B in B ar r v Gi bs on 3M . .

, .

W . or has ce as ed to be c ap able of Car ryin g a ca r go ( per

A L Smith M E in Ni ckoll v A shton [1 9 0 1 ] 2 K B 1 2 6at p
. . . . . , . .

1 33.
B enj amin , S ale ,
5 th cd ,1 9 0 6 p
.
, . 140 ; s ee al s o Ch al mer s ,

S al e of Go od s 7 t h
,
cd ., 1 9 1 0, p . 2 8.

In the Un i ted St ate s it i s p rovided by the Unifo rm S al es

Act as fol lows
7 Where the p arties p ur p o rt to sell s pecific
.

good s an d the goods wit hout th e knowl edge of the s el ler

,

h ave wholl y p er i shed at the time when the agr eement i s

ma de the agree ment i s void
, .
14 C H A P T E R I . C O NT RA CT O F S A L E .

( 2 ) Where the p artie s purp ort ell s p ecific goods to s ,

an d the good s without the kn owledge of the s eller h ave

p eri s hed in p art o r h ave wholly or i n a m ate r i al p art so

deteri or at ed in qu ality as t o be sub st anti ally ch anged i n
ch aracter the b uyer may at h i s option treat the sale
,

( a ) as a voided or ,

( b ) as tr an s ferring the prop erty in al l of the

exi sting goo d s or in so much thereof as h ave not d et eri o r
a ted an d as binding the buyer to p ay the full a gree d p rice
,

if the sal e was indivi sible or to p ay the a greed p rice for

the good s in which the p rop erty p as s e s if the sale was
divi sible .

(2 ) A f ter t he c o n t r ac t .

I f the s p ecific goo d s which ar e the s ubj ect m atter of t h e

contract peri sh or beco me det eriorated after the m aking of the
contract the e f
,
‘

fect of the des truction or deterioration of the

good s i s a qu es tion of the op er ation or perform ance of the con
tract .

d s ar e at the ri sk

M artine au v Kitchin g 1 8 7 2 D R 7 QB 4 36; Ingli s

.
, ,
. . .

v R ich ard s on 1 9 1 3 2 9 O L R 2 2 9 1 4 D L R 1 37
. , ,
. . . , . . .

The S ale of G ood s A c t ( On t s 2 2 ; U K s 2 0 ) p rovid es

'

. . . . .

2 2 Unl ess othe r wi s e a greed the g oo d s rem ain at the

.
,

s el ler s ri sk until the p rop erty therein i s tr an s ferred t o the

’

buyer but when the p roperty therein i s tran sf erred to the

,

b uyer the good s ar e at the buyer s ri sk whether delivery

’
,

h as be en m a de or not pr o vide d ,

( a ) Th at where delivery has been del ayed through the

f aul t of either the buyer or s eller the goods ar e ,

at the ri s k of the p ar ty in f aul t as regards an y

lo ss which might not h ave occurred but for such

f ault
( b ) Th at n othin g in thi s s e ction s h all af
f
.

ect the dutie s

or l i abilitie s of either seller or buyer as a bailee o f
the good s of the other p arty .
 1 5. DE ST R U C TI O N OR DE T ER I OR ATI O N . 15

F ul t i s defi ned by the st atute ( On t s 2 ; U K s 62 )

a . . . . .

“
as me ani ng wrongful ac t or def ault The qu es tion when .

the p roperty in good s p ass e s from the seller to the buyer i s

di scu ss ed in ch apter 3 .

It f oll ows from the gener al rul e above st ated th at w h ere

there i s a c ontr act to s ell s pe cific good s an d s ub s equently ,

with out an y fault on either p art the go od s peri s h after the ,

property h as p as s ed t o the buyer the buyer in t h e ab s ence , ,

of an a greement t o the c ontr ary mu s t be ar the lo ss an d i s ,

li able on the c ontr a ct n otwith s t andin g th at the g ood s h ave

peri s hed
The re sul t i s di ff
.

erent if the good s p eri s h before t h e p ro

p erty p as s e s t o the buyer an d the S al e of Good s Act ( Ont s
,
o
.

9 ; U K s 7 ) p rovi de s
. . .

9 Where there i s an a greement to s ell s p ecific good s

.
,

a n d s ub s equently the good s without an y f ault on the

p art of t h e s eller or buyer p er i sh b ef
,

o r e th e ri s k p ass e s
,

t o the buyer the a greement i s thereby v oide d

,
.

I n the United St ate s the Uniform S al es Act ( s 8 ) m ake s .

s peci al p ro vi s ion not only for the c as e of the good s wholly

,

pe ri shing but al s o for the c ase of p art of the goods

,

peri shing or the whol e or a m ateri al p art of t h e good s so de

t eri or at i n g in qu ality as to be s ub s tanti al ly ch anged in ch a r
ac ter .
w s 7 of the s ame st atute quot ed above
.
,
.

Speci al provi sion i s als o ma de by the S al e of Good s Act

( On t s 32 ; U K s 32 ) .f o r the cas e of t h e seller s f ailur e to
’
,
. . . . .

make s uch contr act with the c arr ier on b eh alf of the buyer as

s. 33 ; U K . . s

6,

1 6. Th e c on s id erati on f thor e c on ract . t

Under the S ale of Good s Act ( On t s 3 ; U K s 1 ) the con . . . . .

“ ”
s ider ation i s a money con s idera tion c al led the p ric e , .

Ch almers ( S al e of Good s 7 t h c d 1 9 1 0 p 6) says th at ,

.
, ,
.

ap ar t f r om the s ta tute it s eems th at r ul es of l aw rel ating t o

,

sa l es apply in gener al to contr act s of b ar ter or exch an ge ; but

the que stion h as been by no me ans fully work ed out The bi ll .

o ri gin all y conta ined a cl aus e applying i t s p rovi sio n s mut atis
16 CH A P T ER I . C O N T R A CT O F S A L E .

mutan d i s to exch ange s but th e cl aus e was cut out b y the C om

,

”
mon s Select Committee In the United St ates the Uniform
.

S ale s Act ( s 9 ) p rovide s th at the p ric e may b e m ade p ay ab le

.

in an y p ers on al p rop erty .

I f the co n sideration con si st s p artly of money an d p artly of

g oods the p rin c iple s rel ating to sale s an d not tho se rel ating
, ,

to b art er or exch an ge apply ,

.

M ason R i sch v Chri stner 1 9 2 0 4 8 C L R 8 5 4 D L

. , ,
. .
,
. .

R . 65 3.
The S ale of Good s Act ( On t ss
‘
U K ss 8 9 ) p ro
. . . . . ,

vide s
10 Th e p rice in a contr act of sale may b e fixed
.

by the contr act or may be l eft to b e fixed in m ann er there

,

by a greed or may b e determined b y the cou rs e of de aling

,

between the p artie s .

(2) W hi e
l the p r ice i s not dete r mi ned in accord ance

with the t o oin r ow si on s t h e buyer mu st p ay a r ea

o ff ct dep endent on the cir

a c um st ance s of each p artic ul ar
c ase .

11. Where there i s an a greement to s ell go od s on

the term s th at the p rice i s to b e fi xed by the v alu ation of
'

a t hird p ar t y a ,
r ar t c annot or d o es not
m ake s u i o the r ec i s av 0 1 d
p rovi d ed
t at if th g
e ood s ther eof h a ve been delivered
to an d a r o r i ate the b he mu st a a re ason
a e p rice t hgmgp f
( 2 ) Where such third p arty i s p revented from mak '

ing the v al u ati on by the f aul t of the s eller or buy er the ,

F aul t
defin ed by the st atute ( On t
is . s. 2 ; U K . s. 62 ) as
“
me aning wrongful ac t or def aul t .
18 C H A P T E R I I T HE STATUT E OF FR AU D S
. .

And from an d after the said four an d twenti eth d ay

4.
of June [ 1 677 ] n o acti on s h all b e brou gh t whereby t o
cha rge an y ex ecutor or admi ni strator up on an y speci al
p romi s e to an swer d am age s out of hi s own e st ate ; or
whereby to ch ar ge the defend ant up on an y speci al p romi se
to an s we r for the debt def ault or m i s c arri ag e s of an other
, ,

p er s on ; or t o ch ar ge an y p e r s on up on an y a greement
m ade upon con sider ation of m a rri age ; o r upon an y con
'

tract or sale of l and s tenem ent s or heredit am ent s or an y

, , ,

int e re s t in or c oncerni n g them ; or upon an y a gree ment

which i s not to be p e r formed within the s p ace of one ye ar
from the m aking ther eof ; unles s the ag reement up on which
s uch acti on s h all b ebrou ght or s ome memor andum or no t e ,

thereof sh al l b e in writing an d s igned b y the p art y to b e

, ,

ch arge d ther ewith or some other p ers on thereunto b y him

l awf
,

ully authorized .

Thi s s ecti on h as b een r e en acted i n Ontario in subst an -

ti ally the same t erms f 1 9 1 4 c 1 02 s 5 ,

. ,
. .

In a b oo k s p eci al ly devoted to t h e l aw of sa le of good s it i s

not neces sary to comment at length on s 4 Ordin aril y a . .

c ontr act for the s al e of good s wi ll not c ome wi thin s 4 but it

-
. ,

may h app en th at it come s within thi s s ection as wel l a within s

8 1 7 of the St atute of F r au d s or the corre s p onding p ro vi sion

.

of the S ale of Good s Act I t h as b een held for ins t ance th at s

f
e e the St atute of F raud s , so f
. , .
,

ar as it rel ate s t o a reement s

f
g
not to be p efi ermeg within the sp ac e e one ye ar from t h e

i s not r d
f
m akin g t hereo I ep p li g to eg e emen t s for the s al e g1
b the S le of Goo d Act Ther fore
m ,

an
ep eeile y a s e an .

a r ee t i s not t ak en out of t h
tion 0 4 t of F raud s b r eas on of ther h avi n

good s s old .

P re sted Miner s C o v G a rdner [1 9 1 1 ] . .

, 1 KB . 4 25 ; as to
accept ance an d receipt s e e 26 ,
.

2 3. S e c ti on 1 7 o f
th e S ta t ut e o fF r aud s.

S . of the St atute of F r aud s 2 9 Car 2 c 3 i s as foll ows

17 , .
,
. ,

17 And b e it en acted th at from an d after the said four

.
,

an d twentieth d ay of June [1 6 77 no co ntract for the sale

of an y go od s w are s an d merch andi s es for the p rice often
'

, , ,
 § 2 3. S TATUT E OF FR AU D S . 19

p ounds sterlin g or up wards shall b e all owed to b e go od

, , ,

except t h e buyer sh all accept p art of the good s so sold an d ,

actu ally receive the same or give s omething in ea r ne st to ,

bind the b argain or in p art p ayment or th at s ome note

,
-
,

or memorandum i n writing of th e s aid b argain be m a de ,

an d s igned b y the p arties to b e cha rged b y s uch cont ra c t ,

or their a gents thereunto l awful ly a utt ho r i z ed .

”
The use of the word b argain in the s ection lent s ome
“

s up port to the ar gum ent th at the s ection applied only to a

“ ”
b arg ai n an d sale th at i s a sal e as di stin gui shed from an
I n 1 8 2 8 all doubt as to the a pplica tion of
, ,

a gree ment to s ell .

s 1 7 t o ex ecutory contr act s was removed by s : 7 of L ord T en

.

t erd en s Act 9 G 4 c 1 4 w hi ch aft er reciting s 1 7 of the

’
, . ,
.
, , .

St atute of F raud s an d a corre s p onding I ris h st atute en act ed : ,

That the sai d e nactments sh all ex t end to al l contra ct s

for th e sal e of good s of the v alue of ten p ound s sterling
an d upw a rd s notwith st anding t h e good s may b e intended
,

to b e delivered at som e future time or may not at t h e ,

time of s uch contr act be actu ally m ad e p rocured or p ro ,

v i d ed or fit or re ady for delivery or s ome ac t ma y b e

, ,

requi s ite for the m aking or completing thereof or render

in g the same fit for delivery .

S 1 7 of the St atute of F r auds an d s 7 of L ord Tent er d en s

. .
’

Act were re en ac ted in Ont ar i o in a cons olidat ed form

-

1 9 1 4 c 1 02 s . in which by error th e wo rd price was

.
“ ”
, ,

“ ”
ret ain ed ins te ad of the word v alu e notwiths t andin g th at
the e f
f
,

it h ad been held in ect of reading the two

R eeve , 1 8 5 6, 1 8 G B . 5 8 6 ( agreement s for

sa le an d for ag s i tment in one contra ct ) ; Will i s S al e of
,

G ood s p 63 ,
.

2 4 . Th e S al e f
G
o oo d s Ac t .
The St atute of F rauds s 1 7 an d L ord Ten te rd en s Act , .
’
,

8. 7 h ave now been repl aced by t h e S al e of Good s Act ( On t

, .

s. 6; U K s 4 ) which provid es :
. . .

6 A contr act for the sal e of an y good s of the

.

f
v alue of fo rt doll a rs or upward s sh al l n ot b e enforceable
by aet i o unle ss the buyer sh al l ac cept p a rt o the good s
y
 20 C H A P TE R I I T HE STATU T E OF FR AU D S
. .

so s old an d actu ally r ec e ive the same or give s omething

, ,

in ear nes t to b ind t he cont ract or in p art p ayment or un ,

le ss s om e n ote or memor andum in wr iting of the contrac t

be m ade an d s i gn ed by th e p arty to b e ch arg ed or hi s agent
in th at b eh al f .

( 2 ) The p rovi sion s of thi s s ec tion sh all apply t o eve ry

s uch contr act notwith s t anding th at the g o od s may be i n
,

tended to b e delivered at some future time or may not at ,

the time of contract be actu ally m ade p rocur ed or p r o , ,

vi d ed or fit or ready for delivery or s ome ac t may be r e

, ,

q ui si t e for the m aking or compl eting thereof or render ,

ing th e same fi t for delive ry' '

( 3) There i s an accept ance of good s within the me an

in g g M y er oes an
W m
ti on t o the go od s w hi ch rec o gnize s a pre -
e xi s t i n c on

or man c e o t e c ontr a ct or not .

I n the United Kingdom the amount mention ed in sub s 1 is -

.

£1 0, an d it i s p rovided by sub s 4 th at the p rovi sion s of t h e

-
. .

s ection do not a pply to S cotl and In New B run swic k an d .

Nov a Scoti a the amount mentioned in sub s 1 i s $ 4 0 as in -

.
,

Ont ario where as in P rince E dw ard I s l and it i s $ 30 an d in

, ,

Al be rt a B riti sh Columb i a M ani tob a S ask atchew an an d t h e

, , , ,

T errit ori es it i s $ 5 0
Action i s defined as includin g countercl aim an d set of f
.

( ch apter
The s ection ap plies onl y to a contract for the sale of good s ,
“
th at i s a contr act whereby the seller tr ans f ers or agr ees to
tr ans fer the p rop erty i n goods to the b uyer f or a m oney c on
”
si der ati on ( see ch apter 1
,
G oo d s ar e defined as i n
,

cludin g al l ch attel s p ers on al other th an things in acti on an d

mon ey an d including emblement s indu stri al growin g crop s
, , ,

an d thing s atta ched to an d forming p art of the l and which ar e

ag reed to be s ev er ed before s al e or under the contr act of sale .

“
In the St atute of F r auds the exp re ssion us ed was goods ,
”
w are s an d merch andi ses
, See ch apter 1 1 4
.
,
.

In th e United State s t hi ng s in action ar e l i kewi s e excluded

,
“ ”
b y the de fi nition of go od s for the gener al pu rpo s es of t h e
but ar e include d f
‘

s t a tute o r t h e p u r p os e of e St atute of
'

h
,
t
 24 . T HE SA L E OF GO O D S A CT 21

F rau d s an d the provi sion of the Uniform S ale s Act ( 8 4 )

,
.

which co r r esp ond s with the s ection now under co n s ideration

“
begins with the words A contr act to sell or a s ale of an y
good s or chos es in action of the v al ue of five hundred d oll ars
or upw a rd s sh al l not be enf
,
orce able by a ction unle ss etc ”
, , .

Cf H umble v Mi tchell 1 8 39 1 1 A
. . E 2 0 5 2 3 R C 2 0 7 an d
, ,
. . ,
. .
,

Americ an note s at pp 2 1 1 1 2 .
-
.

The s ection of the S ale of Good s Act applie s to en exec u

t o rv contr act to sel ( as i s m ade c le ar by sub s 2 w hi ch r e
l -

en act s in ef
. ,
__

fect s 7 of L ord Ten t erd en s Act quoted i n

.
’

not withs t andin g th at the good s may not at the time of s uch " ‘

contract be actu ally m ad e p r ocur ed or p rovi d ed or fit or re ady , ,

for delive ry or s ome ac t may be r equi s ite for the m akin g or

,

completing thereof or rendering the same fit for delive ry,

’
.

The s t atute does not however ap 1 to a contr act for work , ,

an d l abour .

In the United States the st atutory p rovi sion l ast quoted i s

qu alified as f oll ows ( Uniform S al e s Act s “
but if the , .

good s ar e to be m anuf actured b y the s ell er e sp eci ally for t h e

buyer an d are not suit abl e for sal e t o othe rs in the ordin a ry
cours e of the sell er s bus iness the p rovi sio ns of thi s s ecti on
’
,
”
sh all not apply T hi s qu alific ati on i s intended to rep roduce
.

the r ul el ai d down by Sh aw C J in Mixer v H ow arth 1 8 38 .

~

, .
, ,

2 1 P ic k ( 38 M ass ) 2 0 5 an d by Am es J in Godd ard v B i n

. .
,
-
.

ney 1 8 7 4 1 1 5 Mas s 4 5 0 See al s o the Am eric an note s to

, ,
:
. .

L ee v Griffi n 2 3 R C at pp 1 9 67
. . . .
-

In L ee v Gri f
,

fi n 1 8 61 1 B S 2 72 2 3 R C 1 9 1 it was
held th at where a den t i st m ade t wo s et s o f
. . . . .
, , , ,

f al s e teeth upon the '

oral order of A ; an d A died before the teeth could be fitted no ,

a ction woul d lie a gains t A s executor t h e c ontr a ct being one

’
,

for the sal e of goods B l ackbu r n J s aid .

I t is cle ar that there was n o suf ficient memorandum of

t h e contr act within t h e St atute of F r aud s The other que s
tion i s whether t he pre s ent was a contract for the sale of
,

good s or for work an d l abour I n order to ascert ai n t hi s

, .

you mu s t of course in each c as e look at th e contr act its elf

I f the contract b e such th at i t will res ult in the sale of
, , .

a ch attel the p rop er for m of action if the employer re

, ,

fu s e s to accept the article wh en m ade woul d be for not ,

22 C H A P T ER I I T HE S TATUT E . OF FR AU D S .

accepting B ut if the work an d l abour be b es towed in

. ,

s uch a m anner as th at the re s ult would not be anything

whi ch could p rop erly b e said to b e the s ubj ect of sal e ,

then an action for work an d l abour i s the p rop er remedy .

An attor ney employed to draw a deed i s a f amili ar ex

ample of the l atter prop os ition ; an d it would be an abu se
of l an gu age to say th at the p ap er or p archment of the
d eed were good s s old an d deliver ed H er e if t h e teeth .

h ad been deliver ed an d a ccepted the po n t r ac t for the sale

.
,

of a ch attel would h ave been complete I do not think

th at t he gel el j ye v alue of t h e l ab eur an d of the m ateri el s
on which it i s be sto wed c an in an c as e b e the te st of wh at
1 8 t he c aus e of a c t ion ; an d th at if B envenuto Cellini h ad

contr acted to execut e a work of ar t for another much as

the valu e of
,

the skill might exceed th at of the m ateri al s ,

the contract would h ave been none t he le ss for the sale of

a ch attel .

The following ar e s ome of the c as e s

Cl ay v Yate s 1 8 5 6 1 H . N 7 3 ( p r i nting b o ok for
, , . .

author work an d l abour )

-
.

Wolfenden v Wil s on 1 8 7 3 33 U C R 4 4 2 ( tomb st one

.
, , . . .

sale ) .

I saac s v H ardy 1 8 84 Cab . E l 2 8 7 ( p icture : sale )

, , . .

C an ad a B ank N ot e C o v Toront o Ry Cc 1 8 9 5 2 2 0 . . .
, , .

A R 4 62 ( p rinting debe nture s in s p eci al form on p aper

.

s uppli e d by printer : s al e ) .

Alli s v W alker 1 9 1 0 2 1 M an R 7 7 0 ( engine to be

.
, ,
. .
'

in st alled on p remi s es : wor k an d m ateri al s ) .

See al so B enj amin S ale 5 t h ed 1 9 0 6 pp 1 5 1 f ,

f; Willi s
, . , . .
,

S ale of Good s p p 64 66 a rticle in 1 L Q R 9 ( J anu ary 1 8 8 5 )

,
.
-
. . . ,

b y Stephen an d P ollock .

2 5 . Al t er ati o n s i n l anguage.

A comp ari son of the S al e of G o ods Act wi th s 1 7 of the

St atute of F r auds di s cl o se s the followi ng di f
f
.

erenc es of word
in g
”
( a ) The word good s h as repl aced the words g oods
‘

”
wa re s an d m e rch andi se s
,
A s to the definition of good s in
.

the S ale of Good s Act ( On t s 2 ; U K s s ee ch apter 1 . . . . . ,

14 .
 A L T ER ATI O NS IN LANGUAG E . 23

b
( ) The word “ v alue h as repl ac ed the word p ric e .

The fo rmer word h ad been us ed in L ord Ten t er d en s Act an d ’

it h ad been held th at the efi ec t of rea ding L ord Ten t er d en s ’

Act an d s 1 7 of the Statute of F r aud s together was th at s 1 7

. .

“ ”
mus t be con st rued as if it had u sed the word v alue S ee .

2 3.
( c ) The Word s contr act sh al l not be enforce ab l e
a
”
by action h ave repl aced the words 11 0 contr act s h all

be allowed to be go od
”
See notes below I n t he S al e o f Good s
'

. .

“ ”
Act ( On t s 2 ; U K s a ction include s cou ntercl aim
f
f
. . . . .

and s et o .

( d ) The word contract has repl ac ed the word bar

g ain . Since the p ass in g of L ord Ten t e r d en s Act the a r gu
’

“ ”
ment form erly b as ed upon the u se of the word b arg ai n in
s 1 7 of the S t atute of F ra uds was no longer t en able
. See 2 3 . .

“
( e ) The words p arty to be ch arged or hi s agent in th at
“
beh al f have repl aced the word s p arties to be ch ar ged
or their agen ts thereunto l awf ul ly authoriz ed ”
It h ad be en .

h eld e m
t the note or memor a ndum need not b e si
gn ed by b oth
p arti es to the contract , but th at gnl y the party to be ch ar ged
need s1 g. 11 R eus s v P i cks l ey 1 8 66 L R 1 E x 34 2
. . , , . . .

The view th at the word s no contract s h al l be al

l owed to be good in s 1 7 of the St atute of F r aud s ar e the

'

“
equiv al ent of a contr act s h all not be enforce ab le by
”
action in the S al e of Goods Act an d th at cons equently the ,

S al e of Good s Act has m ade no ch ange in the l aw in thi s r e

sp ect i s the p rev al ent view
, M addi s on v Alders on 1 App
. . ,
.

Cas 4 67 at p 4 8 8
.
, Th e contrary vi ew i s vigorou sly m ain
. .

t ai n ed by Willi s ( S al e of Goo ds pp 6 7 Se e al so L ord

, .

F inl ay s j udgment in Morris v B aron [1 9 1 8 ] A C 1 at p 1 1

’
. . . .
, ,

1 11 Morri s v B aron the H o use of L ord s held tha t a contr act

.

for the sale of goods of more th an £1 0 v alue evidence d in ,

writing as required by the S ale of Goo d s Act mi ght be ,

24 C H A P T E R I I T HE S TATUT E . OF FRAU D S .

1 9 1 2 . 2 6 O.L .R . 5 7 9 , 6 D .L .R . 4 7 1 ; S i er i c h s v . H ughes , 1 9 1 8 ,
4 2 O.L .R . 60 8 , 4 3 D .L .R . 2 9 7 ; H a rt ley v . H ym an s , [1 9 2 0 ] 3
KB . 4 75 , at pp . 4 86 f
f
The defence th at the s t atute h as not been c omplied with
mu st b e speci ally plea ded .

v B r an son [1 8 9 8 ] 2 QB 2 1 9 ; as to te r m s
B rutt on . .

where the defend ant i s allowed t o amend at the tri al ,

s e e V ip ond v Si s c o 1 9 1 3 2 9 O L R 2 00
. 14 D L R 129 , ,
. . .
, . . . .

§ 2 6. A c c ep t an c e an d Re c e i p t .

S ub defining accept ance for the purpo s e of the se c

-
. s. 3,
tion adopt s the l angu a ge of B owen L J in P a ge v M org an
,
. . . ,

1 885 1 5 Q B D 2 2 8 at p 2 33 In t hi s c as e there was a s ale of

,
. . . ,
. .

wheat by sa mple The buyer h avi ng received a number of

.
,

sa c ks of whe at delivered under the contr a ct at h i s p remi s e s ,

opened the sa cks an d ex amined thei r contents to see if they

were equ al to sample but immedi ately after doing so gave ,

notic e to the se l ler th at he refus ed the whe at as not b eing

e qu al to s ampl e Cle a rly there was. no a cc ept ance which

wo ul d p reclude the buyer from refu sing the good s as not b eing
in accord ance with the contract but it was held th at th e re was ,

an ac t done by the buyer in rel ation to the g o od s which re _

cogni s ed the exi stence of a contract for the purch as e of t h e

good s by him an d therefore s uch accept ance as j oin ed with
the actu al r ec ei p t of
, ,

t h e good s by hi m would p reclude him

i

from relying upon the St atute of F r aud s as a defenc e In as .

much as a l ater s ection of the S ale of Good s A ct ( 8 35 ) en a c t s

wh at sh all b e suf
. .

ficient accept anc e to p reclude a buyer from

refusing good s as not being in accord ance with the contract ,

it i s ne ce ss ary in the s t atute t o define ac cept ance for the pur -

p os e s o f the St atute of F r auds Since the p as sing of the .

s t atute the s ta tutory definition of ac c ept ance h as b een applied

,

in circum st ance s simil ar to thos e exi sting in P age v Morg an . .

Abbott v Wol s ey [1 8 9 5 ] 2 QB 9 7 T aylor v G re a t

. , . .

E as t e rn R ailw ay [1 9 0 1 ] 1 K B 7 7 4 ; T am es C ann ing Co

h ,
. .

v E ckardt 1 9 1 5 34 O L R 72 2 3 D L R 8 05 ; cf M c L ean
. , ,
. . . , . . .

v Mc Ghee 1 9 2 0 30 Man R 38 6 5 3 D L R 1 4 ( assump

. , , . .
,
. . .

tion of owne rs hip ) .

26
‘

C H A P TE R I I T HE S TATUT E OF FR AU D S
. .

2 7 . E ar n est or part p aymen t.

‘

In o rder to ren d er enforce able a contr act within t he S ale

of Goo d s Act ( On t s 6; U K s 4 : . . it i s s u fficient th at
. . .

the b uyer gives s omet hing in e ar ne st to b ind t h e contr act or

in p art p ayment .

The giving of e ar ne st howeve r common in ancient time s , ,

has fallen s o much into di s u s e th at the two exp re ss ion s in ,

thi s cl aus e of t h e St atut e of F rau d s give s omet hi n g i n e arn ,

‘

” “ ”
e st ,or in p art p ayment ar e often tre at ed as me aning ,

the same thing although the l ang uag e Cl e arly intim at es tha t
,

“ ”
the e arne s t i s s omething t o bind the b a rg ain ( or the Con ,

t r act ) where as it i s m anifes t th at there can b e no p a rt p ay.

,

ment till after the b a rg ain h as b een b ound or clo s ed E ar nes t .

may b e m oney or s ome gift or token ( am

,

,
ong t he Ro m an s
u su ally a ring ) given by the buyer t o the s ell er an d accepte d
, ,

by the l atter to m a rk the fin al conclus ive ass ent of both s id es

to the b argain ; an d thi s was formerly a p rev alent cus tom in
E n gl and And an e ar ne st did not lo s e .i t s ch ar acter bec au se
.

the same thing might al so av ai l as a p art p ayment .

B enj amin S ale 5 t h c d 1 9 0 6 p 2 2 4 ; se e al s o H owe v

, ,
.
, ,
. .

Smith 1 8 8 4 2 7 Ch D 8 9 ; M arch v B anto n 1 9 1 1 4 5 Can

, , . . .
, ,
.

S C R 338 ; B rown v W al s h 1 9 1 9 4 5 G L B 64 6
. . . .
, ,
. . . .

A rt paym ent , i n order to sati sf the st atute tenet h

'

p
a
y , e

f
acce t v t e s ell er Th e t anc e n eed not however be
p .
,

n u 11 ifi ed ro v i d e d it i s of s uch a n ature t hat i t a or ds som e

reco gnition of the contract on the uyer s a

p
P arke r v C ri sp Co [1 9 1 9 ] 1 K B 4 8 1
. .
,
. .

0 Where upon an or al contra ct for the s upply of good s it

,
-

Wa s a term of the contr act th at a su m of money w hi ch h ad

be en overp aid to the s eller up on a p revious sale shoul d b e r e
ta i n ed by t he s ell er on ac count of th e p r i c t h e go od s c on
tracted to be s upplied it was held th at th ere was not a p art
,

p a yment which would sati s fy the S al e of Goods Act To b old

“ '
’

oth e r w i se would b e to al low the s tatute to b e s ati s fied b y an

or al cont ract without anyt hing f ur tli er b eing don e to evi dence
‘

the exi stence of the cont ract

No rt on v D avi s on [1 8 9 9 ] 1 QB 4 0 1 follo wi ng Wal
.
,
. ,

ker v Nu ss ey 1 8 4 7 1 6 M
. W 30 2
, , . . .
 § 2 8. N OT E OR M E M OR AN D U M I N W R I TI NG . 27

28 . Not e or memor an d um i n wr i t i n g.
I n order to render enforce able a contract within t h e S ale
of Goo ds Act ( On t s 6; U K s 4 : se e . . it i s su ffici e nt
. . .

tha t s ome note or memorandum in Wr iting of the contract b e

m ad e an d si gned by the p arty to be ch arged or h i s agent i n
'

that b eh alf .

Qu es tions as to the suf fi c i en c y o f

'

the not e o r memor andum

an d of the s ign ature of the defend ant or h i s agent an d as to

the agent s authority may ari se under s 4 of the St atute of

’

.
.

F r auds as well as under th e S al e of Good s Act ( s 1 7 of the .

S t atute of F raud s ) The d eci s ions on t hes e que s tion s ar e s o

. .

numerou s th at n o attempt c an be m ade here t o do more th an

refer t o s ome of th e recent c as e s The e arlier E n gli sh c ase s
1 34 f f
.

ar e co l lec ted in 2 5 Hal sbu ry L aws of E ngl and pp

:
. .,
, ,

an d B enj amin S ale 5 t h ed 1 9 0 6 pp 2 30 m; cf : Ch al mers

, ,
.
, ,
. ,

S ale of Good.s 7 t h c d 1 9 1 0 pp 2 3 4 ; Wil li s S ale of Good s 9 8 -

ff; W ain v Warl t ers 1 804 5 E ast 1 0 6R C 2 30 ; L ayt hoarp

,
. . , ,
, ,

. . . .
, , ,

v B ry ant 1 8 36 2 B ing N C 7 35 2 3 R C 2 39 an d note s i n 6

.

R C at pp 2 4 9 f f; C aton v C aton 1 8 67 L R 2 H L 1 2 7 6R
,
. . ,
. . ,
,

. . . . . . . . . .
, , ,

C 2 5 5 ; Jone s v V ictori a Grav ing D ock Co 1 8 77 2 Q E D

. . .,
,
. . .

31 4 6 , Smith v Surm an 1 8 2 9 9 B a C 5 61 2 3 R .
, ,
. .
,
.

C . 2 30 .

As t o the contents an d n ature of the note or memorandum .

s ee the following more rece n t c ase s

D ew ar v M i n t o ft [1 9 1 2 ] 2 K B
. 373 ( p artie s n amed
, .

but not des c ri b ed as s eller an d buyer ; identific ation of

doc ument referred t o ) .

L ov esy v P al mer [1 9 1 6] 2 Ch 2 33 ( p rincip al not

.
, .

n am ed or de sc ribed ) .

North v L oomi s [1 9 1 9 ] 1 Ch 378 ( omi ss ion of unim

.

po rt ant stipul ation waived by pl ainti f f

.
,

)
-
.

Auerb ach v Nel son [1 9 1 9 ] 2 Ch 38 3 ( identific ation of

. , .

s ubj ect m atter ) .

Stoke s v Whi c her ‘

. 1 Ch 4 1 1 ( r eading doc u, .

ment s together ) .

K ee n v Me ar [1 9 2 0 ] 2 Ch 5 7 4 ( only one of two ven

.
, .

dors mentioned ) .

S tand ard R e alty Cc v Nichol son 1 9 1 1 2 4 O L R 4 6 .

, , . . .

( cont r act in n am e of agent ) .

28 C H AP T E R I I T HE STATU T E . OF FR AU D S .

B ailey v D aws on 1 9 1 2 2 5 O L E 38 7 1 D L R 4 87
. , ,
. . . ,
. . .

( rea ding document s together ) .

Maybury v O B ri en 1 9 1 1 2 5 O L R 2 2 9 ( 1 ead i n g
.
’
, ,
. . .

documents together ; content s of w ritin g ) reversed 1 9 1 2 , , ,

2 6C L R 62 8 6D L R 2 68 on other ground s
. . . . . . ,
.
.

Thom son v P l ayf

,

air 1 9 12 2 6 O L E
. 6D L R , ,
. . . . . .

2 63 ( receipt an d copy of receipt ) . .

D ora n v M c K i nn o n 1 9 1 6 5 3 Can S C R 60 9 . .

R 307 af
. . .
, , ,

. ,
firming 35 O L E 34 9 2 6 D L R 4 8 8 ( re ading . . . ,
. . .

documents t ogether ) .

B ennett v Stodgell 1 9 1 6 36 O L R 4 5 2 8 D L R 639

. , ,
. . . .
,
. . .

( vendor not n amed )

Sp arks v Clement 1 9 1 7 4 1 O L E 34 4 ( identific ation
.
,
. . .

of subj ect m atter ) -

C ampbell v M ahl er 1 9 1 8 4 3 O L R 39 5 af
.

. fi rmed , , ,
. . .
, ,

1 9 1 9 4 5 O L R 4 4 4 7 D L R 7 2 2 ( omis sion of time of

,
. . , ,
. . .

p ayment ) cf H ou s e v B ro wn 1 9 0 7 1 4
. 5 0 0 ( ti me .
, ,

for p aym ent not agreed upon )

Meighen v Couch 1 9 1 3 2 3 M an R 1 1 7 9 D L R 8 2 9 . .

( term s suf
.
, , . .
,
.

ficiently exp re ss ed in l etter s ) .

P e a rs on v O B r i en ; 1 9 1 2 2 2 M an R 1 7 5 4 D L R 4 1 3
’
. , . .
,
. . .

( o m1 ss 1 on of s ome terms ) .

C onley v P ate rs on 1 9 1 2 2 2 M an R 1 2 7 2 D L R 9 4
. , , . . ,
. . .

( reference to future fo r m al c ontract ; agent s for the

‘‘

”
own er )
Selkirk L and Inves tment C o v R obin s on 1 9 1 3 2 . . , ,

Man R 7 74 1 3 D L R 9 36 ( rea ding document s together ;

. , . . .

p rincip al not n am ed ) .

M c I n n i s F arms v M c K en z i e 1 9 1 3 2 3 M an R 1 2 0 1 2
.
, ,
. .
,

D L R 1 00 ( omi ssi on of te rm s )
. . .

P ulford v L oy al O rder of M oo s e 1 9 1 3 2 3 M an R 64 1
. , , . .
,

1 4 D L R 5 7 7 ( contr act in n ame of ag ent )

. . .
-
.

As t o the s ign ature t o the note or memor andum or the ‘

a uthority of the a gent see the f

,

ol o l wi n g c as e s ,

D aniel v Tr ef us i s [ 1 9 1 4 ] 1 Ch 7 8 8 ( a gent authori zed

.
,
.

to si gn document for another p urp ose ) .

No rth v L oomis [1 9 1 9 ] 1 Ch 37 8 ( so l icitor author

. ,
.

iz od to co mplete cont ract ) .

 5 2 8 . N OT E OR M E M OR AN D U M I N W R I TI NG . 29

Thi rkel l v C ambi [1 9 1 9 ] 2 K B 5 9 0 ( soli ci to r i n

. ,
. .

struct ed to deny cont ra ct ) .

G r indell v B as s [1 9 2 0 ] 2 Ch 4 8 7 ( defen ce si gned b y

.
,
.

couns el )
Keen v Me ar [1 9 2 0 ] 2 Ch 5 7 4 ( es tat e ag ent ; p artner )
.
,
. .

St and ard Re alty C o v Ni chols on 1 9 1 1 2 4 C L R 4 6 . . , ,

. . .

( authority of agent ) .

M ayb u ry v O B ri en 1 9 1 2 2 6 O L R 62 8 6 D L R
.
’
, ,
. . . ,
. . .

2 68 ( authority of agent ) .

M c I n n i s F arm s v M c K en z i e 1 9 1 3 2 3 M an R 1 2 0 1 2
. , , . .
,

D L R 1 00 ( s i gn ature of one of tw o p er s on al repre s ent

. . .

A let t er

th e y cont ain the te amat the gentxeet it i s n ot a sufficient no t e ,

or memor andum .

Thi rkel l v C ambi [1 9 1 9 ] 2 K B 5 9 0 di st ingui shi ng

.
,
. .
,

B ailey v Sweeting 1 8 61 9
. 8 4 3 ; Wilkins on v
, , .

E v an s 1 8 66 L R 1 C B 4 0 7 B uxto n v R u s t 1 87 1 L R
, ,
. . . , ,
. .

7 E x. 1 , 2 7 9 .
S ee l o the following c as e s
a s

D ew ar v M i n t of
t [1 9 1 2 ] 2
.
, KB . 37 3 ( repudi ation on
gr ound th at w riter not li able ) .

C ampbe ll v M ahl er 1 9 1 8.
, ,
4 3 O.L .E . 39 5 , a f
fi m d
r e ,

1 9 1 9 , 4 5 O.L .R . 4 4 , 4 7 D .L .R . 7 2 2 ( repudi ation on ground

of mi sunders tanding )
Ma rtin v H aubner 1 8 9 6 2 6 Can S C R 1 4 2 ( lette r
.
, , . . . .
,

admitting c ontr act by a gent but denying ag ent s author

’
,

ity ) followed in P etri e v Rae 1 9 1 9 4 6O L E 1 9

, .
, , . . . .
 C H A P T E R II I .

T R AN S F E R OF THE P R OP E R TY AS BE TW E E N
S E LL E R A ND B U Y E R .
.

31 .S ale an d agr eement to sell .

32 P rop erty an d p o sses si on .

33 Specifi c or as cert ained good s

. .

34 R ule s for as cert ai ning intention

. .

§ 35 S usp en sive an d re s olutive condition s

. .

36 Un as cert ained an d future good s

. .

37 Ap prop ri ation of good s to the contr act

. .

38 Res erv ation of t he r i ght of di sp o sal

. .

§ 31 . S al e an d agree men t to sell .

“
Th e di s tinction b et ween a sale an d an a gre ement to se ll i s
d rawn in the p rovi sion s of t he S ale of G ood s Act alre ady
qu oted ( On t s 33 ; U K s
. . . as foll ow s
. .

3 . Where under a contract of sal e the p rop erty

in th e good s i s tran sferred from the s ell er to the b uyer t h e
contr act i s c al led a sal e ; b ut where t h e t ranfer of the
p rop e rty in the goods i s to t ake pl ace at a future time or
s ubj ect to s ome condition there a ft e r t o b e f ul fi lled the

contract i s c alled an agreement to sell .

(4 ) whe n t h e time

Act ( On t s 2 ; U K s 62 ) al s o con
s . . . .

t ain s the foll owi ng p rovi s ion s

Contr act of s ale s h all include an ag ree m
.
“ ”
ent to s ell
as well as a sale .

“ ”
S ale sh all include a b argain an d sal e as well as a
sal e an d delivery .

The di stincti on b etween an agreem ent to s ell an d a sale i s

fund ament al The former i s a c ontract pur e an d simple At
. .

the time of the contract the p ropert y in the good s does not
p ass but the buyer acquir es a ri ght i n p erson am t oth e tran s
fer of the p roperty upon the h appenin g of an event or the f
,

ul
 31 . S A L E A N D A G RE EM E N T T O S E LL . 31

fil men t of a condition A sal e on the other hand 1 8 more th an

f
.

contract I ts eif ec t i s to tr a ns er to t h e W
.
ye; teythwi th e
t e ro ert in t he eged e Under an ag ree
p p y _

s eller rema in s the own er until the agreement

to se l l become s a sal e un der a sale the b uyer becomes the own e r

,

forthwi th An ag ree ment to sell an d a sal e are s ometim es

.

r efe r red to as an executory cont ract of sal e an d an executed

contra ct of sal e re sp ectively .

A s to a b ar gain an d s al e as di s tin gui sh ed from a sale an d

delive ry s ee 32 an d ch apter 8 8 1
, , ,
.

§ 32 . Pr o pert y an d p ossessi on .
‘

The S ale of Good s Act ( On t s 2 ; U K s 62 ) provi de s . . . . .

“ ”
P rop e rty s h all me an the gen e r al p rop erty in g oods ,

“ ”
an d not merely a s peci al p rop erty D eli very s h al l .

mean v ol un t t rans fer of oss essi on from one er so n t o

another
“
S al e shall 1 n cl ud e a b arg ain an d sale as wel l
”
.

as a sal e an d delivery .

A gift of a ch attel i n t er vi o os if not m ade by deed i s not , ,

c omplete until delive r y the ch a nge of p o ss ess i on b eing an es ,

sen t i al p art of the ac t of giving though the delive r y may p re

c ede ins te ad o f
,

, accomp anyi ng or followi ng the word s of g i ft ,

.

Cochrane v Moore 1 8 9 0 2 5 Q E D 5 7 expl ain ed in I n

m
. . . .
, , ,

r e Stoneh a [1 9 1 9 ] 1 C h 1 4 9 , . .

A contract to pledge a s pecific ch at t el even though money

be adv anced on the f aith of it i s not in it s elf su f
,

ficient to p ass ,

an y s peci al p rop erty in the ch attel to t h e pl edgee D elivery i s .

,

in addition nec ess ary to complete the pledge but it i s enou gh

f
, ,

i th e delive r y be cons t r uctive or symbolic al ins t ea d of actu al , , .

D ublin City D i stille ry v D oherty [1 9 1 4 ] A C 8 2 3 at .

, . . ,

p 84 3
. .

On the other h and W BY W

the l aw of E ngl and whi ch di f fers in thi s re spect from the
,

c ivil l aw an d tho s e l aws founded up on it includin g the Scot ,

ti sh l aw a b arg ain an d sale a contr act for v alu able cons ider
, ,

ation by which it i s agreed th at the p roperty in a sp ecific

c h attel s h all p ass i s e f f
,

ectual to tr ans fer the p rope rty without

,

delivery .

Sc ath v Moore 1 8 8 5 1 1 App Cas 35 0 at pp 37 0

. , , . .
,
. ,

38 2 3 2 3 R C 2 62 at pp 2 77 2 8 9 ; as to b arg ain an d sal e

-
, . .
, .
,
 33 CHAP TER 1 1 1 . PA S S I N G OF THE PR O PE R T Y.

as di s tin gui s hed from sal e an d delivery p ri or to t h eJ u di

cat ur e Act , s ee c hap t er 8 ,
81 .
W
“
the p rop e rty in goods i s m eant t h e owner ship or gener al
“

By
“ ” “ ”
p rop er ty the p rope rty as di stin gui shed from a p r o
,
—

p erty th at i s merely a S p eci al p rop e r ty which one pers on may

, ,

h av e in another p erso n s good s The own er of goods may ’

tran sfer a s p eci al p roperty ( for ins tance to a pl edgee ) an d ,

ret ai n t he general p rop e rty The gene ral p rop e r ty may be .

tran s fe rr ed s ub j ect to a sp eci al p rop e rty ( as in a sale by a

pl ed gor s ubj ect to the pled gee s ri ght s ) The general p roperty ’
.

ordin ar ily includes the r ight to po ss ess ion but the ri ght to ,

p osse ssi on an d t he r o perty may b e separ etefl The p rop erty

p
an d the p o ss es sion ret ained by virtue o f
,

may be trans e
t h e unp aid s ell er s l i en .
’

'

See 2 5 Hal sbury L aws of E ngl an d p 1 2 0 n ote ( r ) , , .

,

B urdick v Sewell 1 8 84 1 0 Ap p Cas 7 4 at p p 9 2 3

.
, , . .
,
.
-
,

1 0 3 4 R C 7 5 8 at pp 7 7 5 6 7
,
. . Attenbo rough v Solo
,
.
-
,
.

mon [1 9 1 3] A O 7 6 at p 8 4 ; The P archim [1 9 1 8 ] A C

, . . ,
.
,
. .

1 5 7 at p 1 60
,
.
.

It may b e imp ort ant on v ario us grounds to cer tain p re as

c i sel y when t h e p rop erty p ass e s ( 1 ) A s ha s been p ointed out .

in ch apter 1 th e good s are us u al ly at t he ri ek et th e 9229 25:

( 2 ) The ri ght s Of
,

the p a rties a g ain st the good s depend upon

whether the p rop erty i s ves t ed in the b uyer or in the s eller .

S ee ch apter 7 ( 3) The n ature of th e per s on al action s of the

.

p artie s for bre a ch of c ontr act depend s t o s ome e xtent on

whether the prop erty h as p as sed See ch apter 8 ( 4 ) In c as e
of the in s ol vency Of
. .

one of th e p art ies the d i fi er en c e b etween ,

a p er s on al a ction a gain s t him an d the ri ght t o the goods in

sp ecie may b e of th e utmo st con s equence See R eid v M ac . .

’
bet h an d Gr ay [1 9 04 ] A C 2 2 3: ( 5 ) Until the p rop erty
, . .

p asses to th e buyer he can h ave only an equit ab l e titl e which

may b e p os tp oned t o the legal cl a im Of
,

s ome thi rd p arty ac

quired for v al ue and in good f aith Jo sep h v L yon s 1 8 85

‘

. . , ,

1 5 Q B D 2 8 0 ; C oyne v L ee 1 88 7 1 4 O A R 5 03 ; but in
. . . . , ,
. . .

Ont a ri o an agreement for the p l ed ge of fut u re good s i s now

withi n the B ill s of S al e an d Ch attel Mo r tg ag e Act : se e ch apter
4, § 44 .
 .

34 C HAP T ER II I . PA S S I N G OF TH E P RO PER TY.

press their intention I f the good s are sp ecific an d nothin g

.

rem ain s to b e don e to the goo d s by the s el l er in order to put

them into a del iv e rabl est ate or to as cert ai n the p ri ce the p re ,

s ump t i on i s th at the p arti es intend to efi ec t a p r es ent sal e

“
’ '

f
f
,

but in di er en t circum st ances the p re sumption may b e th at

the p artie s int end t o su sp end t h e p as s ing of the p rop erty In
t h e intention Of
.

an y event a mere p res umption Of the p arties

m us t ”gi ve way to t h e actu al intention if th at intenti on can ,

be g ath er ed from t he contract or c onduct of t h e p artie s .

Cf B enj ami n S ale 5 t h ed 1 9 0 6 pp 31 0 H

. . . .

The S al e o f
, , ,
'
G ood s Act ( On t s 2 0 ; U K S 1 8 ) p rovid es
. . . .

2 0 Unle ss a d i f f erent 1 n t en t 1 on a e ars the f

.

ol l ow mg

f
.
,

ar e r ul
ee to r ascert ain i n
g t he intenti on O the p a rtie s as t o

the time at whi ch the r op er ty in t h e oo d s is to p ass t o

thm
m ule 1 Wh ere th ere 1 s an un condition al contr act
—

for the s al e of sp ecific go od s in a deli verable st ate ,

the p rop erty in the good s p ass es to the buyer when

the contract i s m ade an d it i s imm ateri al wh et h
the time of pa yment or the tim e of d l
e yi e b ath
er y r

(b) R ul e 2 here i s a contr act for t h e s ale of

s p ecifi c go od s an d th e seller i s bound to do som e

thing to the good s for the purp o se of putting the m

into a deliverable st ate the p rop erty doe s not p as s
,

until such thin g b e done an d the buy er h as noti c e

m ,

thereof
( c ) R ule 3 Where there i s a contr act for t h e sal e of
.
—

s p ecific good s in a d eliver abl e s t ate but t h e s ell e r ,

i s bound to weigh m easu re te s t or do s o me other

, ,

ac t or thin g with refer ence to the good s fo r the -

purp ose Of a scert ai ning the price the p roperty does ,

n ot p ass un til s uch ac t or thing be done an d the ,

2 ; U K . . S. 62 ) l o
a s p ro

2 Good ssh al l be d ee med to be in a M

”
3339 W ithin the me anin g of thi s Act when they ar e in

su c h a s ta te th at t cont ract be
b ound to t ake d el i v e of them '

ty .
 R U LE S A S CER T A I N IN G I N T E N TI O N .
‘

F OR 35

E x ample s of the applic ation of rul e 1

T arling v B axter 1 8 2 7 6B
. C 360 2 3 R C 2 5 7 ( de
, ,
. . ,
. .

l ive ry an d p ayment p os tponed ) .

Cr aig v B ea rdmore 1 9 0 4 7 O L R 674 ( goods to be

.
, ,
. .

d el iv ered at r ail way s idi ng b ut des troyed in w oods befo re

delive ry : del ay in delivery p o ssibly due to buyer s f aul t ) ’
.

M c Gregor v Wh al en 1 9 1 4 31 O L R 5 4 3 2 0 D L R
. , ,
. . . ,
. . .

4 8 9 ( good s in deliver able s ta te : nothi ng further to be done

by s el l er ) .

L ea v T an gye 1 9 1 9 ( Al ta ) 4 9 D L R 5 2 ( buyer n ot
. , ,
. . .

t o u se s t ra w until p ayment ) .

The rul e doe s not apply if by the terms of the contrac t the
sale i s not to t ake pl a ce until t h e good s a r e r eceived an d p a id

for .

Rex v Chap p us , 1 9 2 0 , 4 8 O.L .R . 1 8 9 , 5 5 D .L .R 77 . .

E x ampl es O f
the a pplic ation O frule 2
R ugg v M i n ett 1 8 09 1 1 E as t 2 1 0 2 3 R C 2 9 5 ( c as ks
.
, , ,
. .

t o be fil l ed by s ell er ) .

A c r ama n v Mo r rice 1 8 4 9 8 CB 4 4 9 ( p ar t s Of
. t runks
, , .

of trees a gre ed to be s old but des troyed before seve rance ) , .

Ande rs on v Morice 1 8 7 6 1 App Gas 7 1 3 L R 1 0

. , , . .
,
. .

C P 60 9 2 3 R C 302 ( go od s to be lo ad ed on s hi p )
. . , . . .

Sc ath v M oo re 1 8 8 6 1 1 Ap p Gas 35 0 at p 37 0 2 3
. , , .
, . ,

R C 2 5 7 at pp 2 77 8
. . , . -
.

B o ehner v Smith 1 9 1 6 4 9 N S R 4 35 2 6 D L R 5 1 1
.
, , . . . , . . .

( logs to be sa fely bo om ed ) .

M c D i ll v H il s on 1 9 2 0 30 M an R 4 5 4 ,5 3 D L R 2 2 8
. , ,
. .
-
. . .

( furniture to b e p olis hed )

“
The word s an d the buyer h as notic e thereo f in rul e 2
are borrow ed from the Scotti sh l aw an d in the United St ate s

have been omit t ed from the corres ponding p rovi sion of the
Un i fo rm S al es Act .

E v en thou h so methj h w ain s to be done o the oods b

g g t g y '

the se v r ble s t a te the ro p ert

W1 11 ass at th e time of the contr act i f such i s the in t ention o
p t
t e part i es
Young v M atthews 1 8 66 L R 2
. , ,
. .
36 CH AP T E R I II . PA S S I N G OF TH E PR O PER T Y.

E x amp l es of t he application of r ul e 3 .

H ans on v Meyer 1 80 5 6E as t 61 4 ( goods to be weigh

.
, ,

L ogan v . L e Me su ri e r 1 8 4 7 , 6 M OO . P .C .C. 1 1 6 ( good s

,

to b e me as u re d ) .
In the followi n g c as es the p rinciple of rule three di d no
apply be c aus e there was nothing to be done by the s eller al ,

t hough the buyer h ad the right to m eas ure etc : ,

.

F url ey ( o r Turle y) v B ate s 1 8 63 2 H C 2 00

. , , . . .

Gilmour v S uppl e 1 8 5 8 1 1 M OO P C C 5 5 1
. , , . . . .

The word s an d the buyer h as notice thereof in rul e 3

ar e b orrowed from t h e S c otti s h l aw I n the Unit ed St at es the
.

whol e rul e i s omitted from t h e Uniform Sal e s Act

In an y c as e the rul e i s in applicable i f
.

i t app e ar s to h ave
'

been the intention Of th e p a rti es th at the p rop erty should p as s .

Wil s on v S h aver 1 9 0 1 3 O L R 1 1 0 ( s ub s equ ent mea

. , ,
. . .

s uring an d s tamp ing ) .

N Vhi t e v G reer 1 9 1 6 36 O L R 30 6 30 D L R 7 0
, ,
. . . ,
. . .

( go od s in sp ected me asured an d b r an ded )

, .

§ 35 . S uspe n si ve an d r eso l ut i ve c on d i t i on s .

C ases f allin g withi nr ule s 2 an d 3 ar e examples of contr act s

Of s al e subj e ct to a condition p r ecedent or to us e the more , ,

exp re ss ive t erm of th e ci v il l aw s ubj ect to a sus pens ive con

dition the p ass ing Of
,

—
the p rop erty being su spended until the
the cond i tion Other examples ar e aff
.

p erfo r m ance Of . orded by

sal e,
or rather delivery on tri al or on app rov al an d b y t he
, ,

b arg ain kn OwI I as sale or retu rn

“ ”
.

Th e S al e Of G ood s Act ( On t S 2 0 ; U K s 1 8 ) p rovides

. .

2 0 U nl e ss a di f f
. . .

. eren t intention appe ar s the follo wi ng

ar e rul es for as certai ning the intenti on Of
,

the p a rti es as to
the time at which the p roperty in the good s i s to p ass to
the b uyer :
( d ) R ule 4 Wh en good s are delivered to the buyer p p
.
—
,
”
n s al e or r etu r n or other s imil ar te r m s
“
r ov l or
a
pp e e ,

the p ro p ert y there i n pass e s to the b eyer i -

( i) w hen he si
g tt fi
i hi s a
pp rov al or a cce t ance t o
p
the sell er or does an y other ac t a O t 1 n the tran s
t
ac l o n ;
 § 35 . S US P E N S I V E A N D RE S O L UTI V E C O N D ITI O N S . 37

( ) if
11 he does not s i gnify hi s approv al or ccept ance a

to the s eller but ret ai n s the good s without giving

notice

t is a reas on able
que stion Of
1s a f act .

Ill us t ration s Of delive r y on app roval or on s ale o r r e

”
turn o r other S imil ar term s may be found in the following
c as e s
Mo ss v Sweet 1 8 5 1 1 6Q B 4 9 3
. , ,
. . .

E lphick v B arne s 1 88 0 5 C P D 32 1
.
, ,
. . . .

Kirkh am v Attenborough [1 8 9 7 ] 1 QB 2 0 1 d i s ,
. ,

t i n gui sh ed in Weiner v Gill [1 9 0 6] 2 K B 5 7 4 ; cf

. , . .

Weiner v H arris [1 9 1 0 ] 1 K B 2 85
. , . .

C an adi an Oil Comp anies v Ma rge s on 1 9 1 7 5 1 N S R . , , . .

331 35 D L R 2 9 8 ( Option to b uy drum s in which g aso

, . . .

l in e del iver ed ) .

The p ers on c alled the buyer in the s t atute i s r eally only

a b ail ee as he h as not bought or agreed t o buy but h as merely

Th e os ition Of
, ,

an option to buy the s eller i s th at he h a

p.
e
ma
[1 8 9 5 ] A C . . 4 7 1 ; Kirkh am v .
Attenb orough [1 8 97 ] 1 Q B 2 0 1 at p . 203
; 2 5 Hal sbur y,
L aw s O f
, . ,

E n gl and p 1 78 note .

The S al e Of
, ,

Good s Act doe s not menti on n or doe s it ex

c l ud e the altern ative th at the p ar tie s in stea d Of
,

,
int endi ng ,

th at the go od s sh al l be sold or delivered on a sfis p en s i v e con

‘
'

di t ion may intend th at there sh all be a p re s ent sal e with an

,

option on the buyer s p art to retu r n t h e goods wi tt a c ert ain

’

time or in ce rtain circum st ance s The eff ect Of thi s l atter .

tr ans action i s th at

Illu str ation s Ofsale up on r es olutive c ondition may be

found in the followi ng c ases :
”
H e ad v T atte rsall 1 8 7 1 L R 7 E xch 7 ( right to r e
turn i f
. . . .
, ,

condition not fulfil led ) .

 C H A P T ER I I I . PA S S I N G OF THE P RO PE R TY.

M ay v Con n 1 9 1 1 2 3 O L R 1 0 2 ( r ight to return in

.
, ,
. . .

c as e of b re ach of warr anty ) foll owing T aylor v Tillot s on

,
.
,

1 8 36, 1 6Wend . 4 94 .

l I n the United St ate s the word s sale or retu r n indic ate a

s al e on re s olutive condition an d the Unifor m Sale s Act ( S 1 9 )

,
.

s pecific ally provid es .

When goods ar e deliver ed to the buye r on sale or r e

turn o r on other term s indi ca ting an intention to m ak e
,

a p re s ent s ale but to give the buyer an option to return

,

the good s in ste ad of p aying the p rice the p roperty p ass e s ,

to the buy er on d elive r y but he may revest the p rop erty

,

in the s eller by retu r ning or tendering the goods with i n

the time fix ed in the contr act or if no time h as b een fixed , , ,

within a re as on able time .

§ 36. Un asc e rt ai n e d an d ft u ur e good s .

As contras ted with s pecific or as cert ained go od s ( S al e Of
G ood s Act : On t S S 2 1 9 5 1 ; U K ss 62 1 7
. . the s ubj ect
of the contract Of
, ,
. . .
, ,

s al e may be un as cert ain ed or merely d e

s cribed generic ally .

A S contr as t ed wi th exi s ting g oo d s o wne d by t h e s eller

the s ubj ec t Of
,

the contra c t may be f u ture good s t hat i s good s , ,

to be manuf actured or acqui red by the s eller after the m aking

of the contract ( On t s 7 ; U K ss 6 . 2 . . . .
,

W h ere as in the c as e of sp ecific goo d s exis ting at the tim e

of the contract an d own ed by th e s eller the p artie s may intend
to eff
,

ect either a p r es r al e or an agreement to s e l l at a

eyL e

The S al e of Goo d s Act ( On t S S 7 1 8 ; U K ss 5 1 6) p ro . .

, . . .
,

Vi des

7 Where b y a contr act of sale the s eller purp ort s

to efi ec t a p res ent s ale of future good s the contract 0 er
,
,

ates as an emen t ell t

1 8 Where t he re i s a contr act for t h e sale of un asc er
.

t ai n ed goods no p roperty in the goods i s tr ans fe r re d to

,

the buyer hhless an d until the geeee er e as cert ain ed

In the United St ates t e corres p o ndin g p rovi sions Of
.

the
Uniform S al e s Act ar e as foll ows
 536. U N A S CER T A I N E D A N D F UTU RE GO O D S . 39

5. Where the p a rti es p ur port to e f fect a p r es ent

sa l e of futur e good s the ag reement Op er ate s as a contr act
,

to s ell the good s .

1 7 Where there i s a contract to s ell unascerta in ed goo ds

no p rop e r ty in the good s i s trans ferred t o the buyer un less
an d until the good s ar e as cert ained but p roperty in an ,

undivided sh are of as ce rt ained good s may be trans fe r r ed

as p rovided in s ection 6 .

6 There may be a contract to se l l or a sal eof an

undivided sh are of good s I f the p arti es int e nd to e f f
,

ect a
p res ent sale the buyer by force Of
.

th e agreement b ecomes
an owner in common with the owner or own ers Of
, , ,

the r e
m aining sh are s .

( 2 ) In the c as e of fungible good s [tha t i s good s of

"
,

which a ny unit i s from i t s n ature or by me r c antil e usage

tre ated as the equiv alent of an y other unit : S 7 there
may be a sal e Of
.

a n undivided S h are of a sp ecific m as s ,

though the s eller purp ort s to s ell an d the buyer to buy a

definite number weight o r me asur e of the goo d s in the
,

m ass an d though the number weight or meas ure of t he

, ,

goo d s in th e m as s i s undet e rmined B y suc h a sale the .

'
buyer becomes o wn er in common of such a sh are of the
m ass as the number wei ght or meas ure bo ught b ea rs to
,

the number wei ght or me as ure of the m ass If the m as s

, .

contain s le ss th an the number weight or me as ure bought , ,

t he buy er b ec ome s the o wn e r of the whole m ass an d the

seller i s bound t o m ake good the deficiency from S imil a r

good s unl ess a contrary intent app ea rs .

Referring to s 6 the Commi ssioner s on Uniform St at e

.
,

L aws ( P rocee din gs 1 9 0 6 p 1 4 4 ) say

, ,
.

Thes e provi sion s ar e new an d 6 at l east p rob ably

, ,

does not exp re ss the E ngli s h l aw I t exp ress es the doct r ine .

of Kimberl ey v P atchin 1 8 5 9 1 9 N Y 330 wh ich is sup . .

ported by the weight Of

. , ,
,

r ecent Americ an authority though ,

there are adve rs e deci si ons It i s to be noti ce d

.

that it i s p rovided only th at title may p ass under the sug

ge st ed ci rc um st ance s The p res umption woul d in mos t
.

c as es be th at it did not p as s bec aus e not int ended to p as s

un til s ep arati on .
40 CH A P T E R I II . PA S S I N G OF
‘

TH E PR O PER T Y.

Se e al s o White v Wilks 1 8 1 3 5 T aunt 1 7 6 2 3 R C 2 5 2

Americ an note s at pp 2 5 5 f f
.
,
. . ,
, ,

; an d B enj amin S ale 5 t h ed . . , ,

.

1 9 0 6 p 338 where it i s said th at the Americ an c as es ar e in

hop el ess co nf
, ,

l ict .

The E ngli s h r ul e i s th at if the p arties h ave not a greed 0 11

f
.

s p ecific g oods as the s ubj ect of the contr a ct an d a or ti or i i t ,

the contract rel ates to good s whi ch ar e not yet in exi stence no ,

p rop erty in any p a rticul ar goods c an p ass an d the contract '

,

mus t be a mere agr eement t o sell n ot a pre s en t sale It c an ,

.

m
S ale 5 th ed 1 9 0 6 pp 334 f
B enj amin , f; 2 5 Halsbury ,
.
,
. . ,

L aws of E ngl and p 1 67 Whi te v Wilks s up r a ; B us k v , . .

,
.

D avi s 1 8 1 4 2 M ,
S 39 7 ; Pl et t s v C ampbell [1 8 9 5 ] 2
,
. . . ,

Q B 2 2 9.H e aley v H owlett [1 9 1 7 ] 1 K B 33 7 ; R OSS v . , . .

H urt e au 1 8 9 0 1 8 Can S C R 7 1 3 ; Kidd v D ochert y

, , . .
-
. . .

1 9 1 4 7 S L R 1 37 1 6 D L R 5 2 5 ; Z a i ser v J esske 1 9 1 8
.
. . . . . . . ,
, , ,

1 1 S as k L R 4 62 4 3 D L R 2 2 3 To the contr a ry i s the

. . ,
. . . .

Opinion expre ssed in In li s v R ich a rd son S on s 1 9 1 3 2 9

g .
, ,

O L R 2 2 9 1 4 D L R 1 37 th at there may be a 1222 55 1112 fi le

. . .
,
. . .

of an undivided p art of a l ar ger bul k B enj amin ( S ale .

, ,

5 t h ed 1 9 0 6 p 338 ) i s in t hi s c as e incorre ctly quote d as

. ,
.

sayin g th at t h e cas e s in E ngl and ar e in con fl ict .

Th e p arti es may agree th at S O s oon as the goods ar e as ce 1 ~

t ai n ed th e p rop erty in them sh all pass to the buyer or even

th at the p rop erty in good s to b e man f
,

a c t u r ed by th e s eller sh all

p ass in an unfini sh ed st ate at an y st age b efor e the completion

of the manuf acture .

S eat h v Moore 1 8 8 6 1 1 App Cas 35 0 at p p 370 38 0

.
, ,
. .
,
. , ,

38 1 2 3 R C 2 5 7 at pp 2 7 8 2 8 7 2 88 ; L aing v B arcl ay
,
. .
,
.
, ,
.
,

[1 9 0 8 ] A C 35 at p 4 3 . .
, . .

§ 37 . Ap propr i ati on o fg oo d s t o t he t
c on r ac t .

In other c as e s the f act th at the future good s h ave b een

ac q uired o f
manuf actured by the sell e r or th at other un asc er ,

t ai n ed good s h ave b ecome as certained as th e c as e may b e may , ,

do no mo re th an m ake it p o ss ible for the p rop ert y to p ass .

42 CH A P T E R I I I . PA S S I N G OF TH E P RO PE R T Y.

Mi r abi t a v Imperi al Otto man B ank 1 8 78 3 E x D

. , ,
. .

1 64 , atcf P ign ata ro v Gilroy [1 9 1 9 ] 1 K B 4 5 9

'
p . 1 72 .

( ass ent of
. .
,

b uyer implied from f ai lure to reply to notice )

M as on R i s ch v Ch ri s tner 1 9 1 8 4 4 O L E 1 4 6 4 6 D L
.
,
'
,
. . . .

R 7 1 0 ( no app rop ri ation by sell er wi t h cons ent of buyer )

'

. ,

S C 1 9 2 0 4 8 O L R 8 5 4 D L R 65 3 ; S ell s v Thom s on
. .
, ,
. . .
,
. . . . ,

1 9 1 4 , 1 9 B .C.R . 4 00 , 1 7 D .L .R . 737 .

m al sbur y , L aws of E n gl and p 1 69 , citing B l ack

,

burn Contract of
.
,

,
S ale l st cd p 1 2 8 3r d ed p 1 38 ; ,
.
, .
, ,
.

F r agan o v L ong 1 8 2 5 4 B . C 2 1 9 ( ins urin g an d d es

, ,
. .

p at c h of good s by s ell er up on buyer s in structions ) ’

The delivery of p a rt s of a m achine may b e a su f

.

fici ent ap
prop ri ati on to c au s e the p rop ert y to p ass notwith st anding ,

th at there ar e s uppl em ent al p rovi si ons in the contr act for the
'
e r ec tion of t h e complete m achi ne by the s eller on t h e buyer s
’

p remi s es .

P r itchett etc C o v Cur rie [1 9 1 6] 2 Ch 5 1 5

. . . .

Where by t h e t erm s of a contract f

, .
, ,

o r un as c e rt ai n e d good s ,
'
t he s ell er ag ree s to deliver the goo d s at a p artic ul ar pl ace an d ,

no intention appe ar s in the cont ra ct tha t the prop erty sh all

p as s p rev i ous ly to such delivery the p rop erty d oes not p ass ,

u nl e ss an d un til d elivery i s m ade accordingly .

C alcutt a an d B urm ah Ste am Navi gation C o v D e M at . .

t os 1 8 63 32 L J Q B 32 2 at pp 335 32 8
, , . . . ,
.
,
.

then the s ell er may ch ange hi s .

ee 2 5 Hal sbur y L aw s of E ngla nd p 1 7 4 W here s ome

, , . ,

famili a r ex amples ar e gi ven In the Uni ted Stat e s a s im il ar .

rul e i s st a ted in the Un i form S al e s Act but i s n o t l i mit ed as , ,

i t s hould be to contr act s for un as ce r tained g oo ds

, .

38 . Re serv at i on o f
th e ri gh t o f
di p s o sal .

The r ul es al re ady s tated as to the t i me at whi ch the p ro

p e rty p as se s fr om t h e s ell e r t o the b uyer ar e merely guid es to
 § 38 . RE S ER V A TI O N OF R I G HT O F D I S P O S A L . 43

the intention of the p arties in the ab s ence of an y cle ar exp res

u pp y y
“
sion of their intention an d tho s e q ,
e s a l on l u n l ess a

s 20 ; U K s . . . .

the good s ar e s pecific or

as ce rt ained or in the c ase of un as cert ained goo d s so so on as
, , ,

they b ecome as cert ained the p rop erty p as ses t o the buye r
,

whenever the p arties intend th at it sh all p ass It may of .

cours e be exp re ss ly p rovi ded by the contract th at the p roperty

s h all not p ass until ce rt a in c on d i t i on s ar e ful fil led Mor eover .
,

wh en t he sell er a pp rop ri ates good s to the contract he may ,

b y the te rm s of the appropri ation p revent the prop erty from

p ass i ng .

The S ale of G oods Act ( On t s 2 1 ; U K s 1 9 ) provide s

. . . .

21 Where ther e i s a c ont ract for the sale of

.

s p ec i fic go od s or where good s ar e sub sequently app rop r i .

ated to the contr act the s ell r mg b the

e ,
'
y ,

c ontr ro r tion re s e rve the right of di s p o sal

W T ul fi ll ed

cas e notwiths t anding the d elive r y of t e g ood s to the bu y

,

er or to a c arri er or other b ail ee for t he purp o s e of trans

,
I n s uch

mi ss ion to the buyer th e p rop e rty in t he goo ds do es n ot

,

p ass to the buyer until the conditions imp o sed by the s eller
are ful fill ed .

( 2 ) Where good s ar e s hipp ed an d by th e b ill of l adin

f
,

the goods are dc li v rable to the der o t he s ell e r or hi s

,
M
f
a gent t he s eller i s p r i ma ac i e deemed to res e rve the ri ght

the s eller of good s dr aw s on the buyer for

t he p rice ,
an d

ment of the bi l l of exch ange the b u yer i s boun d t g rgm

,
m
the b ill of l if he doe s not honour the bill of exch ange

f
g .

an if he un l awully.zetai n s the bill of l adi ng the pr p

p e rty in t 9 M s ages p ot pas s 0 m .

“ ”
The te r m r ight of dis po sal i s a tr ans l ation of j us d i s

M
whi ch i s foun d in the c as es with reference on ly to
p men t under bill s of l adi ng
'

The p rovi si on c onta ined in

.

s ub s 1 i s not c onfi n ed t o c as es of shi pm ent al though the

p ar
-

t i c ul ar in s t an c es of
.
,

res erv ation of the ri ght of dis p osal giv en

 44 CH A P T E R I I I . PA S S I N G OF ‘
TH E PR O PER T Y.

in s ub ss .
-
2 confi ned Under sub s 3 it i s not
an d 3 ar e so . -
.

.i
. m p e r at i v e that the bill of l a ding sho ul d p as s through the
y

h and s of the sell er s agent ( C ahn v J o cket t s B ri s tol Ch annel

’ ’ ’

Ste am P acket Co [1 8 9 9 ] 1 Q B .
,
though be fore the . .

s t atut e this Was gener al ly nece ss ary

Cf 2 5 Hal sbury L aws of E ngl and pp 1 8 1 f f; as to

.

. . .
, ,

the res ervation of the right of di s po sal see al s o B e n j ami n , ,

S al e 5 t h ed 1 9 0 6 p p 37 5 E
,
.
, ,
. .

I n the United S t ate s the words right of p o ss ess ion or p ro

“

”
pe rty ar e s ubstituted in the Uni o r m S al es Act ( s 2 0 ) o r
” “ ”
f . f
ri ght of di sp o s al in sub s 1 the word p rop erty i s sub -
.
,

stituted in sub s 2 an d the wording of the v a riou s sub sec

. .
,
-

ti on s i s somewh at altered There i s a p rovi sion added th at .

Where the good s ar e shi pped an d by the bill of l ading ,

the good s are deliver able to the order of the buyer or hi s

ag ent b ut p o ss es si on of t h e bill of l ading i s ret ai ned by the
,

s e ll er or h i s agent t h e seller thereby res e r ve s a r igh t t o

,

the p o ss e ss ion of the good s as again s t the buyer .

I fup
,
o n
order for un as cert aine d go od s t o b e s hipp e d
an

the s ell e r delivers to the de s i gn ated common c arrier

goods whi ch ans wer the ord er an d if in the cas e of a b ill of , ,

l adin g b ein g t ak en it i s t ak en in th e n ame of the b uyer the

, ,

p rop erty p ass es forthwi th to the b uyer If however t h e b ill

f
.
, ,

of l adin g i s t ak en in the name of t h e s ell er p r i ma ac i e he ,

ret ains th e di s p os ing p ower over an d th e p rope rty in the

,

good s I f h g endor s es the bi ll of l adi n g Q d for wards i t to

.

the buyer forthwith , the tran s acti on i s egui v al epzto the t ak ing
of the bill of l adin g in th e n ame of the bu yer and t he p rop ert y , ,

w sses at on c
g but if the s e l l e r endors e s the bill of l ading in
,

bl ank or to hi s a gent an d fo r wa rds it to hi s ag ent for del i very

t o the b uyer u p on p ayment for the good s accept anc e of a
, ,

draft o r p erfo rm ance of some other con d ition then the goo d s
f
,

rem ain in the c ontrol an d ar e the pr opert y o the s eller at

le as t un til the condition i s ful fil led or the b uyer of f
,

ers to ful fi l
it an d dem and s t he b i l l of l ading .

V ipond v Sis c o 1 9 1 3 2 9 O L E 2 00 1 4 D L, R 1 2 9
.
, , . . .
, . . ,

an d c as e s c ited ; G r ah am v L aird 1 9 0 9 2 0 O L R 1 1 ; . , , . . .

T urner v L iverp oo l D oc ks 1 85 1 6E xch 5 4 3 4 R C 7 2 5

.
, , .
,
. .

Sh eph erd v H arri son 1 8 7 1 L R 5 H L 1 1 6 L R 4 QB

.
, ,
. . . . ,
. . .
 § 3s. RE SE RV A TI ON o r R I GHT o r D I S P O S A L . 45

1 9 6, 2 3 R C. 34 9 ; Ogg v . S huter , 1 8 7 5 , 1 C.P .D . 4 7 , 4

.

R .C . 7 4 6; Mi r abi t a v . Imperi al Ottom an B ank , 1 8 7 8 , 3

E x. D . 1 64 , at p . 1 72 ; C orby v Willi am s
. ,
1 8 8 1 , 7 Can .
S ,C R . 4 70 .
f
.

Although p ri ma ac i e the t aking of the bill of l ading in

t he n ame of the s eller p rev ent s the p roperty fr om p ass ing it ,

may appe ar from the contr act an d the conduct of the p a rtie s
th at it i s the intention of the p arti es th at t he p rope rty sh al l
neve rthel ess p ass .

The P archim [1 9 1 8 ] A O 1 5 7 ; cf St and ard Trus t C o

,
. . . .

v K arst 1 9 1 4 7 S as k L R 2 9 0 . 2 0 D L R 1 0
. , , . . . . . .

The p rovi sion s of the S al e of Goods Act now in qu est ion

( On t s 2 1 ; U K s 1 9 ) rel ate o nl y to the p ass in g of th e pro
. . . . .

perty as b etween the s el ler an d the buyer If un der sub s 3 . -

. .

the buyer wrongful ly retains the bill of l ading it may b e t ha t ,

he c an give a good title to a third p arty who t ak e s the b ill of

l ading in good f aith an d wi thout notice C ahn v P ocket t s . .
'

B ristol Ch ann el Ste am P acket Co [1 8 9 9 ] 1 QB 64 3 In the .

, . .

Uni te d St ates the same p rinciple is expressed in the foll owing

wo r ds which ar e added in the Unifo rm S al es Act ( 8 2 0 ) to .

the sub secti on corres p ondin g with sub s 3

- -
.

I f however the bill of l adi n g p rovide s th at the goods

, ,

ar e de l iver abl e to t h e buyer o r to the order of the buyer ,

or i s endo rs ed in bl ank or to the buyer b y the con si gnee

,

n amed the r ein one who purch as es in good f aith for v al ue

, , ,

the bill of l ading or good s from the buyer wi ll obtain th e

property in the goods although the bill of exch an ge ha s
,

not b een honored p rovided th at such purch as er has r e

,

c ei v ed delivery of the bill of l adin g endors ed by the con

s i gnee n amed the rein or of th e goods wi thout notice of

, ,

the fac ts m aking the tran sfer wrongful .

T hi s qu est i on b elongs to the s ubj ect of the next fol lowi n g

ch apter . S ee § 4 4 .
 C H AP T E R I V .

WHO CAN GI VE A GOOD TI TL E .

41. S al e by p e rs o n without titl e .

4 2 S al e by p er s on with a void able title

. .

§ 4 3 Tr an sfer of docum ent of title

. .

4 4 Os ten s ibl e owner ship or a gency

. .

4 5 Se l l er or buy e r in p oss e ss ion

. .

§ 4 6 The F actor s Act s

. .

§ 4 7 Ne goti ab le docum ent s of titl e in t he United

.

4 1 . S al e by per son wi t h out t i t le .

The general r ul e i s t h at a p ers on who h as no title to goo as
c annot give a title to anothe r p ers on n ame d at quad n on —

ha bet .
In p r actice h o wever th e general rul e mus t b e subj ect t o
, ,

imp ort ant exception s firstly bec ause the s eller though he
, , ,

may n ot be the owner may h av e th e leg al right to s ell on

,

b eh alf of the owner an d s e condly b e c au s e the true owner

, ,

may b e estopp ed from denying t he ri ght of the s ell er to s ell .

The exception s above menti on ed may be further sub di -

vi d ed as foll o ws

( 1 ) S al e b y a p ers on h aving l egal ri ght t o s el l

( a ) S ale by an ag ent within hi s a uthority .

( b ) S ale by a p erso n h aving a p ower of sa le .

( c ) S ale by a p e rs on un der an order of a comp etent cour t .

( 2 ) S ale the v alidity of which the owner i s e s toppe d from

di sputing
( d ) Sale b y an o s tens ible owner .

( e ) S ale b y an os ten sible a gent for s al e .

E xception s ( d ) an d ( e ) ar e further dis cu ss ed below Ex .

c ep t i on ( a ) i s not a re al exception b ec aus e a sale m a d e by

an agent wit hi n hi s autho ri ty i s the s ale o f

'

the p rincip al not

th at of the a gent E xcepti on ( b ) i s il lu s tr ated by the c as e of
.

a pl edgee h aving an implied or exp ress p owe r of s ale S ee .

D on al d v Su ckl in g 1 8 66 L R 1 QB 5 85 2 1 R C 30 1
. , ,
. . . ,
. . .

The S ale of Goods Act ( On t s 2 3 ; U K s 2 1 ) s tate s

. . . . .

t he gener al r ule an d s ome of the exception s as follows

 § 41. SA LE BY PER S O N W IT HO UT TI T LE 47

2 3. Subj ect to the p rovi sion s of thi s Act where good s ,

a r e sold by a p er s on who i s not the own er thereof an d who ,

doe s not sell them un der the authority or wi th the con s en t

of the o wner the buyer acquires no better title t o the
,

g ood s th an the s ell er had unl ess t he owner of the good s i s,

b y h i s conduct p r ecluded from denyin g the s eller s author

’

ity to sell P rovided th at nothi ng in thi s Act s h all afi ec t

.

( )
a The p ro vi s ions of Th e F ac t o rs A c t or an y en act

ment en ablin g the app a ren t own er of good s to d i s

p ose of them as if he were the true owner there of ;
( b ) the v alidity of an y c ontr act of sale under an y
s p eci al c omm on l aw or s t atutory p ower of s ale or

under t he order of a court of comp etent j ur i s d i c

tion .

As to sal e by the app arent own er see 4 4 an d as to the , ,

F actors Act see ,

46 .

In the Unit ed Kingdom the S ale of Good s Act ( 8 2 2 ) al sU .

c ont ai ns th e fo ll o wi ng p rovi s ion :

22. Where good s ar e s old in m ar k et overt ac ,

cording to the u sa ge of the m ark et the buyer acqui res a ,

good title to the good s provided he buy s them in goo d ,

f aith an d wi thout notice of an y defec t or w ant of title on

the p ar t of the s ell er
( 2 ) No thing in thi s s ection sha ll af f
.
'

ect the l aw r el at i n g
to the sale of ho rs es .

( 3) The p rovi sion s of thi s section do not apply to

Scotl and .

In the Ont a rio s t atute the fore going s ection i s repl aced by
the followi ng ( s 2 4 ) i .

2 4 . The l aw rel at i n g to m arket overt s h all not apply

to an y sale of good s whi ch t ake s pl ac e i n Ontar i o .

A s to market overt in Ont ari o pri or t o the s t atute s e e ,

F orri s t al v M c D o n al d
. 1 8 8 3 9 Can S C R , 12 at p
, 16 . . . .
,
.

“
( Stron g J : for s ale i n m arket overt i s of c our s e out of
.
, , ,

t h e que s ti on but cf B owm an v . 3 V On t . .

, .

D i g 1 9 00 v ol 3 c ol 62 0 3 ; M c N abb v H owl and 1 8 62 1 1

.
,
.
,
. .
, ,

4 34 a t p 4 36; Th omp s on v Nelle s 1 8 5 5 4

,
. .
, ,

39 9 ; P e ople s B an k of H alifa x v E s tey 1 9 0 4 84 Can S C R . , , . . . .

4 2 9 at p 4 4 8
,
. .
48 CH A P T ER I V . WHO CA N GI VE A TI T LE .

As le in market overt in the United Kingd o m s ee

to sa

2 0 Hal s bur y L aw s of E n gl and pp 5 3 f f2 5 Hal sbury p p

,

1 9 5 6; Willi s S ale of Go od s 1 4 6f
f; S c attergo od v Sylve s
, , . ., .
,

-
, , . .

ter 1 85 0 1 5 QB 5 06 1 6 R C 1 ; H orw o od v S mi th 1 7 8 8 2
, ,
.
,
. . .
, ,

T.E . 7 5 0 , 2 3 R .C. 2 4 3.

S . 2 6 of
the ori gin al s t atu te h as been omitte d from the
Ont ari o s t atute the s ubj ec t matt er b eing covered by the
,
'

foll owin g provi s i o n s of the E xe cuti on Act R S O 1 9 1 4 c ,

. . .
,
.

80 , s. 10
1 0. Subj e ct t o the p rovi si on s of Th e L an d .

Ti t l es A c t a writ of execution sh al l bind the good s an d

,

l and s a g ain s t which it i s i ss ue d from the time of the

delivery there o f to the S heri f ffor executi on but subj e ct
f
,

t o the pro v i s i on s of Th e B i lls o S al e an d Chatt el M or t

gag e A c t no wr it of ex e cution ag ai n st good s S h al l pre
j udi ce the title t o suc h g ood s ac qui red by an y per s on
in good f aith an d for v alu able c on s ider ati on un le s s s uch
per s on h ad at the time when he a cquire d hi s title no
, ,

ti c e th at s uch writ or an y other writ by virtue of w hi ch

the go od s of t h e exe cuti on debtor mi ght b e s ei s ed or
att ached h ad been delivered to t h e s heri f fan d rem ai n s
i n hi s h and s unexe cute d .

( 2 ) The s heri f fsh all up on the re ceipt of the writ

an d W ith out f
,

ee endor s e there on the d ay of the ye ar

, ,

t h e mo n th t h e h o ur an d the minute when t h e s ame was

,

re ceive d .

( 3) S ub s e c tio n 1 s h all n o t apply t o an exe cuti o n

a g ain s t go od s i s s ue d out of a divi s i on c ourt which s h all ,

bind onl y fr o m the time of th e s eizur e .

42 . S al e by p erson wi t h a voi d abl e ti tl e .

The S ale of Go od s Act ( On t s 2 5 ; U K s 2 3) pro v ide s . .

2 5 . Wh en t he sell er of
. . .

g o od s h as a v o id able t itl e
theret o but his title h as n o t b e e n avoided at t h e time
of t he sal e th e buy er ac qui res a goo d ti tl e t o th e goods
, ,

p ro v ide d he buy s them i n go od f aith an d with out n oti c e

of t h e s ell er s d e fec ti ve ti tl e.
’

Thi s sec t i on d oes n ot f or m a r eal e x c ep ti on t o t h e rul e

t h at p er s on c an n ot gi v e a b e t t e r t i tle th an he h as hi ms el f .
50 C H A P T ER I V . W HO CA N GI VE A TI T LE .

er of the go od s or h i s per s on al repre s ent ati ve n o t wi t h

, ,

s t andin g an y intermedi ate de alin g with them whether ,

by s ale in m arket overt or otherwi se , .

( 2 ) N otwith s t anding an y en a ctment t o the c ontr ary ,

where good s h ave been obt aine d by fr aud or oth er

f
wrong ul m ean s not amounting to l a rceny the p ro
p erty in s uch go od s s h all n ot ve s t in the per s on who
,

w as the owner of the go od s or h i s per s on al r ep r es en

t at i v e by re as on only of the c onvicti on o f the o ff
,

, ender .

( 3) Th e provi si on s of thi s s e c ti on do not apply t o

Sc otl and .

A s to the hi s t ory an d me anin g of thi s prov i si on s ee

B enj amin S ale 5 t h ed 1 9 0 6 pp 1 9 if
,

, . . .
, ,

A thief c ann o t by a s ale of go od s c onfer a go od title

up on a third p arty as a g ain s t the owner except in the c as e ,

of s ale in market overt or in the c as e of a s ale in a forei gn

c ountry by the l aw of which a s al e by a thi ef i s v ali d The .

fore goin g provi s i on h as been omitte d from the On t ari o

s t atute as bein g unnece s s ary in view of the f act th at the

doctrine of m arket overt doe s not apply t o an y s ale of go od s

which t a ke s pl ace in Ont ari o ( On t s 2 4 qu ote d in . .
,

I t s retenti on w ould only h ave s erve d to throw dou b t up on

the gener al rule th at a thief c annot c onfer a good title .

Sub S 2 repe at s in p art the principle s t ate d in another se c

-
.

ti on ( On t s .2 5 ; U K s
. . th at a b uyer in g o o d f aith an d
. . .

with out n otice from a p er s on with a merely v oi d able title

may obt ain a go od title .

4 3. Tran sf er o fd
oc u men t o f
t itl e.

In Ont ari o
the S ale of Go od s Act ( s 2 ) provide s .

”
D ocument of title s h all include an y bill of l adin g

an d w a reh ou s e re ceipt as de fi n ed by The M erc an ti l e

,

L aw A men d men t A c t an y w a rr an t or order ,

for the
deli very of go od s an d an y other document u s e d in the
,

ordin ary c our s e of bu s ine ss as pro of of the pos s e ss io n

or c ontrol of go od s or authorizing or purp ortin g t o
,

a uthorize either by endor s ement or delivery the p o s

, ,

s ess o r of the docu ment t o tr an s fer or re ceive go od s

thereby repre s ented .
 § 4 3. T R ANS FER OF DOC UM E NT OF TI T LE . 51

The fore going i s copie d from the F actor s Act R S O ,

. . .

1 9 1 4 c 1 37 s 2
, . ,
See § 4 6
. . .

The Merc antil e L aw Am endment Act R S O 1 9 1 4 .c 1 33 ,

. . .
,
.
,

s 2 pro v ide s :
.
,

2 In thi s Act
. ,
“
( a) B ill of l a ding s h all include all re ceipt s for
go od s a cc o mp anied by an un dert aki ng t o tr an s fer
the s ame fro m the pl ace where they were r e .

c e i v e d to s ome other p l a ce by an y mode of c a r

r i ag e wh atever whether by l and or w ater or

,

p artly by l and an d p artly by w at er ;

( b ) Go od s s h a ll include w are s an d merch andi s e ; .
“ ”
( 0 ) W areh o us e re ceipt s h all me an an y receipt
given by an y per s on f o r go od s in h i s a ctu al v i s ,

ible an d c ontinued p o s s e ss ion as b ailee there o f in

go od f aith an d not as of hi s own property an d ,

s h all include

( i ) a re ceipt given by an y per s on wh o i s the

own er or keep er of a h arb our c ove p ond , , ,

wh arf y ard w arehou s e s he d s to re h o us e or

, , , ,

other pl ac e for the s torage of good s delivered

to hi m as b ailee a nd actu ally in the pl ac e or in
,

one or more of the pl ace s owned or kept by

him whet her s uch per s on i s en g aged i n other
bu s ine s s or n ot ;
( ii ) a receipt given by an y per s on in ch ar ge of
'

l ogs or ti mbe r i n t rans i t f rom timbe r li mits

or other l and to the pl a ce of de s tin at i on of -

s uch log s or timber ; an d

( iii ) a S pe cifi c ation of timber .

Inthe Uni te d Ki n gdom t he S ale o f Goods Act ( S 62 ) .

p ro vi de s th at document of title t o goo d s h as the s ame mie an

i n g as it h as i n the F a ctor s Act s an d the F a ctor s Act 1 8 8 9
, , ,

s. 1 p r ovide s :
,

1. The expre ss i on go o d s s h al l include w are s

an d me r ch an di se ( 4 ) The exp ress ion
. docum ent of
ti tle s h al l include an y bill of l ad in g dock w arr an t
”
, ,

w ar ehous e k eep er s certific a te an y w arr ant or order

-
’
,

for the delivery of good s an d an y other document us ed

.
52 C H A P TE R I V . W HO CA N GI VE A TI T LE .

in the ordin ary c our s e of bu s ine ss as proof of the p os

s e s s i on or c ontrol of go od s or aut h o ri z mg or purp ort
,

i n g t o auth orize eithe r b y endor s ement or by delivery

the p o s s e s s or of
, ,

the document to tr an s fer or receive

.

go od s thereby rep re s ented .

The S ale of Good s Act ( On t s 2 9 ; U K s 2 9 ) provide s

. . . . .

29. Where the good s at the time o f s ale ar e in

the p os s esi on of a third per s on there i s n o delivery by

,

the seller t o the buyer unl e ss an d until s uch third per

s on a c kn owledge s t o the buyer th at he h old s the go od s
on h i s beh alf ; provide d th at nothi n g in thi s s ecti on
s h all afi e c t the oper a ti o n of the i s s ue or tr an s fer of an y

document of title t o goo d s .

A s t o delivery see ch apter 6 § 62 The sub s e cti on i s
‘
-
.
, ,

quote d here on a cc oun t of the provi so .

The S ale of G oo ds Act ( On t s 4 6; U K s 4 7 ) p rov ide s

. . . . .

.4 6 Subj ect to the p rovi s ion s of t h i s Act t h e unp aid ,

s eller s right of lien or retention or stopp ag e in tr an s itu i s

’

not af fected by an y s ale or other di spo sition of t h e good s

which the buyer may h ave m ade unl ess t h e s eller has as
,

s ented thereto P rovid ed th at where a docum ent of titl e to

. ,

goods h as been l awful ly transferr ed to an y p e rs on as buyer

or owner of th e good s an d th at p ers on tr an sfers th e docu
,

ment to a p e rs on who t ake s the document in good f aith an d

for v alu able con sideration then if such l as t mentioned
, ,
-

tran s fer was by way of sale the unp aid seller s rights of ’

lien or retention or stopp a ge in trans itu i s defe ated an d if ,

s uch l as t mentioned tr ans f e r was by way of pl edge or

-

other di spo sition for v alue the unp aid s elle r s right of
,
’

lien or retention or s topp a ge in tr an s itu c an o nl y be exer

c i sed s ubj ect to the right s of t he tran s fer ee :

This s ection i s .d i sc ussed in ch ap ter 7 § 7 5 in conn ection , ,

wit h the seller s li en an d ri ght of s topp a ge in tran situ It i s

’

f ect of the tran sf

.

quoted here as an ex ample of the ef er of a

document of title .

It i s t o be ob se r ved th at in the foregoing s tatutory d efi n

i t i o n s bill s of l ading ar e grouped with warehou s e receipt s an d
other s imil a r rec eipt s u n der the gener al n ame of document s“

”
of title an d th at in the other p rovi si on s of the S ale of Good s
,
 § 4 3. T R AN S FER OF D OC UM E N T OF TI T LE . 53

Act j u st quo t ed as wel l as in the F actor s Act ( to be referred

,

to l ater ) al l thes e documents of titl e ar e put on the same

,

footing for the purp o s es mentioned in the st atut es Simil a rly .

und er the B ank Act ( s s 2 8 6 an d in O nta rio under

.
, ,

the Merc antile L aw Amendment Act bills of l adin g an d ware ,

hous e receipt s ar e put on the sa me footing as regard s their

trans fer to a lender by way of co l l ater al s ecu ri ty .

At common l aw howev er the tran sfer of a w arehou s e r e

c ei p t un l ike th at of a bill of l adin g did not h ave the e f
, ,

, fect ,

of tran sferrin g the p rop erty in the goods to the tran s feree ,

at l eas t until the receipt wa s p res en t ed to the b ailee an d acted

upon .

B ank of B riti sh North Americ a v Cl arks on 1 8 69 1 9 .

, ,

1 8 2 at p 1 88 ; Gl as s v Whitney 1 8 63 2 2 U C R
,
. .
, , . . .

2 9 0 As to bill s of l ading see B arb er v M eyerst ei n 1 8 7 0

. .
, ,

L R 4 H L 31 7 4 R C 7 9 7 ; Glyn v E as t an d Wes t Indi a

. . . .
,
. . .

D oc k Co 1 8 8 2 7 App Gas 5 9 1 an d the c as e s cited in

., ,
. .
,

ch apter 7 7 5 , .

I n the United Kin gdom the B i l l s of L ading Act 1 8 5 5 , ,

p rovid es
Where as by the cu stom of merch ant s a bill of l adi ng
of good s be i ng tran s fer able by endors ement the prop ert y ,

in the goods may thereby p as s to the endors ee but never ,

t h el ess all rights in re s pect of the contr act cont ained in

the bill of l ading continue in the ori gin al shipper or own
er an d it i s exp ed ient t hat such ri ght s should p ass wi th
,

the p roperty ; an d where as it frequently h appen s th at the

good s in res p ect of whi ch bill s of l ad ing purp ort to be
si gn ed h ave not been l aden on bo ard an d it i s prop er th at ,

such b i ll s of l ading in the h and s of a bo n a fid e holder for

v alue shoul d not be que stioned by the m as te r or other

,

pers on S i gning the same on the ground of the good s not

h avin g been l aden as aforesaid : B e it therefore en acted
as follow s

1 . E very c on s i gnee of good s n amed in a bi l l of l ad in g

an d every endor see of a bill of l ading to whom the pro

p e rty in the goo d s therein mentioned shall p ass up on or ,

by r e as on of s uch con si gnment or end ors ement sh all h av e ,

trans ferr ed to an d v est ed in hi m all ri ghts of su it an d be

.
,
54 C H A P T ER I V . W HO CA N GI VE A TI T LE .

subj ect to t he same li ab ilitie s in res pect of s uch good s as

if the contract contain ed in the bill of l ading h ad bee n
m ade with hi m s elf .

2 N othin g he rein c ont aine d s h all prej udi c e or af

. fect
an y ri ght of s topp a ge i n t r an si t u or an y ri ght to cl aim ,

freight ag ain s t the origin al s hipp er or own er or an y l i a ,

bil i t y of the cons i gnee or endors ee by re as on or in c on se ,

q uen c e of h i s being such con s ign ee or endors ee or of hi s ,

receipt of t he g oods b y re as on or in c on s equence of s uch

con signment or endors ement .

3 E very bill of l ading in the h and s of a c on s i gnee or

.

endors ee for v alu ab le con sid e ration rep re senting go od s to

h ave b een shipp ed on bo ard a v es s el sh all b e concl us ive ,

evidence of such shipment as aga in st t h e m aster or other

p ers on si gning the sa me notwith s tanding th at such good s
or s ome p art thereof may not h ave been shi pped un l ess ,

s uch holder of the bill of l ad ing sh all h ave ha d a ctu al n o

tice at the time of receiving the same th at th e goo d s h ad ‘

not be en in f act l aden on bo ard ; p ro v ided th at the m as ter ,

c r other p er s on s o si gning may exoner ate hi m self in r es

‘

p eet of such mi s repre sent ation b y s howi ng th at it was

c au sed without an y defaul t on hi s p art an d wholly b y the ,

fr aud of t h e s hipp er or of th e hol der or som e p ers on un

, ,

der whom t h e holder cl aims .

In O ntari o the foregoing s tatut e i s i n ef fect re en acted -

( w i thout t h e p r eam b l
‘

e ) in the Merc a ntile

,
L a w Amendment
Act R S O 1 9 1 4 c 1 33 S 7 Ap art from merely verb al dif
. .

f
. . .
, , ,

e r en c es s 3 of the o rig i n al s t atute i s altered by the in se rtion

of
.
,
“
the word s trai n or convey ance of an y ki nd afte r the
w o rd vess el an d by the in s ertion of the word s or u n le ss
“
,
”
t he b ill of l ading has a s tipul ation to the contr a ry imme
d i at el y b efor e t h e p r ovi so S ee al s o the B ill s of L adin g Act R
. ,
.

1 9 0 6 c 1 1 8 whi ch i s sub st anti ally the same as the Ont ario

,
.
,

st at ute except th at in the s ection corres p onding to s 2 of t h e

,
.

ori gi n al st atut e there i s a cl au s e safegu ar ding an y ri ght of

”
an un p aid vendor un de r th e Civ il C ode of L ower C an ad a

As to th e B ill s of L ading Act see t he foll owi ng c as es

CB 665 2 4 R C 2 5 8 f
,

G ran t v No r way . ol .
,
. . ,
,

l owed i n E rb v G re at We s tern Ry Co 1 8 8 1 5 Can S C

. . ., ,
. . .
 § 4 3. T R ANS FER OF D OCU M E N T OF TI T LE . 55

R. 1 79 ( fr audul ent receipt for good s n ot received ) an d in ,

Cox v B ruce 1 8 8 6 1 8 Q E D 1 4 7 2 4 R C 2 68 ( g ood s i n

. , ,
. . .
,
. .

correctly d es cri bed ) .

Sewell v B urdick 1 8 8 4 1 0 App Gas 74 4 R C 7 5 8

f
. . . .
, , ,

( pledgee not li able o r freight )

The F reedom 1 8 7 1 L R 3 R C 39 4 followed in
, , . . .
,

F ri endly v C an adi an Tr ans it Co

. 1 886 1 0 O R 756 .
, , . .

( right to s ue up on contr act follow s p rop erty in g ood s ) .

44 Ost en sib l e own er shi p or agen cy.

On e of the exception s mentioned in § 4 1 to the gene ral

, ,

rul e that a p ers on who h as no title to goods cannot confer a.

titl e up on a third p arty i s the c as e in whi ch the owner i s

,

e sto pped from denying t h e v alidi ty of the sale E stopp el may .

ar i se where the own er h as so a cted as to clothe another per s on

wi th app arent or os ten sible owners hip or it may ari s e where ,

the own er h as so acted as to clothe a nother pe rs on with ap

p arent o r o s ten s ible agency for sale I f the ostens ible owner .

or o s ten sible agent for sale as the c as e may be purp ort s to

, ,

s ell to a buyer who takes for v al ue in good f a ith an d witho ut

notice the origin al owner ought on p rinciple to b e es to pped

,

from di sputing the v al idity of the sal e .

At common l aw a p ers on in po ss e ss i on of good s coul d not

,

confer on another either by sale or by pledge an y better title

, ,

to the good s th an he hims elf h ad To t hi s general rule there .

was an exception of sale s in m a rket ove rt an d an app arent ex ,

c ep t i o n where the pers on in p o sse ss ion had a title defe as ibl e on

a ccoun t of fr aud B ut the gener al rule was th at to m ake

. ,

either a sale or a pledge v alid again st the owner of t he good s

s old or pled ged it mu s t be s hown th at the s eller or pledger h ad
,

autho r ity from the own er to s ell or pledge es the c as e might be , .

If the own er of t he good s h ad so act ed as to clothe the sell er o r

pledger with app arent authority to s el l or pledge he was ,

a t common l aw p roc l ud e d as a g ain s t thos e who wer e induced

,

bon a fid e to ac t on the f aith of th at app arent authority from ,

denying th at he h ad given such authority an d the re s ult as ,

to them was the same as if he had really given it B ut there .

was no s uch p recl us ion as agains t th os e who had noti c e th at

the re al authority was li mit ed And the po ss ess ion of .
56 C H A P TE R I V . -
W HO CA N GI VE A TI T LE .

b ill s of l ading or other documents of title did not common at

l aw onfer on the holder of them an y

c gre ater p ower th an the
p o ss ess ion of the go od s themselve s .

Cole v N o rth We stern B ank 1 8 75

.
, ,
L .R . 1 0 C.P . 35 4 ,
at pp 36 2 3 B l ac kb urn J
.
-
, .

A the owner of goods tel l s B th at he h as s ol d them to C

, ,
.

I f B then buy s the goods from C in g ood f aith an d without

notice of the fact th at C has not a go od title A i s e stopp ed ,

f rom de nying the v alidity of the sale The maxim n emo p lus
f
.

j uri s t r ans err e p ote st quam s e i p s e habet h as no app l ic ati on

where the o wner of good s h as so l ent him s elf t o ac cred i t the
title to another p e rs on .

P eople s B ank of H alif ax v E st ey 1 9 0 4 34 Can . , , .

R 4 2 9 at pp 4 34 4 38 ; but see al s o the di ssenting j udg

ment at pp 4 4 7 f f
. . ,
,

. .

Mere po ss e ss ion ap art from sp eci al circums t an c es d oes

, ,

not accr edit title or in othe r words i s no evid ence of title

, , ,

us u all y a man c an n ot be said to be the o s tens ibl e own er of

‘

goods merely b ec au s e he has them in hi s p oss e ssion The .

c h ar acter of the good s the c h a r a c t e r of the pl a ce in w hi ch th e

,

o wn er le ave s them or to which h e s end s them or the cus tom ,

ary oc cup ation of the p er s on to whom h e entrus ts them may , ,

however be such as to e s top the own er fr om denyin g to a

, ,

t ran sferee for v alue in good f ai th an d without notice th at

, ,

t h e p erson in po ss ess io n i s the own er ; or th e r e ma y b e other

circ umstanc es whi ch give to the p os s ess or of goods such os
ten si b le own ership as may e s to p t he owner f r om di sputing the
validity of a sal e m ad e b y t he pers on in p o ss e ss i on So i f the
f
.

own er of go od s del ivers t o another a d oc ument o title t o

th e good s h e may in ce rt ain circums tan c es be est opp ed from
d en yi n g the own ers hip o r ri ght to s ell of t h e hol der of
,

t he
d oc ument in the c ase o a sal e by the l atter to a purchase r or f f
v alu e in good f aith an d wi thout noti c e The d ecided cas es
are howe v er f r equently f
.

ar from c l e ar in the a pplic ation of

t he p rincipl e of e stoppel an d t h e gener al ap p li cab il ity of

, ,

t he
,

p ri n cip l e ha s b ee n o b sc ure d by t h e p assing from time t o tim e

of p art i al en actmen ts deal ing with p arti c ular cases of est o p
'

p el r at h e r t h an wi th th e gen e r al p ri n ci p l e The p rovisi ons

f
.

of t he succ essi ve F actors Acts an d t hose o th e S al e of Goo ds

58 C H A P TE R I V . W HO CA N GI VE A TI T LE .

of t h e good s or th e docum ent s of title to the good s the ,

delive r y or tr an sfer by th at p ers on or by a merc antile ,

a gent a cting for him of the go od s or documents of title

, ,

under an y sal e pledge or other di s pos ition thereo f to an y

,

p ers on receiving th e same in good f aith an d without no

tice of an y lien or other right of the origin al s ell e r in re
s pect of t h e goods s ha ll h ave the s am e e f
,
fect as if the
p ers on makin g th e delivery or tr an s fer were a merc antile
a ent in p o ss e ss ion of the good s or documen t s of title
g

with t h e cons ent of the owner .

( 3) I n thi s s ecti on the term merc antile agent shal l

me an a merca ntile a gent havin g in the cu s tom ar y cours e ,

of hi s bus ine ss as s uch a gent authorit y either to s ell ,

g oods or t o con sign goods for the purp os e of sal e or to ,

buy good s or to ra i s e money on the security of go od s

,
.

“ ”
The definition of merc antile a gent i s copied from the
F actors Act R S O 1 9 1 4 c 1 37
,
. . . ,
. .

In the U ni ted Kingdom sub s 3 re ads as foll ows -

.

“
25 In thi s secti on t he term merc antile agent
.

has t h e s ame me an ing as in the F a ctors Acts .

“ ”
The definition of merc antil e agent in the F ac tors Act
1 8 8 9 i s the s am e as th at c ont ain ed in t h e O nt a rio F actor s
,

A c t s et out above
,
.

In the U ni ted Kingdom the F act o rs Act 1 8 8 9 cont ain s , ,

( in ss 8 an d . p rovi s ions identic al with sub SS 1 an d 2 -

. ,

“
w i th the addition of the words or under an y a greement for
”
s al e
,
pledge or other di s p os ition thereof after the words
“
other di sp o sition th ereof in e ach c as e I n Ont ari o the cor
re sp onding p rovi sion s of
.
,

the F actors Act h ave been repe al ed ,

as it s eemed u s ele ss to h ave s imil a r p rovi s ion s on t h e sa me

s ubj ect in two d ifi er en t s t atute s .

“
The word s h aving ag r e ed to buy in s ub S 2 -
.

h ave b e en the s ubj ect of several deci s ion s They do not c over .

the cas e of a s o c alled buyer h aving a mere option to com

,
~

p l e t e the purch as e by p ayment of in st al ment s of the p ur

chas e money but they do cover the cas e of a buyer who i s
-
,

under an obligation to complete the purch ase.

B elby v M atth ews [ 1 8 9 5 ] A O 4 7 1 ; Bel s ize Moto r
. ,
. .

Supply C o v Cox [1 9 1 4 ] 1 K B 24 4 an d c as es cited ;

. . ,
.
,

o
M art en v Wh ale [ 1 9 1 7 ] 2 K B 4 80
. ,
. .
 § 4 5 . S E LLE R OR B U YER I N P O S S E SS I O N . 59

In f ul fi hn en t of a contr a ct for the s al e of a c erta in qu a n

tity of copper the se llers fo r warded t o the buyers a bill of

l adi n g endors ed in bl ank for coppe r shi pp ed on the defend
ant s s hip to gether wi th a draf t for t h e pric e of the copper
’
,

for accept ance The buyer who was in s olvent did not accept
.

the dr aft an d deli ve re d the bill of l ading to the pl ainti f f

, ,

, s in

ful filmen t of a contract whi ch he ha d p revio usly to obtaining ,

p o sse ss ion of the bill of l adi ng mad e for the s ale to them of ,

copper an d they thereupon p aid hi m the p ri ce of the copp er .

The pl aintif
,

fs took the bill of l ading in good f aith an d with ,

out notice of the rights of the origin al s eller s in re spect of

the copp er The s ellers stopp ed t h e copper in trans itu In
.

f
.

an action by the pl ainti f s a gai n st the defend ant fo r non

delive ry of the copper it was held th at the buyer h aving ob ,

ta i n ed p oss e ss i on of the bill of l adi ng wi th t he co ns ent of th e

s ell ers the tr an sfer of it by hi m to the p l ai n t i fi s gave them
,

a good title to the copper un der s ub s 2 of s 2 5 [ On t s 2 6 ] -

. . . .

of the S al e of Good s Act an d th at the s ellers had no ri ght to , _

s t 0 p it in trans itu .

C ah n v P o cket t s B ri stol Ch annel Ste am P acket Co

.
’
.
,

[1 8 9 9 ] 1 QB 64 3 . .

In the Unit ed Stat es the p rincipl e of t h e dec i sion in C ahn

v P oc kett s B ri stol S t ea m P acket Comp any i s exp re ss ed in s
.
’
.

2 0 of the Uni form S ale s Act : see ch apter 3 § 38 The Un i ,

.

form S ale s Act 8 2 5 i s t o the same efi ect as s ub s 2 of the

, . ,
-
.

section of the S ale of G oods Act now under con s ider ation
'

( On t s 2 6; U K s
. . an d al so contai n s t h e following p r o
. . .

vi sion
2 6 Where a pers on h aving s old go od s c ontinue s in
. .

p oss es sion of the goods or of negoti able docum ent s of ,

title to the good s an d such retention of p os s e ss ion i s ,

fraudul ent in f act or i s deemed fraudulent under an y

rul e of l aw a creditor or creditors of the s eller may t r eat
,

the sa le as void .

In Ont ari o th e S ale of G ood s Act p rovides

58 N othin g in thi s Act sh all af
, fect en actment s
rel ating to condition al sa les bill s of sale or ch attel mort ,

g ages o r an y en actment rel atin g to the sale of good s

,

which i s not express ly repe aled by thi s Act .

60 C H A P TER I V . W HO CA N GI VE A TI T LE .

In the Unit ed Kingdom the corre sp onding p rovi sion ( S .

61 sub s 3) omits the refe r enc e s to condition al sale s an d ch at

,
-
. .

t el mo r tg age s .

In Ont ario the Condition al S ale s Act R S O 1 9 1 4 c , . . . ,

.

1 36 p rovid es
,

3 Where p o ss es s ion of goods i s delivered to a

.

p urch as er or a p rop os ed p urch as er or a hi rer of the m

, ,

in p ursu ance of a c ontract which p rovide s t hat the own

e rshi p i s t o rem ai n in t h e s eller or hi rer until th e p ay

ment of the purch as e p ric e or con sider ation money or

p art of it as ag ain st a su b s equent purch as er or mo r t
,

gag ee cl aiming from or under the purch as er p rop os ed ,

pur c h as er or hirer without notice in good f aith an d for

,

v al uabl e cons ideration s uch p rovi sion sh all be inv alid , ,

an d s uch purch ase r or p ropo s ed purch as er or hi rer sh all

, ,

b e deemed the owner of t he goods

unl e ss cert ain conditions ar e fu lfil l ed inclu d ing the exi st enc e ,

of a contract in writing an d in mo st c as es the filin g of a

copy of the contr act in the p rop er o f f
, , ,

ice within the time lim

i t ed by t h e st at ut e .

The C ondition al S ale s Act doe s not enl arge the common
l aw right s of tho s e wh o al low their good s out of their h ands ,

but it p rev ent s all who h ave not complied with i ts c ondition s
from ass erting cert ain common l aw ri ghts .

C an adi an Wes tinghou s e Co v Murr ay Shoe Co 1 9 1 4 . . .,

,

31 D L R 1 1 2 0 D L R 67 2 ; cf Stock v Meyers
. . .
,
. . Cook .
. . .

1 9 1 9 4 6 O L R 4 2 0 5 1 D L R 32 8 Commerci al F in ance
,
. . .
,
. . .

C orp oration v . Stratford 1 9 2 0 4 7 O L R 392 , , . . . .

Under the B ill s of S ale an d Ch attel Mor t g ag es Act R S O

1 9 1 4 c 1 35 i f
. . .
,

, . a p er s on rem ai ns l I l po ss e ss ion of good s after

,

h aving m ad e a bill of sal e or a ch attel mortgage of them or ,

afte r h aving s old them or a greed to m ake a sale or mortg a ge

,

of them the mortg age or sale or agreement for mo rtgage or

,

sa l e i s nul l an d void as ag ain s t cr editor s of the mo rt g ag or or

s eller an d a g ains t s ub s equent p urch as e r s or mortg age es

,
in
go od f aith for v alu able c on s i d e r ati on unle ss the m or t ga ge ,

or sa le or a greement for mo rt gag e or sal e i s evidenced by

, ,

a written document an d unle s s thi s document ac c o mp an

i ed by cert ai n af
, ,

fid avit s p re s cribed by the s t atut e i s reg

i s t e r e d in the proper o f f
,

ice within the time limited by the

s t atute .
 § 4 5 . S E LLER OR B U YER I N P O S S E S S I O N .

The B ill s of S ale an d Ch attel Mortg a ge s Act further pro

vid es :
11. Thi s Act s h all extend to a mortg age or s al e of
good s an d ch attel s which may n ot be the pro p erty of
or in the p oss ess ion cus tody or control of the mortg agor
,

or b argainor or an y person on h i s beh alf at the time

of the m aking of the mortg age or s ale an d n o t wi t h ,

s t andin g th at s uch good s o r ch attel s m ay be intended t o

be delivered at s ome fut ure time or th at the same ,

may not a t the ti me of the m a kin g of the mort g age or

s al e b e a ctu ally p rocur ed or p rovided or fit or re ady
m
for delivery or th at s ome ac t ay be required for the
,

m aking or c ompletin g of s uch g ood s an d ch attel s or

rendering the s ame fit for delivery .

In al l the province s of C an ad a in whi ch the S ale of

Go od s Act i s in forc e there ar e s t atute s s imil ar to the C ondi
t i on al S ale s Act an d the B ill s of S a le an d Ch a ttel M ortg a ge s
A c t ab ove mentioned There exi s t s however in the s e v ar
.
, ,

iou s p rovinci al s t atute s a bewildering divers ity which p re

e l ude s an y attempt t o write a c omment ary on them here .

§ 4 6. Th e F ac t ors A c t s.
I n the cas e of P ickering v B us k 1 8 1 2 1 5 E as t 38 the
. , , ,

buyer of go od s c au s e d the good s t o be tr an s ferred in the

bo o ks of the w areh o u s em an t o the broker through Whom
he h ad b ought an d the broker s old the g o od s to a s e c ond
,

purch as er for v alue in go od f aith an d without notice It .

was held th at the l atter obt a ined a good title an d the gen ,

er al principle of e s toppel was s t ate d thu s

Str anger s c an only l ook t o the a ct s of the p artie s
an d to the ex t ernal i n d i c i a of p rop erty an d not to the
,

priv ate c o mmuni c ati on s which may p as s between a

princip al an d h i s broker ; an d if a per s on autho r i z e an
other t o ass ume the app arent ri ght of di sp o s in g of
pro p erty in the ordi n ary c our s e of tr ade it mus t b e ,

pre sume d th at the app arent authority i s the re al auth

o ri t y.
62 C H A P TE R I v. WHO CA N GI VE A TI T LE .

The br o ad principle ab ove s t ated a pplic able t o c as e s in

which the owner o f
,

go od s h as c on s titute d an other per s on

h i s o s ten s ible a gent for s ale h as not alw ay s been appli e d ,

c on s i s tently by the c ourt s ( s ee an d the v ari ous F ac

tor s Act s t o g ether with s ome provi s i on s of the S ale of

Good s Act ar e only p ar ti ally s ucce ss ful eff
,

, ort s to s t ate s ome

of the c as e s in which the owner of go od s i s e s t oppe d be
c au s e he h as cl othe d another p er s on with o s ten s ible a gency
for s ale or with o st en s ible owner shi p .

In the United Kingd o m the F actor s Act

was s ubj e ct t o cert ain excepti on s m
,

, a de ap pli c able t o S cot ,

l and i n 1 8 9 0 ) s uper s e ded the e arlier le gi s l ati on rel ating t o

s a le s an d ple dge s of good s by p e r s on s in p o s s e s s ion of the

go od s o r of document s of title to the go od s A s t o the hi s .

t ory of the l egi s l ati on se e C ole v N orth We s tern B ank , .

,

1 8 75 L R 1 0 C P 354 ; Ch al me r s S al e of Go od s 7 t h ed
'

. . . . .

1 9 1 0 pp 1 5 2 1 5 3 ; E w art E s toppel pp 35 3 f f; n ote s in 2

, , ,

R C a t pp 4 33 f fto H ollins v F owler 1 8 7 5 L R 7 H L

. .
, , , ,

. . . . . . . . .
, , ,

7 5 7 2 R C 4 09
,
. . .

A s h as alre a dy be e n n o ted in the I n troduct i on § 2 the , ,

F a ct 0 1 s Act 1 8 8 9 h as been a dopte d i n Al b ert a B riti s h C ol

, , ,

umbi a N ew B run s wi ck N ov a Sc oti a Ont ari o P rince E d

, , , ,

w ard I s l and an d S as ka tchew an .

A s to the l aw in M an itob a see St ewa rt v R i c h ards on , . ,

1 9 2 0 , 30 M an R 4 8 1 . . .

The followin g i s th e text of The F actor s Act in On t ari o ,

R S O 1 9 1 4 c 1 37 e a ch s ecti on bein g foll owe d by a note r e

. . . , .
,

ferring t o the c orre s p ondin g s ec ti on of the ori gin al s t atute

1 Thi s Act may be cited as Th e F ac tor s A c t
. .

[.U K s 1 7 Thi s Act may be ci te d as The F a c t or s

. . .

Act ,

2 In thi s Act
.
,

( a) D ocument of title s h all include an y bill of l ad

in g an d w arehous e receipt as d efin ed by Th e ,

M er c an ti l e L aw A men d men t A c t an y w a rrant ,

or order for the deli very of good s an d an y oth

er document u s ed in the ordin ary c o ur s e o f
,

bu s ine s s as pro of of the p o ss e ss i on or c ontrol of

 § 4 6. T HE FA C T OR S AC T S . 63

go od s or authorizing or purp orting to author

,

ize either by endor s ement or de l ivery the p os

, ,

s e s s o r of the document to tr an s fer or receive

goods thereby repre s ented ;
“ ”
(b) Go od s s h all include w are s an d merch andi s e ;
”
(0 ) Merc antile a gent s h all me an a me rc antile
a gent h aving in t he cu s t o m ary c our s e of h i s
bus ine s s as such ag ent authority either to s ell
go od s or to c on si gn g obd s for the purp o s e of
,

s al e
, or to buy g o od s or t o r ai s e money on the
,

s e curity of good s ;
“ ”
(d) P ledge s h all include an y c ontr a ct pledging or

givin g a lien or s e curity on go od s w h ether in ,

c on s ider ati on of an o ri gin al adv ance or of an y

further or c ontinuing adv ance or of an y p e c un
i ar y li ability .

( 2 ) A per s on s h all be deemed t o b e in p o s s e s s i on of

go od s or of the document s of title t o good s where the
good s or document s ar e in h i s a ctu al cu s tody or ar e
held by an y other per s on s ubj ect to h i s c ontrol or for
h i m or on hi s beh alf .

[In the United Kin gdom the ctor s Act 1 8 89 s 1 con

F a .

t ain s s i mil ar provi s i on s but there a r e verb al di ff

, , ,

,
erence s in
”
“
the definiti on of document of title S ee 4 3 for the text .

of the di f f erent st atut o ry definiti on s of document of title ,

bi l l of l ading an d w arehou s e r eceipt ] .

D i sp osi ti on s by M er can ti l e A gen ts .

3. Where a merc antile a gent i s w ith the c on

s ent o f
,

the owner in p o s s e ss i on of go od s or of the docu

,

ment s of title to g o od s an y s ale pledge or other d i s

p o s ition o f
, ,

the go od s m ade by him when a cting in the

,

ordin ary c our s e of bu s ine ss of a merc antile a gent s h all , ,

s ubj e ct to the provi s ions of thi s Act be as v al i d as if ,

he we r e e xpre ss ly auth orize d by the o wner of the go od s

to m ake the s ame ; provi ded th at the per s on t a king u n
der the di s p o s ition act s in good f aith an d h as not at ,

the time there of notice th at the per s on making the d i s

p os ition has not authority to m ake the s ame .
64 C H A P T ER I V . W HO CA N GI V E A TI T LE .

( 2 ) Where merc antile a gent h as with the c on s ent

a ,

of the own er been in po ss e ss ion of good s o r of document s

,

of titl e to good s an y sale pledge or other di spo si tion

, ,

whi ch w o ul d h ave b e en v alid i f the con s ent h ad c on

tinned s h all be v alid notwith s t andin g the determin a
,

tion of the c ons ent ; p rovid ed th at the p ers on t aki ng

under the di s p o s iti on act s in go od f aith an d h as n ot at
the time th e re of n o tice th at the c on s ent h as b een deter
mi ne d .

( 3) Wher e a merc antile ag ent h as obt aine d p o ss e s

s i on of an y document s of titl e to go od s by re as on of h i s

bein g or h aving been with the c on s ent of the own er in

, ,

p o ss e ss i on of the g o od s repre s ente d ther e by or of an y ,

other document s of title to the go od s h i s p o s s e s s ion of

the fir s t menti oned document s s h all for the purp o s e s of
,

thi s Act b e deeme d to b e with the c on s ent o f

,

,
the owner .

( 4 ) F or t he pur p o s e of thi s Act the c onsent of the

owner s h all be pre s ume d in the ab s en ce of evidence t o
the c ontr ary .
[ Thi s s e cti on i s c opie d fro m s 2 of the F a ctor s Act
.

4. A pledge b y a merc an til e a gent of the document s

of title t o good s s h al l b e deemed to be a pledge of the
g o od s .

[Thi s s e cti on i s c opied fro m S 3 of the F act or s Act

.

5.Where a m erc antile a gent ple dge s g ood s as sec ur

ity for a debt due from or li abil ity incurre d b y the
pledgor to the pl edgee before the time of the pl edge ,

the ple dge e s h all ac qui re n o further ri ght t o the go o d s

th an c ould h ave be en enforced b y the pled gor at the
time of the pledg e .

[Thi s s e cti on i s copie d from s 4 of the F actor s A c t

.

6. The c on s ider ation ne ce ss ary for the v alidity of a

sa le pledge or other di s p o si ti o n of go od s by a merc an

,

tile ag ent i n pur s u ance of thi s Act may b e either a

, ,

p ayment in c as h or the delivery or tr an s fer of other

,

go od s or of a document of title t o go ods or of a ne go

, ,
66 CH A P TER I V. W HO CAN GI VE A TIT LE .
'

s 2 6; U.K. s. out S 1 1 of the On t ari o F actor s

25 ) ar e s e t

Act rel ated t o the e f f

. . .

ect up on an unp aid s eller s lien or r e ’

tenti on or s topp a ge in tr an s itu of a s ale or pledge of the

good s by the buyer t o a third per s on an d was in the s ame ,

terms as t he provi s ion on thi s s ubj e ct now c ont ained in the

S ale of Go od s Act ( On t s 4 6; U K s .di s cu ss e d in
. . . .

c h apter 7 75 , In the United Kin gdom s 1 0 of the F actor s

. .

A c t 1 8 8 9 rel ates to t he same subj ect an d was not repe aled

, ,

b y the S ale of G o od s Act ,

S up p l emen tal .
12. F or the pur p o se s of t hi s Act the tr an s fer of a
document of title by endor s ement or where the ,

document i s by r by i t s expre ss term s tr an s

fe r abl e by dcliv ake s the good s deliver able t o

the be arer then,

[ Thi s s ecti on d from s 1 1 of the F actor s Act

.

Not g in thi s Act s h all authorize an

or dep art fro m hi s authority as be
h i s princip al exempt him from
,

s o doin g .

Nothing in thi s Act s h all vent the owne r of

fr om rec o v e ri n g them from a gent at an y time

the sale s h all pre v ent the

of goods pledge d b h aving the

redeem the go od s
o n s ati s fying the
ledged an d p aying
,
time before the s ale
for which the goods
a gent if by hi m r e ,

an y money in re sp e which the a gent would

be entitled good s or
thereto ,
y way of
from
the goods
rem aining in hi s h and s as the p
good s afte et i n g the

Act s h all of
from recovering from the buyer
price agreed to be p aid for the s ame or an y p art of ,
 § 4 6. T HE F A CT O R S A CT S . 67

th at price s ubj e ct t o an y ri ght of set ofi on the p art of

,

t h e buyer a g ains t the a gent .

[Thi s s ection i s c opied from s 1 2 of the F actors Act .

1 889 with s ome modific ati on s

,
The . h as
“ ”
the word s civil or crimin al after t
” “
ity in sub s 1 an d the w ord s or hi s
-
. ,
” “ ”
r up t c y after the w ord a gent where it
in s ub s .
-

14 The provi s ions of th i s Act sh all be con strued i n

.

amplific ation an d not i n der og ation of t h p ower s ex

e
e r c i sabl e by a n a gent independently of

[Thi s s ection i s c opied from s 1 3 of actor s Act

.

4 7 . Negot i ab l e d oc umen t s i n t h e Un it e d S t ates .

Th ere
i
ar en o provi s ion s of the S ale of Good s Act corre s

p onding with s s 2 7 t o 4 0 of the Uniform S ale s Act rel atin g

.

t o ne goti able document s of title In view of the f act th at

.

th e Uniform S ale s Act h as alre ady been ad opted in New

Y ork an d in twenty two other s t ate s ( s ee the Introducti on
-
,

the s ecti on s in que sti on ar e s et out below as being

of s ome pr actic al imp ort ance to C an adi an l awy er s whos e ,

cli ent s may be eng aged in tr an saction s gover ne d by the s e

s t atutory provi s i on s .

The Uniform S ale sA c t provide s

76
. I n thi s Act unle ss the context or s u bj ect mat
,

ter otherwi se require s

D ocument of title to good s include s an y bill of
“
l adin g ,

dock w arr ant w arehous e re ceip t or order for the delivery

,

of good s or an y other d ocument us ed in the ordin ary c ours e

of
,

bus ine ss in the sale or tr an s fer of goods as proo f of t he ,

po sse ss ion or c ontrol of t he good s or authorizing or p ur ,

p orting to auth orize the po s s e ss or of the document t o tr ans

fer or ent or by delivery goods ,

re p t e s
in which it i s s t ated th at t h e
good s be delivered t o the be arer or ,

to the order of an y per s on n amed i n s uch documen t i s a

ne goti able document of title .
68 C H A P T ER I V . W HO CAN GI VE A TIT LE .

28. A negoti able document of title may be negoti ated by

delivery
( a ) Where by the term s of the doc ument the c arrier ,

w arehou s em an or oth er b ailee i ssuing the s ame under

t ake s to deliver the go od s to the b e arer or ,

( b ) Where by the term s of the document the c arrier ,

w arehou s em an or other b ail ee i ssui ng the s ame under

t ake s to deli ver the good s t o the order of a s pecifi ed p er
s on ,
an d such p er s on or a s ub s e quent in dor s ee of the d oc

ume n t h as indor s ed it in bl an k or to b e arer .

Where by the t erm s of a ne goti able document of title the

good s ar e de l iver able t be arer or where a ne goti able docu
m en t o f title h as be en
holder may indor s e the o hims elf or to an y other sp e
ci fi e d the document s h all there after
be ne goti ated only by or s emen t of s uch i ndor s e e .

2 9 . A ne goti able do of title may b e n e g oti ate d by

per s on t o who s e order th e g ood s are
oc um en t deliver ab le S uch indor s e
.

c d p er s on If '
.

s on it may
,
ne goti ated by
be arer or to
i fie d per s on S u b s e qu e t i at i o n may b e
'

m anner .

o c umen t of title which 0 an undert a king

w arehou s em an or othe to deliver t he

be arer to a spe cifi e d p e
,
order or to the ,

like
”
not ne goti able
‘
,

a ment may ne v er

d efi n
fthe
o c w are
b ai lee i ss uin g a d o c umen ti e o f
“ ”
e words not ne goti able ne goti

31 . A d oc um ent of title which i s not in s uch form th at it

c an be negoti ated by delivery may b e tr ans ferred by the
 4 7. N E G O TIA BLE DOCUM E NT S I N U S A . . . 69

holder by deli v ery to a pur ch as er or done e A non n e go . -

ti able documen t c annot be ne goti ated an d the i ndors eme n t

of s uch a document gives the tr an s feree no ad d
32 . A ne goti able document of title may be
( a ) B y the owner there of o r ,

( b ) B y an y pe r s on to whom the p o s se ss io
of the document h as be en entrus te d b y t h e o wner ,

the terms of the document the bai

ment und ert ake s to de l iver t
per s on to whom the p o ss e ss io n or
ment h as be en entrus ted or if at the time 0
,

ing the document i s i n s uch form th at it

-
b e n e go
t i at e d by de l ivery .

[Th e Commi ss ion er s on Unifo rm St ate ad d th i s

note to S J32 :
B y thi s se cti on a ne goti ab le document of ti tl e i s n ot gi ven
the ful l n eg o ti ab ili ty of a bill of exch an ge in asmuch as ,

neither a thief nor a finder i s wi t hi n t h e terms of th e sec

z

ti on B y the Uni form B i l l s of L ad i ng Act ho wever the

. , ,

C ommi s s ioner s on Uni form St ate L aw s adopt ed the prin

c i p l e of full ne goti abili ty . I n a j uri s di cti on wh ere it i s de
s ired th at t h e S ale s Ac t an d the B i l l s of L adin g Act s houl d

b oth be p ass ed an d sh o uld be i n h armony t he foll owi n g ,

s ub s titute i s s ugge s te d for s e ct i on 32 of the S ales Act as

ab ove printed

Sec 32 A ne goti ab le document may be negotiated by

'

. .

an y per s on in p o s s es s io n of the s am e howev er s uch p o ss e s

,

s i on may h ave been acquired if by the ter ms of t he docu

,

ment the b ailee i ssui ng it undert ake s t o de l iver t he good s

,

to the order of s uch p er s on or if at the time of negoti ati on

,

the document i s in such f orm th at it may be ne goti ate d by

delivery ] .

33. A per s on to ne goti able doc ument of title h as

been duly n e g o t r es thereby ;

( a ) Such good s as the per s on ne g oti atin g

the d o c umen ability to convey to a

purch as er in good f aith for v alue an d al s o such title to

'

the good s as the per s on to who s e order the good s were to

be de l ivered by the term s of the docume nt h ad or h ad
70 C H A P T ER I V . W HO CA N GI VE A TIT LE .

ability to c onvey to a purch as er in go od f aith for v alue

“
,

an d

( b ) The dire ct obli g ati on of the b ailee i ss uing the d o c

umen t to h old p o s s e s s ion of t he g ood s for him a ccordin g

to the term s of the doc ume nt as fully

‘

as if such b aile e
h ad contr act ed di rectly with him .

A per s on to whom a document of

34 . title h as bee n
tr an s ferred but not ne goti ated acquire s thereby as a g ain st
, , ,

the tr an s feror the title t o the go od s subj ect t o the terms

, ,

of an y agreement with the tran sferor .

If l e s uch per so n al s o ac
,

quire s e wh o i s sued t h e docu

ment an d thereby to acquire the
'

dire ct aile e to h old p o s s e ss i on of the

go od s t o the term s of the document

‘

on of such b ailee by the tr an s feror

g o t i ab l e document of title the title ,

good s an d the ri ght t o acqui re t he

may be defe ated by the levy o f an

of t he
tr an s
r of a

re a n eg ot tr an s ferred
of the tr an sferor
for negoti ati on the t,
a cquire s a right

tr an sferor to compel indors e the docu

a c ontr ary i ntenti on The ne goti ati on
f
fec t as of the time the indorsement i s

wh o for ate s or tr an s fe r s a

by i r y including one,

alue docu ment of title

un l es c ontr ary intenti on appe ars . w a rr ant s
Th at the document i s genuine ;
Th at he h as a le g al right t o ne goti ate or tr an s fe r

c
( ) Th a t he h as knowled ge of no f act whi ch woul d
imp air the v alidity or w orth of the document an d ,
 § 4 7. N E G O TIA BLE D O C UM E NTS I N U S A
. . . 71

( d ) Th at he has right to tr an sfer the title to the

a

good s an d th at the good s ar e merch ant able or fi t for a

p articul ar purp o s e whenever such w arr antie s would h ave
,

been implied if the c ontr a ct of the p artie s h ad

tr an sfer without a document of title the good s re
ed thereby .

37 . The indor s ement of a document of title s not

m ake the indors er li able for an y f ailure on the p art of the
b ailee wh o i ss ued the document or p revi ou s there
of to fulfil their re spective oblig ation s .

38 . The v alidity of the ne goti ati o n of a ne go

ment of title i s not imp aired by the f act th at the
was a bre a ch of duty on the p art of the per s on
n e goti ation or by t h e f act th at the o wn er of t h
’
,

was induced by fr aud mi s t ake or dure ss t o

,

s e s s ion or cu s tody there of t o s uch pe r s on if the per s on t o

,

whom the d ocument was s ub s e quently ne goti ated p aid v alue

therefor without notice of the bre ach of duty or fr aud
, , ,

mi s t ake or dure ss .

39 . If the go ods are delivere d t o a b ailee by the owne r

or by a per son who se ac t in c onveying the title to them to

a purch as er in good f aith for v alue would bind the owner

an d a ne goti able document of title i s i s s ue d

or them theyf
c annot there after w hile in the p o ss e ssio n of s u ch b ailee
, ,

be att ached by garn i s lm e n t or otherwi s e or be l evi ed up on ‘

under an executi on unl ess the document be fir s t s urrendered

to the b aile e or i t s n e go ti ation enj oi ned The b ailee s h all in
.

n o c as e be compelled to deliver up the ac tu al p o s s e ss i on of

t he good s until the doc ument i s s urrendere d t o hi m or i m

p ounded by the c ourt .

4 0 A credit or who s e d ebt or i s the owner of a n egoti a ble

.

document of title s h all be entitled to s uch ai d fro m c ourt s

of ap propri ate j u ti on an d otherwi s e in
n s ati sfying the cl ai m by me an s
or in e quity in re g ard to pro
be att ach ed or l evied upo n by
 C H AP T E R V .

RE P RE S E NTATI ONS , COND I TI ONS AND

WARRANTI E S .

Repre s ent ation s .

Condition s an d warrantie s .

Stipul ation s as t o time.

R emedi es for bre ach of condition an d br each
warranty .

Implied cond w arr antie s .

S ale s by de s c an d by sample .

Implied conditi as to qu ality an d fitnes s .

5 1 . R ep r esen t at i on s .

A contract of sale ay include expre ss or implied term s ,

di stin an d w arr antie s The se ar e st ate

.

ar e incorp or ated in the contr a ct ,

Act con t ains

p arty w hic h
on t r ac t but which

to the e f fect of such

i si on ex cept th at it

n including the
l aw,
ar e i ncon s i s tent with

in p articul ar the
to the l aw ip al an d a gent an d the
dures s or coercion mi s ,

sh all c o ntinu e to apply

ingle ch apter in t he
a s

an d therefore it doe s not attempt t o

the l aw of repre sent ation s conditi on s an d war

so f
,

ranti ar as they are gove r ned b y con sider ation s c om

mon to the whole fi eld of contract .

Ch almers S ale of Good s 7 t h ed 1 9 1 0 p 34

, ,
. ,
. .
74 C H A PT ER V . C ON D I TI O N S AN D WA RRANTI E S

P ollock ,
Contract 8 th ed 1 9 1 1 pp 5 5 69 ; D erry v ,
.
,
.
-
.

P eek App Cas 337 R edgrave v H urd 1 8 8 1 2 0. . .

Ch .
, , ,

D 1 ; Newbi ggi ng v Ad am
. 1 88 6 34 Ch D 5 82 ; .
, , . .

An son Contr act 1 5 th ed 1 9 2 0 pp 1 9 1 1 9 7 ; L ong v

, ,
.
, .
-
.

Smith 1 9 1 1 2 3 O L R 1 2 1 ; C aldwell v Cockshutt P low

, ,
. . . .

Co 1 9 1 3 30 O L R 2 4 4 1 8 D L R 7 2 2 ; D ominion P aper
.
, ,
. . .
,
. . .

B ox Co v C rown T a ilorin g Co 1 9 1 8 4 2 O L R 2 4 9 4 3
. . .,
,
. . .
,

D .L :R . 5 57 .
As to e stopp el s ee E w art E stoppel ch apter 8 ( F r aud , ,
.

or b ad faith not e ssenti al ) L ow v B ouverie [1 8 9 1 ] 3 Ch .

, .

8 2 ; B al ki s Con s olid ated Co v Tomp ki n s on [1 8 9 3] A C . .

, . .

39 7 .

Whether the cut ation be innocent or fraudulent s ,

es c i n d ed after the p o sition of t he

c annot b e re stored or
an d for v al ue acquired
the contract or after ,
the fo rmer st at e of things
,
p artie s h ave in good f aith
or po ss e ssory rights und er
p arty h as done s ome ac t
f the contr act The con .

es c i n d ed within a re as on able time th at i s , ,

s e of a time after the s t ate of thin gs i s

,

g th at in t h e c i r c umst of the p articul ar

p arty may f airly infer the right of r es c i s

oc k, Cont ract ,
8 th ed . 19 pp 62 2 . f
fcf . . An
n t r ac t , 1 5 th ed . 1 920, pp . 3, 2 1 67 -
Addi son v .

Auto an d T axi Cc ., 1 9 1 0 O .L .E . 5 1 , 1 6 D L .R . .

th co mp en sat by buyer fo r use an d

good title from

a a

with a void able apter 4 § 42 l ,

.

for the sale of a ch attel

grant r es c on the
In s uch fraud
pl ainti ffto c eed .

Co [1 9 05 1 1 Ch 32 6
‘

. . ,
,

1 1 ] 1 K B 666; cf B el l . .

v M acklin
.
,
1 8 8 7 , 1 5 Can . S .C.R . 5 7 6 at p 5 8 1
,
. .
 5 51. REPRE S E NTATI O NS 75

In Kennedy v P an am a et c Co 1 8 67 L R 2 Q B 5 8 0 at
. , .
,
.,
,
. . . .
,

l ckburn fter referring to s everal c ase s in e ach

'

p 5 8 7 B a J a

of
. ,

which a contract had been set aside on the ground th at t h e

buyer h ad not received the thing he had p aid for sa id ,

There i s however a ve ry , ,

c ase s where a contract may be res

fraud an d those in which it may
ground th at there i s a di f
,

ference in su
thing b argained for an d th at obtaine d It i s enough t o .

show th at there was a fr audulent rep re s ent a i on as to

t
an y p a r t of th at which induced the

the contr act which he seeks to re scind ;

been an innocent mi s represent ation or
doe s not authori ze a re sc i ss ion unle ss to show ,

th at there between
wh at s uppo s ed to be an d wh at was so as to

a f ailure of con s ider atio n F o r ex ample whe re .

,

bought under a belief th at it i s s ound if the ,

purch as er was induced to buy by a fraudulent rep re sent

ation as to the hors e s s oundne ss the contr act may be
’
,

re s cinded I f it was induced by an hones t mi s rep res ent

.

ation a s to i t s s oundne ss though it may be cle ar th at both

,

vendor an d purchas er thought th at they were de aling

about a s ound hor se an d were in error yet p urch as er ,

must p ay the whol e p rice un le ss the re wa rranty ;

,

an d even if there was a warra nty he c return the ,

hor s e an d cl aim b ack the wh ole pric e un le s s there w as ,

a condition to th at efiec t in the contr act .

§ 52 . Con d i t i on s an d Warran t i es .

A rep res ent ation whi ch i s sub s equently m ade p art of the
co ntr act ce as es to be a repre sent atio n an d become s s o mething

more viz a p r o mi se th at s uch a thing i s or shal l be

,
.
, .

An son C ,

The que stion

has ce as ed to be a
of the contrac t i s ,

“
A warr anty ’

8 2 ; U K s 6
. . 2 ) as me aning
. .
76 C H AP TER v . CON D I T I ON S A N D WA RR ANTI E S

An agreeme nt with reference t o goods which ar e the

subj ect of a contr act of sale but coll ateral to the m ain " ,

purpo se of such c ontract the b re ach of whi ch giv es ri se,

to a cl aim for d am ages but not t o a ri ght to rej ect t he

,

good s an d tre at the contr act as repudi ated .

An e arlier definition i s th at of L ord Abinger in Ch ante r

v H opkin s 1 8 38 4 M
. ,
W 39 9 at p 4 04 :
,
. .
,
.

A warranty i s an exp re ss or implied s tatement of some

thing which the p ar ty undert akes sh al l be p ar t of a con
tr act ; an d though p art of t h e contr act yet coll ater al to
, ,

the expre ss obj ect of it .

“
A condition in t h e st atute A c onditi on i s
’
.

”
a term which i s s ence of the contra ct or in other ,

words which i s
,
by the p art ie s as a vi t al t erm going
to the root of the
Ans on op p 1 83 1 86
, . ,

A v al u abl e o t he term s condition an d War

”
r anty with q from m any s our ce s i s cont ained in
0 pp 1 9 1 f f
, ,

Ch almers S al e , ,
. .

In P r att i n a j u d gment which was ap prov ed by

,

t he H A O F letcher Moul ton

. .

L .J . s 2 K B 1 0 03 at p
. ,
.

or i s re ady
h at c n t ract o

t he other contracting
re st upon him B ut .

0 d of it has b een rec o gn ized

h obli gation s ar e of equ al import ance .

e s ome which go so to the sub st ance of the

or in other word
,
o e ss enti al to its very _

may f airly be c ous i

an t i al failur e t o p e r

the other h an d t her e ar e '

goe s to
ar e equ ally '

of an y o n e

in the B ut
c as e of the former cl ass he has t he ‘

alte r n ative of tre ating

78
"

C H A P TER V . C O N D I TI O N S AN D WA RR ANT I E S

t nce an d found ation of the adventure which the contract

s a

i s intended to ca rry out .

E x ampl es of condition s
B ehn v B urne ss 1 8 63 3 B
. S 7 5 1 6R C 4 92 ( ve ss el
, , . .
,
. .

now in t h e p ort of
Varley v Whipp [1 9 0 0 ] 1 Q B 5 1 3 ( re ap ing ma chine
.
, .

des cri bed as new the p reviou s ye ar an d as h aving been

u s ed to out o nl y 5 0 or 60 acre s ) as to thi s c as e s ee 56 .

F i sher R eeve s , Co v Armour Co [1 9 2 0 ] 3 K B . . .

, .

“
61 4 ( good s ex store

E x amples of wa
New H Co v Webb . . ,
1 9 1 1 , 2 3 O.L .R . 4 4
rebuilt ’

e ,
1 9 1 5 , 35 2 6 D .L .R.
w ar r anty th at horse s ound ) .

8 , 4 7 Can . S .C.R. 344 , 4 3

D .L .R . 68 6 ,
‘
afi i r mi D .R . 1 32 . 4 0 169
( wa rranty of goo d (1 cert ain hors e power -
ca

p ac i t y ) .

C as e M achi ne C 1 9 , 5 9 Can .
S C.R
. . 1 R 30 rev . .
,
S as k L R 1
. . .
,
44
D .L .R . ( warranty exclude of cont ra ct ) .
I n the i t edKin gdom the of warr anty al
r e ady quot ( On t s 2 ; U K s
. . . . . only to E ngl an d
an d an d the S ale of Good p rovide s
gards Scotl and ,
y shall be
0 be a f ailure to p e p art of the

further p rovides ( U s. 11 (2 )
In Scotl and f ail a r ,
the s eller to erform

al p art of a contr act al e i s a b re of con

0 reject t he good s an d tre

or to re tai n the g o od s d trea t
rm such materi al bre ach
to a cl aim for compen sation or d am
a ge s .
 § 5 2. CO N D I TI O N S AN D WA RRA NTI E S . 79 '

In the United St ate s the us e of the terms condition an d

warr anty i s dif
”
f erent from their use in t he S ales of Goods
Act In t he l atte r s t atute the te rm s indic ate two ki nds of
.

stipul ation s or promi s e s the perform ance of a condition

—

being e ss enti al an d i t s bre ach therefore giving r is e

,

right to rep udi ate the contr ac t the perform ance of a w ,

n ot being e ssenti al an d i t s bre ach therefore merely giv

,

to a cl aim for damages In the Uniform S ales Act. ,

other h and thi s di stinction i s obliter ated both kin ds of prom

, ,

i s es be ing d es ign ated w ar r anti es an d

contract an d rej ect the good s being allowed f
,

o
“ ”
w arr anty The term condition i s app arently
.

n arrower s e ns e of a term by whi ch the obligation

the p arties i s m ade subj ect to the h ap p eni ng of a
as inclu di ng a p ro mi s e the per of ,

See 5 4 where t he relevant provi sion s of

,

Act are quoted .

as to t i me .

od s Act ( On t
U K s 1 0 ) p rovide s ; . s. 12 ; . .

fif
.

er en t intention appears from the

terms of the co ntract s tipul ation s as to tim e of p ayment
,
.

ar e not deemed to be of the es s ence of a contract of sa le

Whether an y oth er stipul ation as to time i s of the es s ence
of the cont r act or not depend s on the terms of the contract .

In the United Ki ngdom it i s furt her pro vided by s ub s 2

f
-
,
. ,

that in a contract of s al e month m ean s p r ima ac i e c alen

“

d ar month In On tar i o it i s p rovided by th e Interpret ation

.

Act R S O 1 9 1 4 c 1 s 2 9 th at in eve ry st atute wi l es s t he

,
. . .
, . ,
.
, ,

”
context othe rwi se require s month sha ll mean c al end ar
,

month .

In H artley v H ym an s [1 9 2 0 ] 3 K B 4 75 at pp 4 8 3
.
,
. ,
.

Mc Cardi e J refe r ring to the foregoin g sec tion sai d : ,

Thi s very slender notion of th e exis ting ;

r s 61 ( 2 ) [On t s 5 8 . . .

he rul e s of the c dmmon l aw

save in s o f
,

ar as they ar e

f thi s Act
sh all continue to apply to cont ract s for th e s al e of goods .
80 C H AP T ER V . CON D I TI O N S AN D WA RR ANTI E S

Now the common l aw an d the law merch ant did not m ake
the question whether time was of the e ssence depend on
the terms of the contract un l ess indeed thos e term s were ,

express on the point It looked r ather to the nature of .

the contract an d the ch aracter of the good s de alt with

In ordin ary commerci al contract s for the sale of goods th e
rul e cle arly i s th at tim e i s p r i me ac i o of t he e ss ence wi t h f
re spect to delive ry: see per L ord C airn s in B owe s v .

Sh and 1 8 7 7 2 App Cas 4 5 5 4 63 4 64 ( sale of rice ) p er

, ,
. .
, ,

Cotton L J in R euter v S al a 1 8 7 9 4 C P D 2 39 2 4 9
. .
,
. , ,
. . .
, ,

( sal e of pepper ) an d p er L ord E sher M R in Sh arp v . .

, .

Chri stmas 1 8 9 2 , ,
o es ) In .

Pa ton v P ayne . ,
was held
by the H ou s e of sale an d

delivery the e ssence .

This p oi de alt with in B enj amin on S ale 5 t h ,

cd .
,
pp . 0 gener al rul e a pp e a rs to be s t ated

in th at in B l ackburn on S ale 3r d c d pp
2 4 4 if
,
.
, .

, more clearly tre ated an d it i s l aid

n t rac t s s tipul atio ns as to time ,

of the
h at the relev ant
mari z ed in H al s
With the
p ass age in Addi s on

ess ence of t he c on
the p res ent c as e it ,
th at a vendor who
o deliver within ated p eri od c ann ot

call upon th e b d eliv ery af t er

h as exp ired H e ed to fulfil the
f
.

the s eller s de aul t an d

’

was not re ad wi l ling to c ar ry out hi s

at thi s i s so it ,

juristic r esul t time i s of of

S al e of s, Good s, p p . 1 2 5 1 2 7 ;
'
- al e

O f 1 9 1 0 pp , . 33, 2 07 As to time . of delivery of

goods, s ee chapter 6 63 , .
82 CHA P TER V . CO N D I TI O N S AN D WA RRANTI E S

delivery within th at period may be w aived even after th at

p eriod has expired ; but it would seem th at where the contrac t
i s wi thi n the St atute of F r aud s ( S ale Of Good s A ct On t s 6; , . .

U K s the w aiver mus t b e evidenced by wri ting

‘

. . . .

H artley v H ym ans [1 9 2 0 ] 3 K B 4 75 ( c as e s r e
.
,
.

v iewed ) .

In two c as e s the i nj ur ed p arty may be obli ged to tre at

a bre ach of conditi on as a bre ach of w arr anty .

The S ale of Goo d s Act ( On t s 1 3 U K s 1 1 ) provide s . . . . .

13 . Where a contract of sale i s not s ever able an d , .

'
the b uyer has accept ed the go ods or p art thereof or , ,

where t he contr a goods the prop e rty i n ,

which has p ass ed bre ach of an y condition

to be fulfilled by c an only b e tre ated as a bre ach

of w arr anty an d ,
ground for rej ecting the good s
an d tre ating the as r epudi at ed unl ess there be

re ss or implied to th at e f
,

a t erm of the fect ,

.

(4 ) c as e of an y
conditi i s excu s ed b y

con
gi n al l y a

warranty in

on d i t i on , .

ar e con
condition as a breach

sv P ratt [1 9 1 1 ] A O
.
,
. . 4, [1 9 1 0 ] 2 KB .

Moulton L J at p 1 0 1 . ., . cf Merrill
.

O L R 5 72 , 5 4
. . .
( retention
by b uyer ) .

s two c ases I n

choice of remedie s ordin arily given ,

frbre
o ch of condition
a .
 5 54 . BREAC H OF C O N D ITI O N OR WA RRAN TY . 83

W alli s v P r att [1 9 1 0 ] 2 K B 1 003 at p 1 0 1 3

. ,
. ,
. .

The qu estion when the property in good s p as se s from th e

s eller to the buyer i s di scu sse d in ch apter 3 A s to the c fi ec t .

Of the p ass in g of the prope rty upon the buyer s remedie s in ’

cas e Of bre ach of condi tion see Arm and v Noon an 1 9 1 8 4 1 ,

. , ,

OL R
. . . 4 1 D L R 4 33 ; H all am v B ainton 1 9 1 9 45 O D
. . . .
, , .

R 4 8 3 4 8 D L R 1 2 0 s C su b n o m B ainton v H all am ; 1 92 0
. ,
. . . , . . . .
,

60 Can . S C B . 32 5 , 5 4 D .L R 5 37 .
The remedi es for bre ach of wa rr anty ( i ncludi n g the cas es ,

in which the buyer elect s or i s comp el led of

c ondition as a bre ach of w a r ranty ) ar e d efi n Of ,

G OO n t 8 5 2 ; U K s 5 3) as follows
. . . . .

1 ) Where there i s a b re ach of y the

wh ere the buyer elects or i s com tre at ,

ch of condition on the p art of as a

warranty the buyer i s not by , 01

‘

h of warr anty entitled to rej ect the good s but ,

I
t the sell er t he b re ach of warran ty i n
diminution or extinction of the p ri ce ; or
( b ) m aint ain an action ag ai ns t the sell er for dama ges
for the bre ach of w arr anty .

( 2 ) The me asure Of d am age s for breach f w arr anty i s

t he e stim ated l oss directly an d n aturall y r ting in the ,

ordin ary course 0 1 event s from the bre ach of warranty ,

.

( 3) In t h e c as e of bre ach of w arr anty of q uality such

loss i s p ri me ac i o :h e di f ff
erence betwee n the v alue of t he
g ood s at the time 0 1 delive ry to the b uyer an d the v al u e
they wo ul d h ave had if they h ad an swered to the warr anty .

( 4 ) The f act th at the buyer h as set up the bre ach of

w arr anty in dimi nution or extinction of t h e price doe s
not prevent hi m from m aint ain i ng an action for t he same
bre ach of warranty i f he ha s suf f ered f urther d amage .

In the United Kingdom it i s further p rovi ded

s ection s h al l p re judice o r

afi ec t the buyer s of rej ection in Scotl and as de

’

c l ared by th i s Act

The que stion as to easur e of d am ages i s di sc uss ed in

c h apter 8 ,
85 .
 C H A PT ER V . C O N D I TI ON S AN D WARR ANTI E S

As h as b een pointed out in t h e terms

“ ”
condition an d w arranty in the Act in the
Uni ted St ate s i s di f
f
erent from their S al e of Goods
’ “ ”
Act In the former s t atute the term w arranty includes bot h
.

the w arranty an d the ( promi ssory ) conditi on of the l atter

s t atute
,
an d the remed ie s allowed for bre ach of w a rr anty
under the former st atut e ar e corre spondingly Wider Th e .

”
term condition i s u sed in a c omp ar atively n arrow s en se
“

in the Uni form S ales Act .

In the United St ates the Uniform S ale s Act provides

11 . Where the obli gation of either p arty to a
i s s ubj ect to an y condi tion which

p arty h as p romis ed th at the con

dition should h app b e p erformed such firs t mention
th e non p e r form ance of
,

ed p ar ty may al so -
the con
di ti on as a bre ach arr an t y .

( 2 ) Wh ere the goods h as ri ot p ass ed ,

ay tre eller of h i s

fu rni s h goo ds as des c ri bed an d as w arr anted

by implic ation in the s a

the obli gation of the

c c ep t an d p ay for the

af fi rmation of f act or by the

t y if the
p romi s e i s to i h
an d if t h e buyer

af fi rm ation of the
good s nor an y
,
ur p o r t i n g to be a

the s eller s Opin all be con strued as

’

Where there i s of Warr anty by the

the buyer may at hi s ,

Accept or k eep the g

s el ler the

ment in di
Accept or
ag ain s t t h
86 C H A P T ER V . C O N D I TI O N S AN D WA RRANTI E S

the lo ss directly an d n aturally resulting in the ordin ary ,

cou rse of event s from the bre ach of wa rranty

'
, .

( 7 ) I n the c as e of bre ach of wa rranty of qu ality s uch ,

lo ss in the ab sence of speci al circum st ance s s howing p roxi

m ate d am a ge Of i s the di f
f
,

a gre ater amount erence be

tween the value Of
,

the goods at the time of delivery to the

buye r an d the v alue they woul d h ave had if they had -

answe red to the w a rranty

5 5 . 1 1n p 1i ed ti on s an d warr an t i e s
c on d i .

I n a cc ord ance with v ari ous provi s i on s of the S ale of

Goods Act condition s a
,
w arranties may be impli ed i n a
c ontract of sal e It i s
. ever p rovided ( On t s 5 4 ; U K
, ,
. . . .

s . 5 5 ) as follows

54 Where an y n t duty or li ability woul d ari s e

‘

under a contr act Of

,

s y implic ation of l aw it may be ,

negatived or v aried exp re ss agreement or by the

cours e of dealing bet w n the p artie s or by u sa ge if the , ,

us a ge be s uch as to bin both p artie s to the contract .

O n t s 1 4 ; U K s 1 2 ) provid es
st an ce s Of
. . . . .

sale u n l es ,

s uch as to s how a in t ention ,

6 condition on the p
. the seller th at
of a sa le he has a ri s ell the good s ,

to sell he will
time when the

er sh all h a
ve an d

mp l i ed w arranty Od s s h all be free

an y ch arge an y

p arty not ,
'

e or at the t
in sub s -
.

wi ll
ell the goods unle ss the ci rcumst anc es ar e
,

th at the seller i s transferring only such pro

 § 55. I MPI I E D C f O N D I TI ONS AN D WA RRANTI E S . 87

perty as he may have in the good s There i s u sually no impli ed .

undert aking for in st ance where the seller i s selling in a

, ,

s peci al ch a r acter s uch as a mortgagee or pled gee or a sh erifi

, ,

under an execution .

P euchen v Imperi al B ank . OR ( re , . .

v iewing the ca s es ) Sims v M ar ryat t 1 8 5 1 1 7 281 ; . , ,

E i c hol z v B ann i s ter 1 8 64 1 7

. 7 08 2 3
,
1 98 , ,

cf 2 5 Hal sbury L aws of E ngl an d 1 5 3 ; Willi s S al e of

. , , ,

Good s 1 2 7 9 As to d am age s s ee Confed

,
-
. L ife A s ,

s oci a tio n v L ab att 1 9 0 0 2 7 O A R 32 1

.
, , . . . .

ion as t an d the

ne for quiet enj oyment .

gr antor th at h e h as t he .

the l atter
of a d ef ec

if the title
i s d efec t i Good s Act ,

rej ect the afte r wa rd s

di sturb ed he has hi s remedy by action for breach of w a rr anty

,
.

2 5 Hal sbu ry L aws of E ngl an d p 1 5 4 note ( n )

In the U ni ted St ate s the simil ar section Of
, . , .
,

the Uniform
S ale s Act contain s t he foll owi n g ad di tional p rovi sion
13 This section sh all not however be held t o
render li able a sheri f fauctione er mortgagee or other per
.
, ,

, , ,

son p rofess ing to s el l by vi rtue of authority in fac t or l aw

good s i n whi ch a t li r d per s on has a legal or equi t able i n

t er est .

5 6. S ales by d escr i pt i on an d by samp l e.

The S ale of Good s A ct ( On t s 1 5 ; U K s 1 3) p rovi d es . . . . .

1 5 Where there i s a contr act for the sale of go ods by

.

de scription there i s an implied condition th at the g oo ds

,

sh all c orre s pond with the de sc r iption an d if t he sale i s by ,

th at
the b ul k f the
good s do
The term mus t apply to all
c as e s where the purch as er h as not se en the good s but i s rely ,

ing on the d esc ription alone It would mo s t freq uentl y appl y .

88 C H AP TER V . CON D I TI O N S AN D WA RR ANTI E S

to un as ce rtained good s but it may be app l ic able to specifi c

, ,

go o d s where there i s no iden t ifi c ation otherwi se th an b y d e

sc ription .

Va rley v Wh ipp [1 9 00 ] 1 Q B 5 1 3 Ch anne l J at

.
,
. . ,

.p 5 1 6 sed cf New H am b urg Mfg Co v Webb 1 9 1 1 2 3

. . . . .
, ,

O L R 4 4 at p 5 5 ; Th orn et t v B eers [1 9 1 9 ] 1 K B 4 8 6
. . .
,
. . , .
,

at pp 4 88 9
. .

To tha t there i s an implied condition th at the go od s

s ay

s hall corr espond with the de s cription i s equi v al en t to saying

that the buyer i s e r As .

L or d Abinger sai d 838 4 M W

I f a man off
, . .

“
39 9 , e n d he s ends hi m

bean s he d oes not

,
the contract
i s to 11 g el s e in their s te ad

it i s
p 1 4 0 1 4 1 ; B owe s v . , .

Sh and 1 8 77 2
,
p 4 8 0 ; but if peas ar e .

delivered whi ch he de s criptio n ( an d the

sampl e ,
e by sample ) the buyer mu st ordin ,

as to the qu ality : s ee 57 .

by de s cription
Co v Re no 1 9 1 . . ,
O.L .R . 1 5 9 , 32 D .
trac t for NO 1 t i m
“
. h ay ; NO. 3 sup

as tine CO. v C an ad a P
. r Co ., 1 9 1 4 , 30 O h
1 7 D .L . R 8 1 3 ( en f p ecified typ e an d
“

. s

of contract b y d esc as well as by sa mple

C as ell a 1 8 ,

guar ante ed
‘
eal ed sa m
ki nd Of as well
eq ual to
v. P r att , 1 91 0] 2

( sal e b y

Th e S al e o f
Go d o s Act ( On t . s. 17 U K . . s. 15) provi d es
90 C H AP T ER V . CON D I TI ON S AN D WA RR ANTI E S

B l ackburn an d Mellor J J ) st ated and di scu ssed wi th refer

.
,

e nc e to c as e s the following rul es

,

d may be in spected by
the buyer an d there i s no fr aud on the p art Of
,
the seller ,

the m axim c av eat emp tor applie s even though the defect ,

which exi st s in them i s l atent an d not di scoverable on

,

ex amin ation at le as t where the seller i s n either the grower

,

nor the m anufacturer The buyer in such a case h as the

.

Opport unity of ex e rci sing h i s j ud gment up on the m at t er ;

.

he may if he choos e s r equire

it i s not an i mpli ed term Of
good s ar e of an y p articul ar

Secondly wh er,
is e of a definite exi stin g
a s al

c h attel s pecific ally d the actu al conditi on of which

,

i s c ap able of being ned by either p arty there i s no ,

a known d es crib ed an d defined article

f
,

n u ac t u r er , al it i s s tated to be
ar p ur p ose s till
,

descri b ed an d d efi n be a ctu ally sup

s no wa rranty th at a ns wer the p ar

where a m anu
rt hl y, ca ler contract s to
an a rticle which he s or p ro duce s or,

h he de als to be ap
,

f
n u ac t u r ed in whi ch he deals but
,

vendee h as p p o rt un i ty of ins p ect

ing it i s an implied
, contract th at he sh all
s upply a merch ant able a rticle .
 5 5 7 . QUAL I T Y OR F I TN E S S FOR PU RPO S E . 91

The s e mi l es h ave been frequently quoted an d di scu ssed in

l ater c as e s an d they form the b asi s of the present st atuto ry
,

provi sions upon the subj ect .

It wi ll be noted however th at the word war ranty i s

, ,

u s ed in the rule s In acc ord ance with modern u s age an d wi th

.

the di stinction cons i stently drawn in the S al e of Good s A ct

be tween condition s an d w arr antie s the term in qu es tion i s now
,

more des cribed as a condition .

Good s Act ( On t . s. 1 6; U K . . s. 1 provides

j cet to t hep rovi sion s of thi s Act O fy
an

al f there i s no implied
,
or con
t y or fitne ss for an ul a r pur
po se goo d s supplied under a contr act except as
follo
Wh ere the buyer ,
or by implic ation ,

m akes known t r the p art icul a r pur

p o s e for which the go od s are r equired so as t o
show th at the buyer relies on the s eller s ski ll
’

or judgment an d the good s are of a d esc r i p

,

tion which it i s in the cours e of the s eller s ’

b usine ss to supply ( whether he be the m anu

.

f ac tu rer or not ) there is an impli ed condition

,

th at the good s sh all be re as on ably fit for such

purp os e ; p rovided th at in the c ase Of a con

tr act f or th e sale of a s pecified ar i c l e unde r

i t s p atent or other tr ade n ame th ere i s no ,

implied condition as to i t s fitness for an y

p articul ar purpo se ;
Where good s ar e bo ught by desc ri p tion fro m
a s eller who de al s in good s of th at d e sc ri ption

( whether h e be the m anuf actur er or not ) ,

there i s an impli ed condition th at the goo d s

sh all be merchant able qu ality ; p rovi d ed
th at if buyer has ex amined the good s ,

as reg ard s

defect s whi ch such ex amin ation ought to h ave

reve aled ;
 C H A PT ER V . C O N D I TI ON S AN D WA RR ANTI E S

n impli ed w arr anty or condition as to qu ality or

fitne ss for a p articul ar purp o s e may be an
“

n exe d by the u s age of tr ade ;

( d ) An expre ss warr anty or condition doe s not nega

tive a w arranty or condition implied by thi s
Act unle ss inconsi stent therewith .

The statute further provide s ( On t s 2 ; U : K s 62 ) th at . . . .

the qual ity of goods include s their state or condition

le O f
.

P rior to the p as s ing of the S a Goo d s Act it was held

th at where there t for the sale of good s by a
m anufacturer as such ,
as a de al er there was an i m
, ,

plied condition th at the ere of the seller s own m anu ’

f ac ture John s on v Ra
. . 8 1 7 Q E D 4 38 ; followed in ,
. . .

Ont a rio i n R and all v sey Co

. 1 91 8 4 3 O L R .
, , . . .

602 A p ro v i sion to
. was cont ained in the S al e
of G ood s Act as origi C halmers but was st r uck ,

out in the H ou s e of from an y u sage of trade

s uch a ed unl e ss it c an b e con ,
“
s i d er ed as th at there i s no implied
warr anty 0 of goods sup
plied unde of sale except p rovided in the
,

s t atut e
.

See Hal sbury L aw s of E ngl

~

,
p 1 62 note ( t ) .
,
:

Od s 7 t h ed 46 ,
. .

l i c at i o n c av eat e mp to r .
3 ( di s e as ed pig s )
D .L .R . 4 5 8 ;
L R . 37 6.
.

O A .R . . 67 1 ( apple s ;

v C G Anders on
. . . 1 9 1 6, 35 O D . 39 6, 2 7
good s in c ase in sp d an d
o r s v R oge rs 1 9 1
. ,
4 4 O L R . 32
. . D .L .R .
hand moto r t r u

exclus ion plied condition s 0 warrantie s

Zi z i n i a, 1 0 CB . 602 , 2 3 R .C. 4 9 4 ;
W ard v H obb s
.
,
1 87 8 4 ,
App Gas 1 3 ( di se ased pigs sold
. .

“
with all fault s no w arranty will be
94 C H A P TER V . C O N D I TI O NS AN D WA RR AN TI E S .

The p rovi s o th at if the buyer has examined t he go od s ,

’
there shall be no implied condition as regards defect s which
,

such ex amin ation ought to ha ve reve al ed as ori gin ally dr awn

,

“
was confined to c ases where the buyer had no Opportunity
Of ex am ining the good s ( Ch almer s S ale of G o od s 7 t h ed
, ,
.

1910 p
,
. in accord ance with the r ule s stated by Mellor J
in Jones v J ust s up r a Under the p res ent wording it i s not
.

s uf
.
, ,

fi cient th at the buyer shoul d h ave had the opportunity OI

in sp ecting the g oo d s he mu st h ave ex amin ed them
, .

Thorn et t v B eers [1 9 1 9 ] 1 K B 4 8 6
.
,
. .
 C H AP TE R VI .

D E L I VE R Y, A CCE PTAN CE AND PA YME NT.

'

61 . D elivery an d p ayment .
62 Mode an d pl ace of delivery .
f
.

63 Time O delive ry .
f
.

§ 64 D el i v e y of wrong qu antity or
. in i ns t al men
65 . good s to buyer .
66 . an d accept ance .

67 . ac cept .

'

61 . D an d p aymen t .
The Goo ds Act ( On t s 2 ; U K s 62 ) defines d e
. . . . .

the volun tary t rans fer of p oss e ssion

fom on
r
7)

receipt under t he S t at ut e of F r auds ,

s ee

'
The S ale of G oo ds A c t ( On t se 2 7 2 8 ; U K se 27 2 8 )
. .
,
. . . ,

p rov ides :
27 It i s the d uty of the s ell er t o deliver the g oods an d
.

of the buyer to ac cept an d p ay for them in acco rd ance wi th

the term s of the c ontract of s ale
2 8 Unl e ss othe rwi s e agreed delivery Of
.

.
,
the go ods an d
p ayment of the p r i ce ar e concurrent condi tions that i s to ,

sa y the s eller mu st he r eady an d wi lling to gi v e p oss ess i on

of the good s to t he b uyer in exch ange f
,

or the p rice an d t he ,

buyer mus t be re ady an d willing to p ay the pri ce in ex

ch ange for po ss essi on of the good s .

I f A an d " a gree th at the perform ance of thei r r esp ec

. .

ti ve p romises sh all b e si mul t aneou s or at le ast th at each sh all

,

be re ady an d willing to pe rform hi s p romi se at the same time ,

then the p erformance of each p romi se i s condi tion al on thi s

c oncurrence o the con
no t i me
i s fixed for p ayment the buyer mu st b e rea dy to p ay an d t he
,

s ell e r ready to deliver at one an d the s ame time The p romises .

are interdep endent an d condition al upon e ach other so th a t if ,

96 C H AP TER V I DEL I VERY AN D A CCEPTAN C E
.

A f ai l s to d eliver " may not only s ue for d am age s but may

. , .

al so refu s e to p ay .

Ans on Contr act 1 5 t h ed 1 9 2 0 pp 354 5 ; Mo rton v -

L amb 1 7 9 7 7 T R 1 2 5 2 3 R C 5 00 ( pl aintiff
. ,
. .
, ,

, ,
. . in an action
,
. .

for non delivery averred th at he was always re ady an d

-

wi lling to receive the good s where as he ought to h ave ,

averred th at he was always rea dy an d willing to p ay for

the good s ) .

D elive ry an d p aym ent ar e however not concurrent condi , , .

tion s if on the one

,
d the contr act i s for the delive ry of
,

the good s on credit if on the other h and they ar e to be

'

, ,

p aid for on a d ay c irre sp ective of delivery A s to an .

act ion for t h e price l atter c as e s ee chapter 8 8 1 , ,

.

E ven where the r aet p rovide s for deli very on credi t ,

if the buyer b ol v en t or st ate s th at he will not p ay

for the good s ,

need not deliver except upon r ec ei v
ing p ayment .

7 3 L R 8 Ch 2 8 9 ; Re F aulkne r s,
. . .
,

8 4 an d c as e s cited ; see al s o
75 38 D L R ,
. . .
,

7 3 as t o the un p ai d s el ler s li en or ri ght of

’
,

contr act known as a c contr act ( th at i s a ,

s ale of good s at a cover co s t i n sur,

the seller mus t ort of s hip

s cribed

e delivered at
3) p rocure i n
term s current
as des cribed by

L .R . S H
/ L 39 5
. .
,

the bill
th at he

mus t then b e re ady an d wi l l ing to p ay t h e p rice whether

, t he
98 C H A P T ER V I DEL I VE RY AN D A CC EP TAN CE
.

the go od s to a c a rrier in accord ance with s 32 of the S ale of

but i f
.

G ood s Act t he contr act doe s not exp ress ly or

.

impliedly require the seller to send the goods to t he buyer t he ,

s eller need only put the good s in a del iver ab le s t ate an d p er ,

mit the buyer to t ake po ss e ss ion at the pl ace of delivery as

d efined by sub s 1 of s 2 9 The l ast mentioned p rovi si on i s
-
.

t o the s ame e f f
. .

ect as the common l aw rul e Smith v C hance . .

,

1 819 2 B ,
Ald 7 5 3 at p 75 5 ; Wood v T ass ell 1 8 4 4 6 QB
. . , . . , ,
.

2 34 ; H ertle v J enny 1 9 1 5 4 9 N S R 6 2 2 D L R 7 4 2
.
, ,
. . . ,
. . . .

The S ale of Good s Act p rovides ( On t s 2 ; U K s 62 ) . . . . .

”
th at go od s ar e de emed t o b e in a deliver able s t ate when
“

t h ey ar e in s uch a st ate th at the buyer wo ul d un der th e con

-

tr act be boun d t o tak e d elivery of them .

In the United St ates the corre sp onding se ction of t he Uni

f orm S ale s Act h as the following p rovi sion in pl ace of sub s -
.

3 of s 2 9 of the S al e of Good s Act

.

43 Where the good s at the time of sale are in the

.

p o ss e ss ion of a t hird per so n the s eller h as not ful fil led his ,

oblig ation to deliver to t h e b uyer u nl e ss an d until such

third pers on acknowledge s t o the buyer t h at he hold s the
good s on the buyer s beh alf ; but as again st all other s th an
’

the se l ler the buyer sh al l b e regarded as h aving received

delive ry from the time when such third p er s on firs t h as
notice of the sale Nothing in t hi s section however sh all
af f
. , ,

ect the op er ation of the i ss ue or tr an sfer of an y doc u

ment of titl e to good s
A s to the e f f
.

ect of the i ssue an d tran s fer of a document of

t itle to the good s s ee ch apter 4 43f
, fan d as to the e f fect ,
.
,

of the tr an sfer of a document of titl e up on the s eller s l ien or ’

right of stop p age in tran s itu see ch apter 7 75 A s to c i f , ,

. . . .

c ontr acts s ee 61
, .

63. Ti me f
d li
o e v ery.

rega rd s del ivery of good s time i s p ri ma aci e of the

As f
e s s ence of the contr a ct See H artl ey v H ym an s [1 9 2 0 ] 3 K
. . ,
.

B 4 7 5 referred to in ch apter 5
.
, 53 ,
.

The S al e of Good s Act ( On t s 2 9 ; U K s 2 9 ) p ro vide s . . . . .

29 Where un d er the contr act of sal e the s eller

.

i s bound to s end the go o ds to the buyer but no time for

 § 63 TI M E OF DEL I VERY 99

s ending them i s fixed the seller i s bound to send the m ,

withi n a re as on able time .

( 4 ) D em and or tender of delivery may be tre ated as

ine ffectu al unle ss m ade at a re ason able hour Wh at i s a .

re ason able hour i s a que stion of f act .

In the ab s ence of an expre s s provi s ion in a contr act of sale

as to the time of delive ry a p rovi s ion may be implied in s om e

c as es as f
,

, o r in st ance in the c as e of good s which to the know

,

ledge of the seller ar e needed for a cert ain purpo s e at a cer

t ain time If however there i s no expre ss or implied te rm
.
, ,

requiring delivery at a cert ain time the oblig ation of t h e ,

s eller i s to deliver within a re as on able time The que stion .

wh at i s a re as on able ti me depend s up on the actu al exi sting

circum st ance s s o th at the time for delivery may be extended
,

by circumst ance s n ec e ssa rily involving del ay such as a stri ke

except in so f
, ,

ar as the circum st ance s ar e c au s ed o r contributed

to by the seller .

H ick v R aymond [1 8 9 3] A C 2 2 ; Sim s v Midl and

.
,
. . .

Ry Co [1 9 1 3] 1 K B 1 0 3 ; H enry H ope Son s v C an ad a

. .
,
. .

F oundry Co 1 9 1 7 4 0 O L R 338 39 D L R 308

.
, ,
. . .
,
. . . .

”
A contr act for delivery of goo d s at once i s a contr act
for delivery wi thi n a re as on able time . .

R e g v R ogers 1 8 77 3 Q B D 2 8 at p 33 ; P etri e v
. .
, ,
. . .
, . .

R ae 1 9 1 9 4 6 O L E 1 9
, , A s to d am age s for non delive r y
. . . .
-

s ee ch apter 8 83 , .

Contract s for t h e sale of good s frequently require t he,

pe rfo rm ance of act s by a bu y er before the oblig ation of dcliv

ery f all s up on the s eller for ex a mple where the cl ass of good s , , ,

the size or the qu antitie s mu st be s pec i fied by the bu y er In .

such a contr act where the word s as requi red

“ ”
or the like ,

word s do not appe ar th en up on t he p as s ing of a re as on abl e

, ,

time the buyer will h ave lo st hi s right to c all upon the selle r .

to deliver Where the word s as required

.
“
or like word s ,

appe a r then t h e contr a ct doe s not come to an end mere l y by

,

the l ap s e of a re as on able time i t being n eces sa ry tha t the —

s eller s hould h ave given notice to the buyer of hi s intention t o

p ut an end to the contr act in the event of the b uyer s not r e

’

quiring delive ry but even in the ab s ence of such notice t h e

—

l ap s e of ti me may b e so long as to induce t h e cou r t to infe r

’

1 00 C H A P TE R V I DEL I VE RY . AND A CCE P TAN C E

th at it was t he intention of both p artie s to ab andon the con

tr act .

J one s v Gibbon s 1 85 3 8 E x 92 0 as expl ained in P e arl

. , ,
. ,

Mill C o v Ivy T annery Co [1 9 1 9 ] 1 K B 7 8 ; see al so

. . .
, .

S i er i c hs v H ughes 1 9 1 8 4 2 O L R 60 8 4 3 D L R 2 9 7
.
, ,
. . .
, . . . .

I f good s ar e to b e delivered on the buyer s s hip or on ’

‘
c ar ,
the seller s obli gation to deliver doe s not ari se until the
’

buyer h as p rovided the ship or the c ar an d it may b e exp re ssly ,

-
o r impliedly ag reed th at notice s ha ll be given by the b uy er

to the seller th at the ship or the c ar i s re ady to receive the

good s .

Armit a ge v In sole 1 8 5 0 1 4 Q B 7 2 8 ; St anton v

.
, , . . .

Au stin 1 8 7 2 L R 7 C P 65 1 ; Stu art v Cl arke 1 9 1 7 1 1

, ,
. . . . .
, ,

Alt a L R 5 5 1 36D L R 2 5 4
. . .
, . . . .

64 . D eli very o f
w r on g quan t i t y or i n i n st al men t s .

The general rul e i s t h at the seller mus t deliver at one time

the ex act qu antity of good s which he h as contracted to d eliver .

The S ale of Go o ds Act ( On t s 30 ; U K s 30 ) p rovi de s . . . . .

30 Where the s el ler del ivers to the buyer a

.

qu antity of good s le ss th an he contr acted to s ell the buyer ,

may rej ect them but if the buyer accept s the goods so de,

livered he mu st p ay for th em at the contra ct r ate .

( 2 ) Where the s elle rs deliver s to t h e buyer a qu an tity

of good s l a rger th an he contr a cted to sell the buyer may ,

a cc ept t h e goo d s included in the contr act an d rej ect the ,

re st or he may rej ect the whole I f the b uyer accept s the

,
.

whole of th e good s s o delivered he mu s t p ay for them at

the contr act rate .

( 3) Where the s eller deliver s to t h e buyer the good s he

contracted t o s ell mixed with good s of a di f f erent d esc ri p
tion not included in the contr act the buyer may accept the ,

goo d s whi ch are in accord ance with the contract an d rej ect
the re st or he may rej ect t he whole
, .

( 4 ) The provi s ion s of thi s s ection ar e subj ect to an v

u sag e of trade s peci al agreement or course of de aling be
,

tween the p a rtie s .

In s ub s 4 of s 30 of
'

-
.the M anitob a s t atute the word s or
.
,
”
i n a n y p art icul a r trade or bu s ine s s a re a dded .
1 02 C H A PT ER V I DE L I VERY AN D A CC E P TAN CE
.

In the United St ate s the c orre s p onding s e cti on of the

Uniform S ale s Act c ont ain s th e foll owin g provi s i on in the
pl ace of sub s 1 of s 30 of the S ale of Go od s Act
-
. .

'

Where the s eller deliver s t o the buyer a

44 .
qu antity of go od s le ss th an he c ontr a cted t o s ell the ,

bu yer m ay rej e ct th em but if the buyer a cc ept s or r e ,

t ain s the go od s s o delivered kn owin g th at the s ell er i s ,

.

n ot going t o perform the c ontr a ct in full he mu st p ay

'
,

for them at the c ontr act r ate If h owever , the buyer .

,

has u s e d or di s p o s ed of the g o od s delivered before he

know s th at the s eller i s n ot g om g t o perform hi s c on
tr act in full the buyer s h all n ot b e l i able for m ore th an
,

the f air v alue t o him of the go od s s o receive d .

The S al eof
Go od s Act ( On t s 31 ; U K s 31 ) provide s . . . . .

31 Unle s s otherwi s e agree d the buyer of go od s

.

i s n ot b ound t o a ccept delivery there of

,

by in s t al ment s .

( 2 ) When there i s a c ontr a ct for the s a le o f

'

go o d s
t o be de l ivered by s t ated in st alment s whi ch ar e t o b e ,

s ep a r a tely p aid for an d the s elle r m ake s defe ctive de

,

liverie s in re s pe ct of one or more in s t alment s [or f ail s ,

t o deliver one or m ore in s t alment s ] or the buyer ne g ,

lec t s o r refu s e s t o t a ke delivery of or p ay for one or

'

more in s t alment s it i s a que sti on in e ach c as e depend

,

in g on the term s of the contr act an d the circum s t ance s

of the c as e whether the bre a ch of c ontr act i s a repudi a
tion of the whole contr act or whether it i s a s ever able ,

br each givin g ri s e t o a cl aim for c omp en s ation but not

to a ri ght t o t r e at the wh ole c ontr act as repudi ate d
. .

Th e rule s t ated in s ub s 1 foll ow s from the rule s t ated -

.
’

in s 30 of the S ale o E Good s Act n amely th at where the

.
, ,

s eller deliver s t o t h e buyer a qu antity of go od s le s s th an

he c ontr acted t o s ell the buyer may rej ect them A s t o the
,
.

gener al principle s ee R euter v S al a 1 8 7 9 4 C P D 2 39 ;

,
.
, ,
. . .

H onek v Muller 1 8 8 1 7 Q E D 9 2
.
,
In the l atter c as e at
,
. . . .
,

p 9 9 B r a mwell L J s aid
.
,
. .

Supp o s e a man order s a s uit of cl othe s the pric e ,

bein g £7 -
for the c o at £2 for the trou s er s an d , ,

£1 for th e w ai s tc o at c an he b e m ade t o t ake the c o at,

 § 64 DEL I VERY OF W RO NG QUANTI T Y . 1 03

only whether they were all t o be delivere d to gether or

, ,

the trou s ers an d w ai s tc o at fir s t "

In a c as e in which the s elle r a greed t o deliver go od s
in L ondon ex a cert ain s hip t o the buyer s cr aft along s ide
, ,
’
,

it was held th at t h e p arcel of good s t o b e delivere d w as

indivi s ible an d th at the buyer w as entitle d t o delivery of
,

the wh ole p arcel be fore the s hip left the p ort to deliver
go od s el s e wher e A s p art only of the go od s were delivered
.
,

t h e buyer s ri ght s were tho s e defined by s 30 of the S ale

’
.

of Good s Act .

B ehrend V P roduce B roker s Co [ 1 9 2 0 ] 3 K B 5 30

. .
, . .

Th e e ditor s of B enj amin S ale 5 t h e d 1 9 0 6 p 72 3 r e:

, ,
.
, .
,

mark th at s 31 s u b s 2 i s a s triking in s t ance of imperfe ct

. ,
-
.

c odific a tion Inter ali a they s ugge s t th at i t doe s n ot c over

.
,

the c as e where the s eller omi t s t o m ake an y d elivery at al l .

“
T o meet thi s p articul ar critici sm the w ord s or f ail s to ,
”
deliver one or more in st alment s which do not appe ar i n ,

the ori gin al st atut e were in serte d in the Onta ri o s tatute

,
.

If there i s a t ot al f ailure of pe rform ance by one p arty

t o a c ontr act the u su al re s ult i s th at the other p arty h as
,

the ri ght t o con s ider him s elf di s ch ar ged from the obli g a
tion t o perform on h i s p art an d the s am e re s ult u s u ally fol
,

l ow s if there i s a p arti al but s ub s t an t i al f ailure to perform

, ,

an indivi s ible c ontr a ct If h ow ever a c ontr act provide s

.
, ,

for delivery of go od s in s t ated in s t alment s which ar e t o be

s ep ar ately p a id for it i s more di f f
,

,
icult t o s ay wh at de gre e
of f ailure t o perform by one p arty will give t o the other
p arty the ri ght t o c on s ider him s elf di s ch arge d .

In the le ading c as e of Mer s ey Steel an d Iron C o v N ay . .

l or 1 8 8 4 9 App Gas 4 34 at pp 4 38 4 39 2 3 R C 5 04 at pp
, , . .
,
.
, ,
. .
,
.

5 1 6 5 1 7 the E arl of S e lb orne L O s aid

, , ,
. .

I am c o n tent to t ake the rule as s t ated by L ord C ol

e r i d ge in F reeth v B urr 1 8 7 4 L R 9 C P 2 0 8 which
. , ,
. . . . ,

i s in s ub s t anc e as I under s t and it th at you mu s t lo ok

, ,

at the a ctu a l circum s t anc es o f the c as e in orde r t o s e e

whether the one p arty to the c ontr act i s relieved from

i t s future perform ance by the c onduct of the other ;
you mu s t ex amine wh at th at c onduct i s s o as to s e e ,

wh ether it amount s t o a renunci ati on to an ab s olute ,

1 04 C H A PT ER V I DE L I VERY AN D A CC E PT AN C E
.
‘

refu s al t o perform the c ontr a ct s uch as w ould amo unt ,

to a re s ci ss i on i f he h ad the p owe r t o re s cind an d ,

whether the other p arty may a ccept it as a re as on for

n ot performin g h i s p a rt .

The d octrine of repudi ation mu s t of c our s e b e a pplied ,

in a j u s t an d re as on able m anner A di s pute as t o one or .

s ever a l minor provi s i on s in an el ab or ate c ontr a ct or a r e

f u sal t o a c t up on wh a t i s s ub s equently held to b e the prop er

interpret ati on of s uch provi s ion s s h ould n ot as a rule be , ,

deeme d to am ount to repudi ati on but a deliber ate bre a ch ,

of a s ingle provi s i on may in s p eci al circu ms t ance s an d

, ,

p articul arly if the provi s i on be im p ort ant amount t o a r e ,

p u d i a t i o n of the wh ole c ontr a ct It i s al s o to be remembere d

th at unl e s s a di f f
.

erent intenti on ap pe ar s from the term s of

a c ontr a ct ,
s tipul ati on s as to the time of p a yment ar e n ot

deemed t o be of the e s s ence of a c ontr a ct of s ale .

In re R ubel etc C o an d V o s [1 9 1 7 ] 1 K B 31 5 at
,
. .
,
.
,

.p 32 2 ; F ayzu v S aunder s [1 9 1 9 ] 2 K B 5 8 1 ; s ee al s o
.
,
.

D omini on R a di ator C o v Ste el C o 1 9 1 8 4 3 O L R 35 6;

. . .
, ,
. . .

as to d am a ge s for non delivery s e e ch apter -

83 , .

In Hal s bur y s L aw s of E ngl and v ol 2 5 p 2 1 8 p ar 377

’
,
.
,
.
, .
,

it i s s t ated
The c ontr a ct s o f a r as it a pplie s t o an y p articul ar
,

in s t alment of go od s i s di s ch ar ged where def ault h as

,

been m ade in the delivery or accept anc e of the in st al

ment ; Acc ording ly the s eller c annot a fterw ard s
cl aim to deliver the in s t alment nor c an the buyer de ,

m and it .

Thi s s t atement i s qu alified by the foll owin g

Th e f act th at the p artie s h ave s ilently omitted to
enforc e an d to require the delivery of an y in s t alment
of the good s or h ave by mutu al c on s ent forb orne i t s
,

delivery at the c ontr a ct time i s relev ant but not c on , ,

.

c lu s i v e t o s he w a mutu al a greement t o re s cind the c on

tr a ct s o f
~

ar a s it applie s t o the in s t alment undelivered .

Th e qu alifyin g s t atement ab ove qu oted s o f

,

ar as it r e

l ate s to the e f f
,

ect of s ilent omi ssi on t o enforc e an d require

delivery was di s approved as n ot bein g s upp orted by the
“

, ,

authoritie s by the maj ority of the c ourt in D oner v V Ves t

,
.
1 06 C H A PT ER V I DE L I VERY A N D A CC EP TAN C E
.
“

tran smi ss ion to the buyer i s p r i ma aci e deemed to b e , f

a delivery of the good s t o t h e buyer .

( 2 ) Unle s s otherwi s e auth orized by the buyer the ,

s eller mus t m a ke s uch c ontr a ct with the c ommon c ar

rier on beh alf of the buyer as may b e re as on able h av ,

in g re g ard t o the n ature of the g o od s an d the other

circum s t ance s of t h e c as e If the s eller o mit s to do s o
.
,

an d the go od s ar e l o s t or d am a ge d in c our s e of tr an s it ,

the buyer may de cline t o tre at the delivery t o the

c arrier as a delivery t o him s elf or may h old the
s eller re s p on s ible in d am a ge s .

The w ord comm on in s erted b efore the w ord c arrie r

in s ub ss 1 an d 2 in the Ont ari o s t atute doe s n ot appe ar in
-
. .

the s t atute as en acted in the Unite d Kingdom or in the oth

e r province s of Can ad a .

In D unl op v L ambert 1 839 6 Cl

.
,
F 60 3 at pp 62 0 1 ,
. .
,
.
-
,

L ord C ottenh am s aid

It i s no doubt true as a gener al rule th at the delivery
by the c on si gnor t o the ) c arrier i s delivery t o the con
s i gne e an d th a t the ri s k i s a fter s uch delivery the ri s k
,

of the c on s i gnee Th at i s s o if with out de s i gn atin g the

.
,

p arti cul ar c arrier the c on s ig nee dire ct s th at the good s

,

s h all b e s ent by the ordin ary c onvey ance And .

it i s s till more s trongly s o if the goods ar e s ent by a

c arr i er s pe ci ally p ointe d out by t h e c on s i gne e him s elf
.
,

for s uch c ar r ier then be c o me s h i s s p e ci al a gen

B ut though the authoritie s all e s t abli s h the gener al
inference I h ave s t ate d yet the gener al inference i s ,

c ap able of bein g v aried by the circ um s t ance s of an y s p e

c i al arr an ge ment betwe en the p artie s or of an y p artie ,

ul ar mode of de alin g b etween t hem .

See al s o C alcutt a C o v D eM at t o s 1 8 63 32 L J QB 32 2
. .
'
, ,
. . .
,

at p s 32 8 quote d in note i n Ch al mer s S ale of Good s 7 t h ed

, , , .

1 9 1 0 pp 2 1 3 4 ; G ra h am v L aird
-
20 O L R 1 1
. A s to . . .

the p ass in g of the p rop erty an d as to re s erv ation o f

. . .
, ,

the
'

ri ght of d i s p os al s e e ch apter 3
,
37 an d 38 ; as to ,

the ri s k of l o s s s e e ch apter 1 § 1 5
, ,
.

A c ar r ier though he i s pre s umed to receive the goods

,

in the ch ar a cter of a gent for the c on s ig nee i s n ot nece s sar ,

 § 65 . S E N D I NG OF G O O D S TO B U YER . 1 07

ily h i s a gent for the purp o s e of actu al r e ceipt s till le s s h i s ,

a gent t o a ccept the go od s within the St atute of F r aud s ; ,

but the c on s i gnee may s o ac t as t o c on s titute the c arrier h i s

agent for b oth the s e purpo s e s .

B u s hel v Wheeler 1 84 4 1 5 QB 4 4 2 2 3 R C 2 1 3 ;
.
, ,
.
,
. .

Meredith v Meigh 1 8 5 3 2 E . B 364 2 3 R C 2 1 7 ;

, ,
. . ,
. .

a s t o a ccept anc e an d a ctu al receipt s e e ch apter 2 § 26 , ,

.

In the Unite d Kingdom the c orre s p ondin g s ecti on fur

ther provide s
32 Unle s s otherwi s e ag reed where go od s ar e
.
,

s ent by the s eller t o the buyer by a route involvin g s e a

tr an si t under circum st ance s in which it i s u s u al t o i n

,
'

s ure the s eller mu st give s uch n o t i c e t o the buyer as

,

may en a ble him to in s ure them durin g their s e a tr a n

si t an d
,
if the s eller f ail s t o d o s o the g ood s s h all be
, ,

deemed t o be at h i s ri s k du rin g s uch s e a tr an sit .

In the province s other th an Ont ari o thi s su b s e cti on i s -

“ ”
ret ained In M anitob a the w ord s l ake or river ar e i n
.

“ ”
se r t e d after the w ord sea .

The s ecti o n i s di s cu s se d an d an alyze d in Wim ble S on s -

,

C o v R o s enbe r g [1 9 1 3] 3 K B 7 4 3 in which it was held

. .
,
.
, ,

by a m aj ority of t he court th at s ub s 3 applie s to an ,

-
.

f o b c ontr act an d by one j udge th at if before the good s

. . . , , ,

ar e s hipped the buyer h a s all inform ati on nece s s ary t o e n

a ble him to in s ure the s eller i s not obli ged t o give n otice
,

t o the buyer of the s hipment of the go od s on a p articul ar

s hip . Se e al s o N orthern Steel an d Hardw ar e C o v B att . .
,

1 9 1 7 33 Time s L R 5 1 6
,
. . .

S ub s 3 doe s not apply to a c i f c ontr a ct entere d into

-
. . . .
‘

in time of p e ace in as much as t h e contr act it s elf provi de s

,

for al l the in s ur ance th at i s c ontempl ated or u s ual at the

time when it i s m ade an d the s ub s e cti on doe s n ot imp o s e
,
-

on the s eller an y ne w obli g ati on t o give notice to the buye r

s o a s to en able him t o in s ure a g ain s t w ar ri s k s i f af ter the , ,

d ate of the c ontr a ct w ar be c o me s imm i nen t , .

L aw B on ar v B riti s h Americ an Tob acc o C o

. .

[1 9 1 6] 2 K B 60 5 ; as t o c i f c ontr act s s ee 61
. . . .
, .

Th e S ale of Good s Act ( On t s 33; U K s 33) provi de s . . . . .

33 Where the s eller of go od s a gree s t o deli ver them

.
1 08 C H A P T ER V I DE L I VE RY AN D A CC E PTAN C E
.

at hi s ri s k at a pl ac e other th an th at where they

o wn

ar e when s ol d the buyer mu s t neverthele ss unle s s

, , ,

otherwi s e a gre ed t a ke an y ri s k of deterior ati on in the

,

good s nece s s arily incident t o the c our s e of tr an s it .

T o thi s s t atutory rule i s added in 2 5 Hal sbur y L aw s of ,

E ng l and p 2 2 3 the s t atement th at the s elle r mu s t b e ar the

,
.
,

ri s k of an y e xtr a ordin ary or unu s u al deteri or ati on during

tr an s it .

In the c as e of p e r i s h a ble go od s eve n if the s eller h as ,

not a gree d to deliver the mat h i s own ri s k it i s s ai d th at ,

he i s de emed t o t ake the r l sk of the good s n ot arrivin g in

the ordin ar y c our s e of tr an s it an d of their n ot rem ainin g
in a merch ant able c onditi on for a re as on able ti me after ar
riv al .

See 2 5 Hal s bur y L aw s of E ngl and p 2 2 4 ci tin g

, , .
,

B eer v W alker 1 8 7 7 4 6 L J QB 677 ; but cf M ayhe w

.
, ,
. . . .

v Scott 1 9 1 5 8 Alt a L R 66 2 1 D L R 5 4
.
, ,
. . .
,
. . . .

As t o ri s k of lo s s gener ally s ee ch apter 1 § 5 , , .

66. I n sp ec t i o n an d acc e p t an c e .

In the c as e of a c ontr a ct for s ale by s ample there i s an

implie d c onditi on th at the buyer s h all h ave a re as o n abl e o p
p o r t u n i t y of c omp arin g the bulk with the s ample See ch ap .

ter 5 5 6
, .

Where go od s ar e b ou ght by de s cripti on from a s eller wh o ,

de al s in good s of th at de s cription ( whether he b e the man

uf ac t u r e r or n ot ) there i s an implied c onditi on th at the
,

g o od s s h all b e of merch ant able qu ality ; provi de d th at if the

b uyer h as ex a mined the g o od s there i s n o implie d c ondition ,

as re g ard s defe ct s whi ch such ex ami n ati on ou ght to h ave

reve aled S e e ch apter 5 § 5 7
. ,
.

The S ale of Go od s Act ( On t s 34 ; U K s 34 ) provide s . . . . .

34 . Where go od s ar e delivered t o the buye r

whi ch he h as n ot previ ou sly ex amined he i s not de em
”

e d t o h ave a ccept ed them u nl e ss an d until he h as h ad a

re as on able opp ortunity of ex ami nin g them for the pur

p o se o f as cert ainin g whether they ar e in c onformity

with the c ontr a ct .

( 2 ) Unle s s oth erwi s e a greed when the s eller tender s ,

delive ry of go od s t o the buyer he i s b ound on reque s t , , ,

 110 C H A PT ER V I DE L I VE RY AN D A CCE P TAN C E
.

P ri s m f
the good s s hould b e ex amined at the pl ace
ac i e

a n d time of delivery but the c ontr a ct may expre s s ly or 1 m

,

p l i e d l y provide th at the time of in s p e ction s h all b e s u b se

quent t o delivery an d th at the p l a ce of in s pe ction s h all b e
d if f erent from th at of delivery The obli g ation of the s eller
i s t o af f
.

ord an ade qu ate opp ortunity of in spe cti on an d th at

of the buyer i s t o av ail him s elf of the opp ortunity .

B enj amin S ale 5 t h ed 1 9 0 6 p 7 5 3 ; P erkin s v B ell

, ,
.
,
. .

[ 1 8 9 3] 1 QB 1 9 3 ; Gr ah am v L aird 1 9 09 2 0 O L R 1 1 ;
. . , ,
. . .

Th ame s C annin g Co v E ck ardt 1 9 1 5 34 O L R 72 2 3

. .
, ,
. . .
,

D L R 8 0 5 ; Merrill v W addell 1 9 2 0 4 7 O L R 5 7 2 5 4
. . . .
, ,
. . .
,

D .L .R 1 8 . .

In the Unite d St ate s the s ecti on of the Uniform S ale s

Act c orre s p onding with s 34 of the S ale of Go od s Act c on
.

t ain s the foll owing a dditi on al p rovi s ion

47 Where g o od s ar e delivere d t o a c arrier by
.

the s eller in acc ord anc e with an order from or a gre e

,

ment with the buyer up on the term s th at the go od s

,

s h all not b e delivere d by the c a rrier t o the b uyer until

he h as p ai d the pri ce whether s uch term s ar e indic a te d

,
“
by m arkin g the go od s with the w ord s c ollect on de
”
livery or otherwi s e the buye r i s n ot enti tled t o ex am
, ,

a mine the go od s before p ayment of the pric e in the ab

s ence of a greement p ermittin g s uch ex amin ati on .

The S ale of Go od s Act ( On t s 35 ; U K s 35 ) provide s . . . . .

35 . Th e buyer i s deeme d t o h a ve a cc epte d the go od s

when he intim ate s t o the s eller th a t he h as a ccepted
them or when the go od s h ave be en deli ve re d to him
,

an d he doe s an y ac t in rel ati on t o the m whi ch i s i n c o n

'

s i s tent with the owner s hip of the s eller or when a fter , ,

the l ap s e of a re as on able time he ret ain s the good s W ith ,

out int i mat in g t o the s eller th at he h as rej e cte d them .

Ac cept ance as defined by thi s s e cti on h as the e fi ec t of

preventin g the buyer from exerci s in g an y rig ht whi ch he
may otherwi s e h ave h a d t o rej e ct the go od s as n ot bein g
in c onformity with the c ontr act an d as alre a dy p ointe d , ,

out the buyer i s as a r ul e n o t deeme d t o h ave acc epted

, , , ,

the go od s unle s s an d un t i l he h as h ad a re as on able opp e r

.
‘

t un i t y of ex ami n i n g t h em .
 § 66 I N S PE CT I O N AN D A CC EP TAN C E .
. 111

As re g ard s the provi s ion o f the S ale of Go od s Act whi c h -

h as repl aced the St atute of F r aud s there i s a ccept a nce ,

when the buyer doe s an y ac t in rel ati on to the goo d s .

which rec ognize s a pre exi s tin g c ontr act of s ale whether -
,

there be an accept anc e in perform ance of the c ontr a ct or

”
n ot See c hapter 2 F o r the purp o s e of the St atut e
of F r aud s an ac t i s re quired an d mere w ord s ar e n ot suf
. ,

fi c i e n t wher eas under s 35 an e xpre s s verb al accept ance

or the mere retention of the good s may be su f f
.
,

icient A g ain .
,

for the former purp o s e an y ac t which re c ognize s a pre e x -

i s tin g c ontr act of s ale i s s u f

-
fici e nt but under s 35 the
w ord s or a c t or c onduct of the buyer mu s t in e f f
.
, ,

e ct expre ss
the willingne s s of the buyer to keep the go od s VVh e r e for .
'

in s t ance a buyer under a c ontr act for s ale of whe at by s am

,

ple h avin g re ceive d a number of s ack s of whe at delivere d

,

at h i s p r e mi s es o p en e d the s a ck s an d ex amin e d their c on

~

tent s to s ee if they were e qu al t o sample but imm edi ately ,

after doin g s o g ave notice t o t h e s eller th at he refu s e d t o

t ake the whe at as not bein g equ al t o s ample it w as held ,

th at there w as evidence of a ccept anc e under the St atute

of F r aud s thou gh n ot an accept ance whi ch w ould preclude
f
,

the defend ant rom rej ectin g the whe at if it w as n ot equ al

to s ample .

P a g e v Morg an 1 8 8 5 1 5 Q B D 2 2 8 ; Abb ott v Wol

.
, ,
. . . .

s ey , [1 8 9 5 ] 2 QB . 9 7.

The S ale of Good s Act ( On t s 1 3 ; U K s 1 1 ) provide s . . . . .

th at where a c ontr act of s ale i s not s ever able an d the buye r ,

h as a c cepted the go od s or p art there of the bre ach of an y

, ,

c ondition t o b e fulfille d by the s eller c an onl y b e tre ate d

as a bre a ch of w a rr anty an d not as a ground for rej e ctin g

the good s an d tre ating the c ontr act as repudi ated u nl e s s ,

there b e a term of the c ontr act expre s s or implied to th at

eff
, ,

ect Thi s provi s ion an d other provi si on s quoted in ch ap

.

ter 5 5 4 m ake it cle ar th at accept ance of the go od s doe s

, ,

not nece s s arily prev en t the buye r from cl aimin g d am a ge s

on the groun d th at the good s ar e not in c onformi ty with
the c ontr act an d the ru l e appe ar s t o h ave been the s ame at
,

c ommon l aw Accept ance of the good s h as h owev er i t s

. . , ,

d ange rs for the buyer Hi s conduct in t akin g an d de alin g

.
112 C H A PTER V I DEL I VERY AN D ACC E PTAN C E
.

'

with the go od s will b e s crutini s ed with s ome c a re an d will

s ometime s h ave the e f
,

fect of e s t opping h i m from s ayin g th at

h i s a ccept a nce i s not an a ccept ance of the go od s as being in
c onformity with the c ontr a ct .

H all am v B ainton 1 9 1 9 4 5 O L R 4 8 3 a t p 4 8 8 4 8
D L R 1 2 0 at p 1 2 3 S C af
. . . . .

firmed s ub n om B ainton
, , , ,

. . .
, . , . .

v H a ll am 1 9 2 0 60 Can S C R 32 5 5 4 D L R 5 37 ;
.
, ,
. . . .
,
. . .

Merrill v W a ddell 1 9 2 0 4 7 O L R 5 72 5 4 D L R 1 8 ;
.
, ,
. . .
,
. . .

cf Morton v Tibb ett 1 8 5 0 1 5 QB 4 2 8 ; Willi s S ale of

. .
, ,
.
,

Go od s pp 8 8 K
,
. .

In the United St ate s the Uniform S ale s Act provide s

4 9 In the ab s ence of e xpre s s or implie d a gre ement
.

of the p artie s a c cept ance o f the good s by the buye r

,

s h all not di s ch a rge the s e ller from li ability i n d am a ge s

or othe r le g al remedy for bre ach of an y promi s e or war

r anty in the c ontr act t o s ell or the s ale B ut if after .
, ,

a ccept ance of the go od s the buyer f a il t o give notic e t o

the s eller of the bre ach o f

,

an y promi s e or w arr anty

within a re as on able time after the buyer kn ow s or ,

ought t o kn ow of s uch bre ach t h e s eller s h all n ot be ,

li able there for .

In the Unite d Kingdom the S ale of Go od s Act provide s

5 9 . In Scotl and where a buyer h as ele cted t o a ccept
good s w hi ch he mi gh t h av e rej ecte d an d to tre at a '
,

bre ach of c ontr act as only givin g ri s e t o a cl aim for d am .

a ge s he may in an a cti on by the s eller for the price be

, , ,

required in the di s creti on of the c ou rt b efor e which the

,

a cti on depend s to c on s i gn or p ay int o c ourt the price

of
,

the go od s or p art there of or t o gi ve other re as on

, ,

a ble s e curity for the due p aym en t there of .

67 . Re flt usa o ac cep t .

The S ale of Go od s Act ( On t s 36; U K s 36) provide s . . . . .

36 Unle s s otherwi s e a greed where good s ar e d e l i v

.

ere d t o the buyer an d he re f

,

u s e s t o ac cept them h avin g ,

the ri ght s o t o do he i s n ot b ound to return them to the

s eller but it i s s u f
,

,
ficient if he intim ate s to the s eller th at
he refu s e s t o accept them .
 C HA P TE R V II .

RI G HTS A GA I NS T THE G O OD S .

P r opri e t ary
remedie s of buyer .
R i ght s of unp ai d s eller .

Seller s lien or ri ght of retenti on

’
.

Stopp age i n tr an si tu .

S ale or pledge b y b uyer .

R e s ale by un p aid s eller

-
.

7 1 . Pr o p ri e t ary re medi e s o f
th e b uyer .
If an agre ement t o s ell g o od s i s broken by the s eller as ,

the pr operty in t h e go od s h as n ot p as s ed t o the b uyer the ,

b uyer h as only p e r s on al reme die s a g ain s t the s eller Se e .

c h apter 8 where the buyer s reme d ie s b y w ay of a cti on for

’

d am age s or a ction for s pe cific p e rf

,

orm ance ar e di s cu ss ed .

In th e c as e of a s al e however if the s eller bre ak s h i s en

, ,
.

g a ge-ment t o deliver the g o od s then as the prop erty in the , ,

g ood s h as p ass e d to the buyer the buyer h as not only per ,

s on al re medie s a g ain s t the s eller but h as al s o the u s u al ,

propriet ary remedi e s in re s pe ct of the g ood s them s elve s ,

s uch as the a ction s for c onver s i on an d detinue .

Se e 2 5 Hal sbur y L aws of E ngl and p 1 1 8 referrin g

'
, ,
.
, ,

as t o detinue t o L angton V Hi ggin s 1 85 9 4 H

,
N .
, ,
. .

4 02 an d as t o c onver s i on t o Chinery V V i all 1 8 60 5

, , ,
.
, ,

H . N 2 88 ; cf H ollin s V F owler 1 875 L R 7 H L

. . . , ,
. . . .

7 5 7 2 R C 4 1 0 ; C on s olid ated C o V Curti s [ 1 89 2 ] 1 Q

,
. . . .
,
.

B 4 9 5 2 5 R C 1 61 ; s e e al s o title Trover an d D etinue

2 7 Hal sbu r y L aw s of E ngl and pp 8 8 7 f f; M c Gr e gor V .
. ,
. .
,

, . .
,

. Wh alen 1 9 1 4 31 O L R 5 4 3 2 0 D L R 4 89
, ,
. . . ,
. . . .

In the United St ate s the Uniform S ale s Act provide s

66. Where the property in the go o d s h as p ass ed t o
the buyer an d the s eller wron gfully ne gl ect s or re fus e s

t o deli ver the go od s the buyer may m aint ain an y a cti on

,

all owe d by l aw t o the owner of go od s of s imil ar kind

when wrongfully c onverte d or withheld .

 § 72. R I G H T S OF UN PAI D S ELLER . 115

72 . R i ght s o fp un ai d s ell er .

The s eller s per s o n al reme die s ag ain s t the buyer by w ay

’

of a cti on for the price of the good s or for d am a ge s for non

acc ept anc e ar e di s cu ss ed in ch apter 8 An unp aid s eller
.

may al so h ave cert ain right s i n r eap ag ains t t he good s —

them s elve s ri ght s which ar e of s pe ci al v alue i n the c as e

—

of the buyer s in s olvency or in ability t o p ay the price or

’

d am a ge s
.

The S ale of Go od s Act ( On t s 38 ; U K s 38 ) pr ovide s

.
. . . . .

“
38
. The s eller of go od s i s deeme d t o be an un
”
p aid s e l l er within the me aning of this Act
( a ) when the wh ole of the price h as n ot been p aid
or tendere d ;
( b ) when a bill of exch ange or other n egoti abl e i n
s tr u ment h as been receive d as conditi on al p ay

ment an d the c onditi on on which it w as receive d

,

h as n ot been fulfill e d by re as on of the di s honour

of the in strument or otherwi s e .

( 2 ) In thi s p art of thi s Act the term s e l ler in

elude s an y per s on wh o i s in the p o s iti on of a s eller as ,

for in s t ance an a gent of the s eller to whom t h e bill of

,

l adin g h as been endor s ed or a c on si gnor or ag ent wh o

'
,

h as him s elf p ai d o r i s directly re s p on s ible for the price .

Thi s p art of the s t atute include s s s 38 t o 4 7 . .

In the United St ate s the c orre s p ondin g s e cti on ( 5 5 2 )

of the Uniform S ale s Act i s to the s ame e f f
.

e ct except th at ,

cl au s e ( b ) re ad s as foll ow s
( b ) When a bill of e xch ange or other ne g o ti able
in strument h as b e en re ceive d as conditi on al p ayment ,

an d the c onditi on on which it w as re ceived h as b een

broken by re as on of the di sh on or of the i n s trument ,

the in s olvency of the buyer or otherwis e .

If t h e prop erty in the g o ods w hi ch ar e the s ubj e ct o f

,

a ~

c ontr act of s ale h as p ass e d t o the buyer the unp aid s elle r ,

may h ave a lien or ri ght of s topp a ge in tr an s itu an d a ri ght

of r e s ale The s e ar e ri ght s c onferred b y l aw i n cert ain
-
.
,

circum st ance s up on the s eller in re s pe ct of g ood s of which

f
,

he h as ce as e d t o b e t h e own er The v ali di ty o the title

.

whi ch he purp ort s t o give t o a third p arty up on the re s ale

 H A P TE R
’

116 C VII . R I G HT S A G A I N S T G oo D s .

of the go od s will as a rul e depend up on hi s ri ght t o r e s ell

, ,
-
,

but on the principle of e s t oppel di s cu ss ed in ch apter 3 44

f fan d in the c ase s mentione d in thi s ch apter the s eller in
, ,

., ,

p o ss e s s i on of g o od s may in s ome circum s t ance s c onfer a

go o d title up on a third per s on whether or n ot the s eller in ,

r e s ellin g i s a cti n g in b re ach of h i s c ontr a ct with the ori g

-
,

i n al buyer .

If the property in t h e go od s h as not p as s e d to th e buyer ,

t h e s eller c annot h a ve a lien be c au s e the go od s ar e h i s own

, ,

but he c an withhold or s t o p delivery an d r e s ell When h e ,

-
. .

withh old s or s top s delivery or r e s ell s he doe s s o as owne r -

of the go od s an d h i s owner s hi p i s su f
, ,

, ficient w arr ant for

h i s acti on as re g ard s the go od s an d an y third p arty t o wh om
he s ell s notwith st andin g th at h i s a c t i on i s in bre ach of hi s
,

c ontr a ct with the ori gin al buyer In order h ow ever th at .

, ,

h i s a cti on m ay b e j u s tifie d as re g ard s the ori gin al buyer ,

t h e circu ms t ance s mu s t be s uch th at if the property h ad ,

p as s ed he w ould h ave h ad a lien or a ri ght to s t op d elivery

, ,

an d r e s ell
-
. In other word s the s eller s rig ht t o withh ol d ’

or s top delivery of hi s own go o d s ar e as re g ard s the ori g ,

in al b uyer c o exten s ive with hi s lien up on or ri ght o f

,
-
,
,

s t oppin g delivery of go od s which h ave b ec ome the property

,

of the buyer .

Th e S ale of Good s Act ( On t s 39 U K s 39 ) provi de s . . . . .

39 . S u b j e ct t o the pr ovi s i on of thi s Act an d o f

an y s t atute in th at b e h alf n otwith s t anding th at th e
,

property in the good s may h ave p as s e d t o the buyer ,

he unp aid s eller of good s as s uch h as by i mplic ati on

, ,

of l aw
( a ) a li en on the g o od s or ri ght t o ret ain t hem for th e
price whil e he i s in p o ss e s s i on of them ;
( b ) in c as e of the in s olvency of the buyer a ri ght of ,

s t oppin g the good s in tr an s itu after he h as p art

e d with the p o ss e ss i on o f them ;

( c ) a rig ht of r e s ale as limited by thi s Act ;
-

( 2 ) Where the property in good s h as not p ass e d t o

the buyer th e unp aid s eller h as in a dditi on t ohi s othe r
, ,

r emedie s a ri ght of w ithh oldin g delivery s imi l ar t o an d

,

c c exten s ive w ith the ri ght s of li en an d s topp a ge

-
in
tr an situ wh e re th e pr operty h as p ass ed t o the buyer .
118 C H A P T ER V I I R I G H T S AGAI N S T G OO D S
. .

The S ale o fGo od

Act ( On t s 4 0 ; U K s 4 1 ) provide s
s . . . . .

40 . Subj ect t o the provi s i on s of thi s Act the ,

unp aid s eller of go od s wh o i s in p o ss e ss i on of them i s

e n t itled t o ret ain p o s s e s s ion of them until p ayment or
tender of the price in the foll owin g c as e s n amely : ,

( a ) where the good s h a ve be en s old with out an y

s tipul ati on a s t o credit ;

( b ) where the good s h a ve b e en s old on credit but the

term of cre dit h as expired ;
( c ) where the buyer b ec ome s in s olvent .

( 2 ) Th e s eller may exerci s e h i s ri ght of lien n o t wi t h

s t anding th a t he i s i n p o ss e ss i on of go od s as a gent or

b ailee for the buyer .

Sub s 1 expre s s e s in an other form the principle s t ate d

-
.

i n s 2 8 of the S ale of Good s Act n amely th at unle ss it i s

.
, ,

o th e rwi s e agreed delivery of the go od s an d p ayment of the

,

pri ce ar e c oncurrent c onditi on s If the c ontr act i s for the .

s ale of go od s on cre dit the buyer i s as a rule entitle d t o

,

delivery b efore p ayment but n ot in the c as e. of hi s in s ol

,
“

v eney . Se e ch apter 6 § 61 , .

The S ale of Go od s Act ( On t . s 2 ; UK s 6 2 ) provide s . . . .

A p er s on s h all b e dee me d t o b e in s olvent within the

me aning of thi s A c t who either h as ce as e d to p ay h i s
‘

debt s in the ordin ary c our s e of b u sine ss or c annot p ay

hi s de b t s as they b e c o me d u e .

In the Unite d Kingdom the followin g w ord s ar e adde d

whether he h as c o mmi tt ed an ac t of b ankrup t cy o r not
a n d whether he h as be c ome a notour b ankrupt or n o t
f
.

Sub s 2 as ori gin all y d r o t ed by Ch almer s was c onfined

-
.

t o the c as e where the buyer wa s i n s o l vent in a cc ord ance ,

with the l aw prev ailin g pri or t o the s t atute At c omm on .

law the lien was not exerci s able after an attornmen t by the
s eller t o the buyer if the buyer W as merely i n d e f
aul t b ein g
‘

s ol v ent .

Cu sac k V R o b in s on 1 8 61 1 B
. S 2 9 9 at p 30 8 ;
, , . .
, .

Grice v R ich ard s on 1 8 7 7 3 App Cas 31 9 ; Ch almer s

. , ,
. .
,

S ale of Go od s 7 t h e d 1 9 1 0 pp 1 0 1 1 04 ; 2 5 Hal sbur y

,
.
,
,
.
, ,

L aw s of E ngl and p 2 4 3 n ote Willi s S ale of

fA s t o the p o s sible e ff
.

Go od s pp 9 4 f
, , ,

,
. . ect of the am e nd
 7 3. L I E N OR R I G H T OF (
R E T E NTI O N . 119

ment up on the l aw with r e g ard t o a ctu al re ceipt

un der the St atut e of F r aud s s ee ch apter 2 § 2 6 , , .

The S ale of Good s Act ( On t s 4 1 ; U K s 4 2 ) pro vi de s . . . . .

4 1 . Where an unp aid s ell er h as m ade p art deli v ery

of the go od s he may exerci s e hi s ri ght of lien or r e ten
ti on on the rem ainder unle ss s uch p a rt delivery h as been
m ade under s uch circum s t ance s a s to s ho w an agree:
me nt t o w aive the li en or ri ght of retenti on .
_

In Kemp V F alk 1 8 8 2 7 App Gas 5 73 at p 5 8 6 2 3 R C

. , ,
. .
,
.
, . .

39 9 at p 4 0 4 L ord B l a ckbu rn after referrin g t o D ixon V

, .
, , .
'

Y ate s 1 8 33 5 B
, ,
A d 31 3 2 3 R C 38 5 said :
. .
,
. .
,

The rule I h ad alw ay s u n d er st ood from th at tim e ,

down t o the pre s ent t o be t h at t h e delivery of a p art

,

may be a delivery of the whole i f thi s i s s o intended ,

but th at it i s not s uch a delivery unle s s it i s intended ,

an d I r ather think th at the onu s i s up on th o s e wh o say

th at it was s o intended .

The S al e of Goods Act ( On t s 4 2 ; U K s 4 3) provi d e s . . . . .

"

42 . The un paid seller of go od s l o s e s h i s lien or

ri ght of retenti on there on
( a ) when he d el iver s the g ood s t o a c ommon c ar r ie r
or other b aile e for the pur p o s e of tr an s mi ss i on

to the b uyer with out re s erv i n g the ri ght of d i s ,

p o s al of the goo ds ;
( b ) when the buyer or h i s a gent l awfully obt ain s
p o ss e ssi on of the good s ;
( c ) by w aiver th er e of .

( 2 ) The unp aid s eller of go od s h avin g a lien o r r i ght

of retenti on there on doe s n ot l o s e h i s lien or r i ght o f
,

retenti on by re as on only th at he h as obt ained j udgment

for the price of t h e go od s .

A s to re s erv ati on of the ri ght of di s po s al s e e ch apter 3 , ,

38 .

7 4 . S t op p age i n t ran si t u .
A lien depend s up on p o s s e ss ion an d may be as s erted i f
the b uyer i s in def ault th ough s olvent On t h e other h an d
,
.

a rig ht of s topp a ge in tr an s itu c an ar i s e o nl y after the s ell e r

h as p arted with p oss e s s i on an d can b e exerci s ed only if t h e

buyer i s in s olvent The hi story of t h e ri ght of s topp a ge in
.
1 20 C H A P T ER vn . RI G HT S AGAI N S T G OO D S .

tr an s itu an d the e xtent of t he ri ght it s elf ar e fully di s cu s s ed

in the j udgment s in B o oth Ste a m ship C o v C argo F leet . .

Iron C o [1 9 1 6] 2 K B 5 7 0 S c r u t t on J at p 5 9 7 s ai d :
. . . .
, .
,

The ri ght of s t opp a ge in tr an s itu c ame int o the E n g

li s h l aw in the s e venteenth century from the cu s tom of
merch ant s b oth E ngli s h an d forei gn a cu stom there —

fore which had grown up with n o s pe ci al ref

, ,

,
erence or
c ongruity t o the E n gli sh l aw A s it en able d an unp aid .

vendor who s e purch as er was in s olvent t o e xe r .

ci s e s ome c ontr o l over g ood s in whi ch he h ad n o pr o

perty an d of which he h ad n o p o s s e ss i on while in the ,

h and s of a s hip owner with wh om he h ad no c ontr a ct ,

an d t o pre vent th at s hip owner from p er formin g a con

tr a ct t o which the unp aid vendor was n o p arty it was

obvi ou s there w ould b e c on s ider able di f
,

ficulty in fittin g
in thi s intern ati on al u s age an d the n ati on al l aw A s .

L ord Abinger s ay s in the well k nown j ud gment in Gib

,
-

s o n v C arruther s 1 8 4 1
. 8 M ,
W 32 1 at pp 338 339
, . .
,
.
, ,

“
34 0,
In C ourt s of E quity it h as b een a r e ceive d opin
i on th at it was founde d on s o me principle of c omm on
l aw. In C ourt s of L aw it i s j u s t as much the pr a ctice
t o c all it a principle of equity whi ch the c ommon l aw ,

h as adopte d M any un sati s f a ctory an d i n c o n si s t

ent a ttempt s h ave been m ade to reduce it t o s ome an
al o gy with the principle s which govern the l aw o f c on
tr act as i t prev ail s in thi s c ountry b etween vendor an d
,
“
vende e And a g ain he refer s t o the re as on
, ,

in g an d dict a b y whi ch it h as been attempted n ot very ,

s uc ce s s fully t o develop the princip l e an d t o m ake it

, ,

c onform able in appe ar ance an d dre ss with the

”
f a mily of E ngli s h l aw int o w hi ch it h as b e e n adopted .

The ri ght of s t opp a ge in tr an s itu i s th e ri ght of the

unp aid s eller on di s c overy of the in s olvency of the buyer
, ,

an d notwith s t anding th at he h as m a de c on s tructive dcliv

e r y of the go od s t o the buyer t o re s ume p o s s e s s i on of them

.

if
, ,

he c an whil e they ar e in c our s e of tr an s it an d before they

,

c ome into the a ctu al p o s s e ss i on of the buyer The S al e of .

G ood s Act c ont ain s v ari ou s provi s ion s as to the dur ati on of
t h e tr an s it as t o the m ann e r in which the s eller may e xe r
,
~
1 22 C H A P T ER V I I R I G H T S AGAI N S T G OO D S
. .

'

or hi s gent in th at b eh alf t ake s delivery of them from

a

s uch c ommon c ar r i er or other b ailee .

( 2 ) If the b uyer or h i s a gent in th at beh alf obt ain s ,

delivery of the g ood s b ef o re their arriv al at the ap

p ointed d e s tin ati on the tr an s it i s at an end
,
.

3) If after the arriv al of the go od s at the app ointed

,

de s tin ation the c omm on c arrier or other b ailee ao

,

knowle dge s t o the buye r or hi s a gent th at he h old s the

good s on hi s beh alf an d c ontinue s in p os s e ssi on o f t h em
a s b aile e for the buyer or h i s a gent the tr an s it i s at
, ,

an end an d it i s i mm ateri al th at a further de s tin ati on

f
,

or the go od s m ay h ave been indic ate d b y the b uyer .

( 4 ) If the go ods ar e re j ecte d b y the buyer an d th e

c ommon c arrier or other b aile e c ontinue s in p os s e s si on
of them the tr an s it i s n ot deeme d t o be at an end even
,

if the s eller h as refu s ed to re ceive the m b ac k

-
.

( 5 ) When go od s ar e de l ivere d t o a s hip ch artere d

‘

b y the buye r it i s a qu es tion dep ending on the ci rcum

s t ance s o f
,

the p articul ar c as e whether they ar e in the

,

p o ss es s i on of the m as ter as a c ommon c arrier or as ,

“

a gent t o t he buyer .

( 6) Where the c ommon c arri er or other b ailee

wrongfully refu s e s t o deliver the good s to the b uyer ,

o r h i s a gent in th a t b eh alf the tr an s it i s dee me d t o be

,

a t an end .

( 7 Wh e r e p art deli very of t h e go od s h as be en m a de

t

t o the buyer or hi s agent in th at b eh alf the rem ainder ,

of the go od s may b e s topp e d i n tr an s itu unle ss s uch p art

delivery h as been m ade under such circu ms t ance s as to
s h ow an a gre ement t o give up p o ss e ss i on of the wh ole

of the good s .

In the Ont ari o s t atute the w ord c ommon which doe s ,

n ot occur in the ori gi n al s t atute h as be en in s erte d b efore

,
“ ”
the w ord c arrier The obj e ct of the ch ange i s not ob
.

v i o us as the
, me aning of the s ecti on appe ar s t o be un
ch anged
In the Unite d S t ate s the c orre s p ondin g s ecti on o f
.

the
Uniform S ale s Act i s t o the same e f f
ect but the v ar i o us
,

p rovi s i on s h ave been r e arr an ge d -

.
 74 . ST O PPAG E I N T R ANS I TU . 1 23

t o que s tion s re g ardin g the durati on of the tr an s it

As ,

n o w provided for by thi s s e cti on of the S ale of Good s Act ,

se e E lli s v H unt 1 7 8 9 3 T E 4 64 2 3 R C 4 1 6; B ird v

. , ,
. .
,
. . .

B rown 1 8 5 0 4 E x ch 7 8 6 2 3 R C 4 2 2 ; L ondon
, ,
.N orth ,
. .

We s tern R y Co v B artlett 1 8 61 7 H N 4 00 2 3 R C
4 34 ; Ch almer s S ale of G ood s 7 t h ed 1 9 1 0 pp 1 0 6 ff; 2 5
. . . . . . .
, , ,

Hal s bur y L aw s of E ngl and pp 2 4 8 if

. . .
, , ,

, , . .

The S ale of Go od s Act ( On t s 4 5 ; U K s 4 6) provide s . . . . .

45 . The unp aid s eller may exerci s e h i s ri ght of

s topp a ge in tr an si tu either by t a king a ctu al p o s s e ss i on

of the go od s or by givin g n otice of h i s cl aim t o the

comm on c arrier or other b aile e in wh o s e p o s se s si on th e
go od s ar e Such notice may be gi ven either t o the per
.

s on in a ctu al p o ss e ss i on of the go od s or to hi s princip al

In the l atter c as e the notice t o be e f f

.

e ctu al mu st b e ,

given at such time an d under s uch circum s t ance s t h at

the princip al by the exerci s e of re as on able dili gence
, ,

may c ommunic ate it t o h i s s erv ant or a gent in time t o

prevent a delivery to the buyer .

( 2 ) When notice of s t opp a ge in tr an s itu i s given by

the s eller to the c ommon c arrier or other b ailee in p o s
s e s s i on o fthe good s he mu s t r e deliver the good s t o or
,
-

a c c ording t o the dire cti on s of the s eller The e xp en .

s e s of s uch r e delivery mu s t be b orne by the s eller

-
.

In acc ord anc e with the l aw prev ailin g pri or t o the st at

ute thi s s ecti on authorize s the s eller t o ex erci s e the ri g h t
,

of s t o pp a ge in either one of tw o w ay s n amely by t akin g , ,

a ctu al p o ss e ss i on or by giving n otice t o th e c arrier

, ,

the l atter altern ative b ein g a rel ax ation of the old rule r e
qu i r i n g actu al p o ss e ss i on t o be t aken The e f fec t of the n o .

tic e i s t o give the s eller the ri ght to p o ss e ss i on of the go od s .

H e i s not entitle d t o re quire the c arrier t o interrupt the

tr an s it but he i s entitled t o prevent delivery t o the buyer
,

at the contr actu al pl a c e of delivery an d t o require delivery

t o him s elf .

B ooth Ste am s hip C o v C argo F leet Iron Co [1 9 1 6]

. . .
,
”
5 7 0 ; as t o n otic e t o the
“
2 KB . princip al in s te ad n o
1 24 C HA P T ER V I I R I G H TS AGAI N ST G OO D S
. .

tice t o the per s o n in actu al p o ss e ss i on of the good s s e e ,

L itt v C owley 1 8 1 6 7 T aunt 1 69 2 3 R C 4 1 1 ; White

. , , . ,
. .

he ad v Ander s on 1 8 4 2 9 M
. W 5 1 8 ; Kem p v F alk
, ,
. . . ,

1 8 8 2 7 App Cas 5 7 3 2 3 R C 39 9
, . .
,
. . .

The s elle r h aving by exerci s ing h i s ri ght of s to p p a ge in

,

tr an s itu pre vented delivery t o the buyer i s under an obli ,

g at i o n t o t ake delivery him s elf or give dire cti on s for de ,

livery an d in order t o obt ain delive ry he mu s t di s ch ar ge

,
‘

a n y lien which the c arrie r h a s for p articul a r ch arge s or

frei ght on the go od s in que s tion ( including n ot merely a

.

c ommon l aw lien for frei ght on delivery but al s o a c ontr ae ,

tu al lien for a dv ance frei ght ) but h e nee d n ot di s ch arge an y ,

gene r al lien which the c arrier h as by c ontr act or u sa ge for

othe r s um s owing by t h e buyer but not due in re s pect of the
p articul ar go od s The s eller may withdr aw the s t op an d
.

rele as e the go od s before the end of the tr an s it an d thu s ,

di s ch arge him s elf fro m the obli g ation of t akin g delivery ,

but i f he doe s n ot withdr a w the s top he will b e li able t o

the c arrie r for d am ag e s for the f ailure t o t ake delivery an d

the s e d am a ge s m ay be e quiv ale nt in am ou n t t o the frei ght .

B o oth Ste ams hip C o v C arg o F leet Ir on Co s upr a ; . . .

,

United St ate s Steel P roduct s C o v Gre at We s tern Ry . . .

Co .
[1 9 1 6] 1 A C 1 8 9
,
. . .

I n the Unite d St ate s t h e c orre s p ond i n g s e cti o n of t h e

Uniform S ale s Act ( s 5 9 ) c ont a in s the f o llowing additi on al
.

provi s ion in s ub s 2 -
.

If h owever a ne goti able document of title r ep r e

, ,

s enting the g ood s h as b een i s s ue d by the c arrier or oth

e r b ailee he s h all n ot b e obli ged t o deliver o r j u s tifie d

,

in deliverin g the go od s t o the s eller unle s s s uch doc u

ment i s fir s t s urrendered for c ancell ation .

7 5 . S al e or p l e d ge b y b u er
y .

The gener al rule i s th at the buyer c annot defe at the s ell

e r s rig ht of lien or retenti on or s topp a ge in tr an s itu by
’

s ellin g or pledging the go od s but the rule i s s ubj e ct t o ,

e xc epti on in f av our of a third p er s on wh o in good f aith an d

 C HA P T E R VI I . RI G H T S AGA I N ST G O O D S .

thu s ,
1 833, 5 B . Ad
8 1 7 , 4 R .C. 8 4 5 ; L e as k v . S c ott , 1 8 7 7 , 2
.

QE. D.
. 37 6, 4 R .C. 79 0 ; E x p arte Goldin g D a vi s Co ., 1 8 80 ,
1 3 Oh . D . 62 8 , 4 R .C . 8 5 1 ; Kemp v F lk
1 8 82 , 7 A p p . Cas .
'

. a ,

5 7 3, 2 3 R .C . 39 9 . S ee al s o C ahn v P o c ke tt s B ri s tol Ch an
’
.

nel Ste a m P a cket Co [1 8 9 9 ] 1 QB 64 3 in ch apter 4 § 4 4

.
,
‘

.
, ,
.

With re g ard t o s t opp a ge in tr an s itu the provi s o t o the

s ecti on of the S ale of Go od s Act a b ove quote d ( On t s 4 6; . .

U K s 4 7 ) a dopt s the rule of the common l aw decl are d in

. . .

L i c kb ar r ow v M as on s u p ra an d e xtend s it s o as t o m ak e
.
, ,

it ap plic able t o the tr an s fer by th e buyer of document s of

title other th an bill s of l adin g W ith reg ard t o lien it ap .
,

plie s the s ame extended rule a lien n ot bein g lo s t at c om ,

m on l aw as a g ain s t a buyer or su b buyer or other.tr an s

,
-

feree by the i ssue or tr an s fer of any document but a bill of

,

l ading th at being the only docume nt w hi ch p er s e tr an s fer

,

r e d p o s s e ss ion .

2 5 Hal sbu r y L aw s of E n gl and p 2 60 n o te It .

i s there further p oin t e d out th at s ome di f

, , ,

ficulty ari s e s
“
in the inte rpret ation of th e w ord s subj e ct t o the
”
ri ght s of the tr an s feree in the c as e of a pledge by the
buyer or owner of a document of title for an ante cedent
debt in V ie w of the provi s i on of the F a ct or s Act ( On t
,
.

s 5 ; U K s 4 : s ee ch apter 4
. . . . an d the opini on i s ,

expre ss e d th at the s ecti on of the F a ctor s Act s hould be

re a d as a s ec ond pr ovi s o to the s e cti on of the S ale of
Go od s Act .

A delivery order was i ssued by the owner of go od s an d

delivere d by him t o an other p er s on wh o in turn tr an s ,

ferred it t o a third p er s on who t ook it i n go od faith for

v alue It was held th at the delivery order was a d ocume nt
.
;

of title an d th at the unp aid vendor s lien of the ori gin al ’

owner was de fe ated

Ant Jur gen s M argar m e f
.

. ab r i e ke n V D reyfu s .
,

3 KB . 40.
In the Unite d St ate s the Uniform S ale s Ac t provide s
62 Subj e ct t o the provi s i on s of thi s ac t the unp ai d
.

s eller s ri ght of lien or s topp a ge in tra n s itu i s not af

,
’

f e c t e d by an y s ale or other di s p os iti on of,

the go od s
which the buyer may h ave m ade unle s s the s eller h as ,

as s ente d thereto .
 § 7 5 . SA LE OR PLE DG E BY B U YER . 1 27

If h owever a ne goti able document of title h as b een

, ,

i ss ue d for good s no s eller s lien or ri ght of s t opp age

,
’

in tr an s itu s h all defe at the ri ght of an y purch as er for

.

v alue in g o od f aith t o whom s uch document h as b een

ne goti ated whether s uch ne goti ati on b e p ri or or sub
,

s equent to the notific ati on t o the c arrier o r other b ailee ,

wh o i ssue d s uch document of the s eller s cl aim t o a ,

’

lien or ri ght of s topp a ge in tr an s itu .

A s to the n e goti ation of a ne goti able document of title ,

s e e ch apter 4 §4 7 , .

§ 7 6. Re -
sale by un p ai d sell er .

If the property in good s h as not p ass e d from the s eller

t o the buye r the s eller c an of c our s e r e s ell an d give a go od
,
' -

t itle to the good s to a third per s on whether or not the s ell ,

e r s a cti on in r e s ellin g i s in bre ach of h i s c ontr a ct with the

’
-

s eller . If the property h as p ass ed t o the buyer under the

ori gin al c o ntr act the s e l ler c ann ot as a m atter of c our s e
,

c onfer a go od title up on a third p er s on but he may b y V i r ,

tue of h i s c ontr act h ave the ri ght t o r e s ell or he may by -

,

s t atute or o t h er wi s e h av e the p ower t o give a go od title t o -

a third p er s o n up o n a re s ale -
.

The S ale of Go od s Act ( On t s 4 7 ; U K 4 8 ) pro v ide s . . . .

47. S ubj e ct t o the provi s ion s of thi s s e ction a ,

c ontr act of s ale i s not re s cinded b y the mere e xerci s e

b y an unp ai d s eller of hi s ri ght of lien or re tention or
s topp a ge in tr an s itu .

( 2 ) Where an unp aid s eller wh o h as exerci s ed hi s

ri ght of lien or retention or s topp a ge in tr an situ r e s ell s ,
-

the go od s the buyer acquire s a go o d title thereto as

,

a g ain s t the o ri gin al b uye r .

( 3) Where the go od s ar e of a peri sh able n ature or

where the unp aid selle r gi ve s notice to the buyer o f
,

hi s .

intention t o r e s ell an d the buyer doe s not within a

-
, ,

re as on able time p ay or tender the price the un p aid

, ,

s eller m ay r e s ell the go od s an d rec over from the o r

-

i g i n al buyer d am a ge s for an y l o s s oc c as ione d by h i s

bre ach of c ontr act .

( 4 ) Where the s eller e xpre ss ly re s erve s a ri ght of

r e s ale in c as e the buye r s hould m ake def ault
-
an d on ,
1 28 C HA P T E R V I I R I G H T S AGAI N S T G OOD S
. .

the buyer m ak in g def ault r e s ell s the good s t h e or i g ,

-

in al c ontr act of s ale i s thereby re s cinded but withou t , ,

prej udice to an y cl aim the s eller m ay h ave for d am a ge s .

The subj e ct of r e s ale at comm on l aw an d under the S ale

-

of G ood s Act i s di s cu ss e d in B enj amin 5 t h e d 1 9 0 6 pp 9 32

ffAt pp 9 5 1 2 it i s s aid by way of introducti on t o the d i s
. .
, ,

-
. .
, ,

c ussi o n of the me anin g of sub S S 3 an d 4 -

.

It h as alre ady be en s u g e s te d tha t the true c on g

s tructi on of s 4 8 ( 1 ) [ On t s 4 7 . i s one c on s on ant . .

with the c ommon l aw an d th at under i t s pr o vi s i on s t h e ,

mere f a ct th at the s eller hold s the go od s under hi s ri ght

of lien th at i s t o s ay a dver s ely t o the buyer olr h as
, , ,

s topped them in tr an s itu doe s n ot re s cind the c ontr a ct ,

.

In other word s the mere f act th at the buyer h as f aile d

,

t o p ay or i s in s olvent doe s not entitle the s eller t o r es

s cind the c ontr a ct Sub s 2 h owever de cl are s th at in
.
-
.
, ,

s uch circum s t ance s the s eller may p as s a good titl et o a

s e c ond buyer ; but i t le ave s unt ouche d an y remedy the

fir s t buyer may p o s s e s s in re spe ct of t h e r e s ale A s -

a g ain s t the s e c ond buyer he h as n one f

.

o r he c annot s u e

him for tre s p ass or f

,

o r c onver s i on or ( as after tende r

, ,

he c oul d at c omm on l aw ) for the detenti on of the go od s ,

for the s e c ond buyer h as a s t atutory title ; nor c an he

s u e the s eller for tre s p as s or c onver s i on as he i s n ot en ,

title d t o the p o ss e ss i on B ut under thi s s ub s e cti o n as .

-
,

a t c omm on l aw if the buyer within the time a ll owe d

, , ,

w as re a dy an d willin g t o a ccept an d p ay for the go od s ,

he c an afte r a r e s ale su e the s elle r for n on delivery ;

- -

or i f within s uch time he tender s the pric e an d dem and s

th e go od s he c an sue the s eller f
,
o r their detention it ,

b ein g n o defence in the l atter acti on t o s ay th at the de

fend ant h as p arte d with the p o s s e s s i on of the go od s .

Sub s 3 de cl are s in wh at circum s t ance s the s eller may

f f
-

by l aw r e s ell the go od s S ub s 4 decl are s the e f

.

-
ect o .
'
-
.

a r e s ale under an e xpre s s p ower The provi s i on s o f

s ub s s 3 an d 4 give ri s e t o very d i f
-
.

-
. fi c ul t que s ti on s of .

c on struction .

A s t o r e s ale s ee al s o 2 5 Hal s bu r y L aw s of E n gl and pp

-
, , ,
.

2 63 fi . B o oth Ste am s hip C o V C ar go F leet Iron C o [1 9 1 6] 2 . . .

1 30 CHA PT E R V I I R I G H T S AGAIN S T G OO D S
. .

s on able time The s eller s h al l not there after b e l i ab le

.
‘

t o the buyer up on the contr act t o s e l l or the s al e but ,

may re cover from the buyer d am a ge s for an y l o ss o c

c as i o n e d by the b re ach of the c o ntr act or the sal e .

( 2 ) The tr an s fer of title s h all not be he l d t o h ave

been re s cinde d b y an unp aid s e l l er un ti l he h as man i
f e s t ed by notice t o the buyer or b y s ome other overt ac t

an intention t o re s cind . I t i s n ot n e ce ssary th at su c h

o vert ac t s houl d b e c omm un i c ated t o the b uyer b ut th e

f
,

gi v in g or failur e t o giv e notic e t o the b uye r o t h e i n

tention t o re s cind s h all be r e l e v an t i n an y i ssu e i n v ol v
_

in g the que s ti on whether t h e buyer h ad be en in def aul t

a n unre as on able time b efore the ri ght of reci ss ion was

a s s erte d
.
 C HAP T E R V I II .

A CTI ONS F OR BRE A CH OF THE CO NTR A CT.

§ Action for the price

81 . .

8 2 D am a ge s for non accept ance

. -
.

8 3 D a m a ge s for non delivery

. -
.

8 4 Spe cific perform an ce

. .

8 5 D am ag e s for bre a ch of w arr anty .

.

§ 8 6 Intere s t or speci al d am a ge s
. .

f th p i
8 1 . A c t i on or e r c e.

The ri ght
s O fthe ell er
s enforce able b y action ag ain st
the buyer ar e p er s on al ri ght s as c ontr as te d with the re al
ri ght s Of an unp aid s eller di s cu ss e d i n ch apter 7 .

In s ome circum s t ance s the s eller may h ave a ri ght of ac

ti on for the price of the go od s s old in other circums t ance s
he may h ave merely a right Of
,

a cti on for d am age s .

A s t o d am a ge s s ee 82 , .

A s t o intere s t or s peci al d am a ge s s ee 86
f See ch apte r
.

Acti on include s c ounter cl aim an d s et Of

,

- -
.

B efore the Judi c ature Acts the p r ice of good s s old c o ul d

be re c overe d un der the c ommon i n d ebi ta t us c ount s The .

c ount for good s s old an d delivered w as applic able whe n the

property h ad p ass ed an d the go od s h ad been delivere d t o
the buyer an d the pric e w as p ay able at the time of acti on
,

broug ht Th e c ount for go od s b arg aine d an d s old was ap

.

plic able when the property h ad p as s ed t o the buyer an d t he

'

c ontr act h ad been c ompleted in al l re s pect s except delivery ,

an d the deliver y w as not a c o n d i t i o n pre cedent t o the p ay

‘

ment of the pr ice N ow it i s s u f ficient to s h ow f act s d i s

clo s ing either c au s e Of
.

acti on .

Ch almer s S ale of Good s 7 t h e d 1 9 1 0 p 1 1 8 ; cf 2 5

Hal s bur y L aw s O f
, , .
, . .

,
E n gl and p 1 2 1 n ote ( a ) . , . ,

In order th at the s eller s h o uld be entitl ed t o rec over t he

price he mu s t as a gener al rule an d un l e ss otherwi se agre e d
f
, , ,

S how th at the buyer h as received wh a t he b arg ained or .

1 32 C H APT ER V I I I A C TI O N FO R BRE A CH . .

In other w ord s the property i n the go od s mu s t h ave p ass ed

, ,
’

delivery mu s t h ave be en made or tendere d if de l ivery w as

a c onditi on p re ce dent to p aym ent an d the peri od Of
,

credit , ,

if an y mu s t h ave e xpi re d
, .

M as on R i s ch V Chri s tner 1 9 1 8 4 4 O L R 1 4 6 4 6
.
, , . . .
,

D .L .R . 7 1 0 , S C ,
1 9 2 0 , 4 7 O.L .R 5 2 , 4 8 O.L .R . 8 , 54 D .
L .R . 65 3 ; Ge dde s v. Ame ri c an
Cro ss Na ti on al Red
1 9 2 0 4 7 O L R 1 63 5 2 D L R 5 4 7 S C r ever s e d by t h e
Supreme C ourt Of
,
. . .
,
. . . , ,

C an ad a 1 2 t h October 1 9 2 0 ; 2 5 H al s , ,

bury L aw s of E ng l and pp 2 667

, ,
.
-
.

A s to the gener al rule th at p aymle n t an d delivery ar e

c oncurrent conditi on s s ee ch apter 6 61 As to the p as si n g
Of
, , .

the property from s eller t o b uyer see c h apter 3

Where the agre ement i s f or the s ale Of
.
,

good s n ot sp ec i
fi c or Of
,
s peci fi c go od s which ar e not in a deliver able s t ate ,

or which ar e t o b e wei ghe d or me as ure d before delivery t h e

b re ach by the buyer Of
,

hi s promi s e t o accept an d p ay c an
af fe ct the s eller only by w ay Of d amag e s The go od s ar e -
.

s till h i s .H e may s ell or not at h i s ple asure B ut h i s only .

a cti on a g ain s t the buye r [as a gene r a l rule ] i s for d am a ge s

for non accept anc e He c an in gener al re cover only the

-
.
'

d am a ge th at he h as s u s t aine d not the full price Of the ,

go od s .

B e nj amin S ale 5 t h c d 1 9 0 6 p 805 ; M as on

, ,
R i s ch .
, ,
.

v Chri stner sup r a ; cf V ip ond v Si s c o 1 9 1 3 2 9 O L R

. , . . , ,
. . .

2 00 , 1 4 D .L .R . 1 2 9 .

The p artie s may h owever a gre e th at notwith s t andin g

, ,

delivery the property in the good s s h all n ot p ass unti l p ay

ment in full ; an d th at the price sh all be p ay able I n I n st al
ment s or otherwi s e with o ut re g ard t o the p ass in g Of the
property In th at event the c as e i s t aken out Of
. the gen
e r al rule which prevent s a s elle r from r e c overin g the price
where he h as not p arted with the property in the go od s ,

a n d a fter delivery i s m ade or ten d ered the s eller may r e

c over the price in acc ord ance wi th the c ontr act .

Tuft s v P o n e s s 1 9 0 0 32 O R 5 1 ; M as on R i s ch V
.
, ,
. . .

Chri s tne r sup r a.,

Ag ain the p arti es may a gree th at the pric e s h all be p ay

able o u a d ay cert ain irre s pective Of
,

delivery an d in th at ,
1 34 C H A P T E R V I I I A CT I O N . F OR BRE A C H .

( 2 ) Where underc ontr act t o s ell or a sale the a

pric e i s p ay able on a d ay c ert ain i rr esp éc t i v e Of

, ,

dcl i v
ery or O f
,

tr an s fer of title an d the buyer wrongfully n e

gle et s o r r e f
,
.

us es t o p ay s uch pri ce the s eller may m ain ,

t ain an acti on for the pric e al thou gh the property i n ,

the go od s h as n ot p ass e d an d the go od s h ave n ot been ,

a ppropri ate d t o the c ontr a ct B ut it s h all be a defen s e .

t o s uch an acti on th at the s eller at an y time before ’

j udgment in s uch a cti on h as m anife sted an in ability to

perform the c ontr a ct Or the s ale on h i s p art or an i n
te n ti on not to pe rform it .

( 3) Alth ou gh the property in the g ood s h as n ot p ass

ed i f they c an n o t r e ad i l y b e re s old f
'

, o r a re as on able

price an d if the provi s i on s of s e cti on 64 ( 4 ) ar e n ot

the s eller may Off f
,

a pplic able [se e § 82 i n r a ] er t o de

, ,

liver t h e good s t o the buyer an d if the buyer re fu s e s ,

t o re ceive them m ay n otify the buyer th at the g o ods

,

ar e there after held by the s eller as b a ile e for the buyer .

There after the s eller may tre at the good s as the bu yer s ’

an d may m aint ain an a cti on for the price .

8 2 . D amages f or n On - ac c ep t an c e .

Under the provi s i on of the S ale of Go od s Act l as t quoted

( On t s 4 8 su b s 2 ; U K s 4 9 s ub s -
if the pr i ce i s p ay -

able o n a d ay cert ain irre s pe ctiv e O f

. . . . . . .
, ,

delivery an d the buyer

, ,

wrong fully ne gle ct s or refu s e s t o p ay the price the s eller ,

may s ue for the pric e n otwith s t anding th at the property

h as n ot p as s ed to the buyer but in other c as e s if the pro , ,

perty h as not p ass ed the s eller may su e only for d am age s ,

for non a ccept ance If the property h as p as s ed an d the

-
.

buyer wr on gfully n e glect s or refu s e s to p ay the s eller it , ,

s eem s ma y s u e either for the price or for d am a ge s for non

,

a ccept a nc e in which l atter c as e h i s c onduct a m ount s t o an

ele cti on to tre at the buyer s c onduct as a repudi ati on Of
,

t he
’

c ontr a ct
Se e 2 5 Hal s bury L aw s O f
.

E ngl and pp 2 66 n ote ( i ) , ,

. , ,

2 67 n ote ( m )
The S ale Of
, .

Go od s Act ( On t s 4 9 ; U K s 5 0 ) provide s . . . . .

49. Where the buyer wron gfully ne glect s or

 § 8 2. DAMAG E S F OR N O N A C CE PTAN CE
-
. 1 35

re fu s e s to a ccept an d p ay for the go od s the s eller may ,

m aint ain an a ction a g ain s t him for d am age s for non

a ccept ance

( 2 ) Th e me as ure O f
.

d am a ge s I s the e s tim ated l os s

directly an d n atur ally re sul tin g in the ordin ary c our s e
of event s from the buyer s bre ach Of
,

,
c ontr ac t ’
.

( 3) Where there i s an av ail able m arket for the go od s

in que s ti o n t h e me as ure of d am a ge s i s p r i ma ac i e to f
be as cert ained by the di f f
,

erence be tween the c ontr act

p rice an d the ma rket or current price at the time or
time s when the go od s ought to h ave be en a ccepted or , ,

if n o time w as fixe d for accept ance then at the t i me ,

of the refu s al to accept .

A s to Wh at i s me ant by the time be i n g fixe d under

s ub s 3 c omp are the p ar allel provi s ion Of
-
.
, the next foll o w
i n g s ection rel ating t o d am a ge s for non delivery an d the
,
-
,

d e ci s i on s with re g ard to it referre d t o in 83 ,

.

The p artie s Obli g ati on s to deliver goods an d t o accept

’

an d p ay for the m under a c o ntr a ct may be di s ch arge d by

a. mutu al a greement t o s ub s titute for th at c ontr a ct a n ew

c ontr act notwith s t andin g th at the new c ontr a ct i s unen

,

force able by re as on of the St atute of F r aud s See M orri s .

V B aron [1 9 1 8 ] A C 1 : ch apter 2 § 2 5
. , .B u t the c ourt s
.
,
.

h ave alw ay s rec ognize d the di s tincti on betwe en a subs ti

t ut i on O f one ag reement for another an d a volunt ary for
be ar ance t o deliver at the reque s t Of
,
”
another an d will n ot

r e g ard the l atter as af fec t i n g the ri ght s Of

,

the p artie s fur

ther th an thi s th at if a man as k s t O h av e p e r f or ma n c e Of
s

'

'

h i s c ontr act p o s tp oned he doe s s o at h i s own ri s k F or if

the m arket v alue Of
, .

the good s which he s ho ul d ha ve a ccept

e d at the e a rlier d ate h as altered a t the l atter d ate the r ate

Of
,

d am a ge s may be as s e s s e d as a g ain s t hi m either at the , ,

ti me when the perform ance s hould h ave t aken pl ace an d ,

a n d when by non perform a nce the c ontr act w as broke n or

when he ultim ately e xh au s te d the p atience Of
-
,

the s eller ,

an d definitely refu s e d t o perform the c ontr a ct .

An s on Contr act 1 5 th e d 1 9 2 0 p 337 citing H ick

, ,
.
, . ,

man v Hayne s 1 8 75 L R 1 0 C P 60 6 an d Ogle v E arl

.
, ,
. . . . , .

V ane 1 8 67 L R 2 QB 2 75 3 QB 2 72
, , . . .
,
. .
1 36 C H A P T ER V I I I A C TI O N . F OR BRE A C H .

The me as ure Of d am a ge s i s the e s tim ate d l o s s directly

a n d n atur ally re s ulting in the Ordin ary c our s e Of
, event s ,

from the buyer s bre a ch of c ontr a ct an d t h e c o ur t h as n o

’
,

p ower to ad d a pen alty If therefore the buyer h as p ai d

a s um O f m oney t o the s eller by way Of
.

dep o s it the buyer

i s entitled to the return O f
,

it ( le s s the amount for which

he i s li able for bre ach of c ontr a ct ) unle ss t h e p artie s h ave
a greed th a t the dep o s it s h a ll b el on g to the s eller I n the
event O f the buyer s f ailure t o pe rform the c ontr act
’
.

B r o wn V W al s h 1 9 1 9 4 5 O L E 64 6
.
, ,
. . . .

In M as on R i s ch V Chri s tner 1 9 2 0 4 7 O L R 5 2 at pp
.
, ,
. . .
, .

5 3 5 4 ( j udgm ent v arie d 4 8 O L E 8 5 4 D L R 65 3) Mid

, , ,
. . .
,
. . .

d l e t o n J ; s ay s
Th e fund ament al principle in al l c as e s Of bre ach of
c ontr a ct i s th at s o f ar as money c an do it
, the o ther ,

p arty to the c ontr act s h all b e pl ace d in as go od a si t

n ati on as if the c ontr act h ad been pe rformed t hi s ,

principle being s ubj e ct t o the qu alific ati on th at the

pl ainti f fh as c as t up on him the Obli g ati on of t aking all
re as on able s tep s to miti g ate hi s l o ss c on s equ ent up on
’

the bre ach If auth ority i s needed it i s found in B rit

.
,

i s h We s tin ghou s e E le c tri c an d M anuf a cturin g C O v . .

Underground E le ctri c R ailw ay C O [1 9 1 2 ] A O 67 3 . . . ,

an d F ayzu V S aunder s [1 9 1 9 ] 2 K B 5 8 1 The r ule

.
,
. .

re li ed up on by the defend ant found in m any c as e s

th at the d am a ge in the c as e O f
, ,

refu s al t o accept go od s
i s the di f ference b etw een the c ontr a ct price an d the
m arket p rl c e I S merely an ex ample Of the w orking out
Of
,

thi s principle If good s c an be s old on the Op en

m arket the vendor s duty i s t o Of f
.

,
er for s ale an d s o
’
,
‘

miti g ate h i s d am a ge ; but thi s rule h as n o applic ati on

to c as e s in which there i s n ot an open m arket for the
good s A de aler h avin g a qu antity of g r ain c an alwa y s
s ell it up on the open m ar k et an d it m ak es no di f f
.

erence ’

t o him wh o buy s The thin g Of

,

. import ance i s the dif

ference between the pri ce the defend ant a greed t o
give him an d the price he thu s Obt ain s .
'

Where the arti cle s old i s a m achine or a pi an o an d

'

there i s n o such thin g as an op en m arket re a dy t o ab

1 38 C H A P T ER V I I I A C TI O N. F OR BRE A C H .

the s eller c ould n ot h ave fille d the order s Of b oth buyer s

In th e c as e Of
.

good s which h ave n ot been m anuf actured

when the buyer repudi ate s the c ontr a ct the s eller i s e n ,

titled t o rec over the a m ount of the pro fi t which he w o ul d

h ave m ade if the go od s h ad b een m anuf a cture d del ivered ,

an d p ai d for .

In re V i c Mill [1 9 1 3] 1 Ch 1 8 3 4 65 ; cf B run swi c ke

, .
, .

B alke C ollender CO V F al s etto 1 9 1 5 34 O L E 38 6 2 5

. .
, , . . .
,

D L R 8 4 8 ; C on s olid ate d P l ate Gl ass C O V M c Ki n n on

. . . . .

D as h Co 1 9 1 7 4 1 O L R 1 88 4 0 D L R 4 7
.
, , . . .
,
. . . .

In the Unite d St ate s the Uniform S ale s Act provi de s

64
. Where th e b uyer wron gful ly ne g le ct s Or ~

refu s e s t o a cce p t an d p ay for the good s the s eller may ,

m aint ain an acti on a g ain s t him for d am a ge s for non

a c cept ance .

( 2 ) The me as ure of d am a ge s i s th e e s tim ate d lo ss

dire ctly an d n atur ally re s ultin g in the ordin ary c ours e
Of f
,

event s from t h e buyer s bre ach O c ontr act

,
’
.

( 3) Where there i s an av ail able m a rket for the goods

in que stion the me asure Of,
d am ag es i s in the ab s ence of ,

s p eci al circum s t ance s s h owin g proxim ate d am a ge of a

gre ater amount,t he di f f

,

e renc e between t h e contr a ct p rice

an d the m arket or current price at the time or tim es when

the good s ought to h ave b een accepted or if no ti m e was

fixed for a ccept ance then at the time Of
, , _

,
the refu s al to
a ccept .

( 4 ) I f whi le l ab or or exp en s e Of m ateri al amount are

nece ssar y on the p a rt Of
,

the s eller to en able him to fulfil l

hi s Oblig ation s un der t h e contr act t o s ell O I th e sal e the ,

b uyer repudi ates the contr act or the s ale or notifie s the ,

s ell er to p roc eed no f urther therewith the buyer s h all be ,

l i able t o the s eller for n o gre ater d am a ge s th an the s e l ler

w ould h ave s u f f ered if he did n othing t o w ard s c ar r yI n g
out the c ontr act or the s ale after re cei v ing n otice Of the
buyer s repu d i ati on or c ounterm and The pro fi t t he
’
.

s eller w ould h ave m ade if the c ontr a ct or the s ale h ad ,

been fully perfor me d s h all b e c on s idered in e s tim atin g

s uch d am age s .
 § 82. DAMAG E S F OR N ON -
A CCEP TAN CE . 1 39

65 Where the good s h ave not been delivered to the

.

buyer an d the bu y er has repudi ated the contr act to s ell

,

or sale h as m anife s ted h i s in ability to perfo rm h i s

,

Oblig ations there under or ha s committed a m ateri al

,

bre ach thereof the s eller may tot ally re s cind the contr act
or the sale by giving notic e of
,

h i s election s o to do to the
buyer .

§ 83. D amages f or n o n - d eli v ery.

The buyer s p rop riet ary remedie s h ave been referred to in

’

ch apter 7 § 7 1 It rem ain s to di s cu ss the buye r s remedie s

,
.
’

by way of action for d am age s Action includes countercl aim

f See ch apter 9
.

or s e t Of
The S ale Of
. .

Good s Act ( On t s 5 0 ; U K s 5 1 ) p rovide s

. . . . .

50 . Where the seller wrongful ly n eglect s or r e

fu se s to deliver the good s to the buyer the buyer may ,

maint ain an action ag ain st the s eller for d am a ge s for non

delivery .

( 2 ) The me asure of d am a ge s i s the e stim ated lo ss di

r e c t l y an d n atur a lly re s ulting in the ordin a ry c our s e O f

event s from the s eller s bre ach Of

,

,
contract
’
.

( 3) Where there i s an av ail able m a rket for the good s

in que s tion the me asure of d am age s i s p ri ma ac i e to be f
as cert ained by t h e di f f
,

e rence between the contract p rie

an d the m arket or current price Of the good s at the t ime
or times when they ought to h ave been delivered or if no , ,

time was fixed then at the time of the refu sal to deliver
, .

A s to the me as ure of d am a ge s where there i s no av ail able

m arket an d as to s peci al d am age s see § 8 6 A s to wh at i s
, ,
.

me ant by an av ail able m arket in the c as e of non ac cept ance

Of
~

good s s e e 8 2
, .

If the time for delivery i s fixed by refere nce to t he h ap

p e ning Of an event it i s fixed withi n the me aning Of
,
s ub s 3 -
. .

On the other h and if the contr ac t p rovi de s for delive ry with

,

in a r e ason able time after a future d ate it i s not a contr act for ,
.

delivery at a fixed time within the me aning of the sub s ec tion -

I n an y ev ent the p rovi s ion Of

.

s ub s 3 th at the d am a ges ar e
-
.

to be as cert ained with reference to the m arket or cur rent

p rice at the time Of the refu sal to deliver doe s not apply to
a c as e where t h e bre ach i s a n a ntic ip ato ry bre ach I f for i n .
,
140 C H A PT ER V I I I A CTI O N FOR BRE A C H . .

t nce the s eller repudi ate s the contr act b efore the time at
s a ,

which the good s ought to h ave been delivered the buyer with , ,

out buying ag ain st the s eller may bring h i s ac tion at once , ,

but if he doe s so hi s d am ag e s mu st be as se ss ed with reference

to the m a rket p rice Of
,

the good s a t the time at which th ey

ought to h ave been deliver ed under th e contract If the action .

comes on for tri al before the c ontr actu al d ate for delivery h as .

a rrived the court mu s t a rrive at the p ri c e as be s t it c an

,
The .

buyer mu s t however do wh at i s re as on able to miti gate t he

, ,

d am a ge s an d if the s eller c an s how th at the buyer acted un

,

reas on ably i n not buyin g again st him the d ate to be t aken ,

i s the d ate at wh ich the buyer ought to h ave gone into t h e

m a rket to miti gate the d am age s .

M el ac h r i n o v Ni ckol l [1 9 2 0 ] 1 K B 69 3 ; Millett v
.
, . .

V an H eek Co [1 9 2 0 ] 3 K B 5 35 ; Morrow Cere al CO V

.
,
.
'
. .

O gilvi e F l our Mill s Co Can S C R 4 03 4 4 D L .

,
. . . .
,
. .

R 5 5 7 rever sing in p art O gilvi e v Morrow 1 91 7 4 1 O

. , , , . , ,
.

L R 5 8 39 D L R 4 63 ; see al s o B rown v Muller 1 8 7 2 L R

'

. .
,
. . . . , ,
. .

7 Ex . R C 5 2 7 ; R oper v J ohn son 1 8 7 3 L R 8

. . .
, ,
. .

C P 1 67 2 3 R C 5 32 ; D ominion R adi ator CO V Steel Co

. .
,
. . . . .
,

1 9 1 8 , 4 3 O.L .R . 35 6.
The p rovi sion of sub s 3 th at the me asure Of d am a ges i s -
. ,

to be as cert ained with reference to the m arket or current p rice

at the time whe n the g ood s ought to h ave b een delivered i s ,

in ap plic able where th e p rice has b een p rep aid I I I su ch c as e .

,

if the m arket p ri ce i s h i gher at the tim e of tri al th an at the

time s pecified for delivery the d am age s ar e to b e ascert ained
with reference to the p rice at the time Of
,

t ri al .

P eeble s v P feifer 1 9 1 8 1 1 S as k L R 2 4 9 citing 2 5 .

Hal sbur y L aws Of

. . . .
, , ,

E ngl and p 2 7 1
I n the c ase of a c i fcontr act the delivery contempl ated
, . .
,

i s a con st ructive delivery Of

. . .

the g o od s by tender Of
:

the invoic e
ins ur ance p olicy an d bill Of
,

l ading as s oon as p o ss ibl e after "

s hi pment of the good s an d the time for delivery within t h e

me aning Of
,

s ub s 3 i s therefore the d ate at whi ch the se docu

-
.

ment s i f
, s ent forw a rd w ith re ason ab le d es p atch should h av e ,

re a ched the buyer not the d ate at whi ch the good s them ,

s elve s should h ave a rrived .

Sh a rp e v No saw a [1 9 1 7 ] 2 . A s to ,

contract s s ee al so ch apter 6 61 , , .
142 C H A P T ER V I I I '
. A C TI ON F OR BRE A C H .

when the y sho ul d h ave b een delivered ; an d it i s imm ateri al

to p rove th at at the d ate of t he j udgment awarding the
d am age s the g ood s were either worth more or worth l e ss
th an they were at the d ate Of the bre ach If the good s .

w ere w orth £5 0 a t on on the d ay for delivery it w ould be ,

irrelev ant t o prove th at they were w o rth £1 00 a t on on

the d ay of the j ud gment The re as on for e xcluding th at.

evidence i s th at s ub s equent fl uctu ation s in v alue of the

good s which ought to h ave been delivered ar e too remo t e
a s a con s equence of the Ori gin al b r e ach to b e t aken into ,

a ccount by the court The refore s hutting out the ch ange

in the v alue of the go od s after the d ate Of
.
,

the bre ach if ,

the d am age s h ave to b e ass e ss ed in the currency of a

forei gn country t h e court has to ar r ive at a fi gure ex
,

p re ss ed in foreign currency An E ngli sh court ho wever .

, ,

c annot give j ud gment in forei gn currency there being no ,

power t o enforce s uch j udg ment Therefore the court .

mu st tran sl ate into E n gli sh currency the figure a rrived

at as t h e d am a ge s in foreign currency on the d ate of the

bre ach Ju st as the court h as t o exclude from the c aleu

l ation Of
.

the d am a ge s the s ub sequent ch an ge in the v alue

of the good s after the d ate of the bre ach s o it has to ex
c l ud e the sub s equent ch an ge in t h e v al ue Of
,

the currency
a fter the d ate of the bre a ch ; an d for the s ame re as on

n amely t h at the ch ange s in the v alu e of the currency are

to o re mote a c on s e quence Of
,

the bre ach t o be t aken int o

con sideration b y the cou r t .

D i F erdin ando v Simon from which the fore going p as s a ge

i s quoted was a c as e Of breach Of contr act for the c arri a ge Of
.
,

g oo d s an d c on v e rsmn The sa me rule n amely th at the v alue

Of foreign currency i s to be e sti mat ed as Of
. , ,

the d ate of the

b re ach not as Of the d ate Of the j udgment had p re v iou sly
be en appli ed in the c ase of a s ale Of
,

,
good s See B ar ry V . .

V an den H urk [1 9 2 0 ] 2 K B , 7 0 9 ; L ebeaup i n v C ri s p in

. . ,

[1 9 2 0 ] 2 K B 7 1 4 On the oth e r h and see Ki rs ch v Allen

. .
, .

Harding Co 1 9 1 9 8 9 L J K B 2 65 an d the editori al opin

.
, ,
. . . ,

i o n in i t s f a vour expre s s e d in 37 L aw Qu arterly R eview p 7 , .

( J an
. The c as es ar e reviewed in an article in the s ame
v olume at pp 38 fi . Another c as e since report ed i s The V 0 ]
.

t urno [ 1 9 2 0 ] P 44 7
‘

, . .
 § 8 3. D AMAG E S F OR N O N -
DEL I VERY . 1 43

In Sl ater v H oyle Smith [1 9 2 0 ] 2 K B 1 1 at pp 2 0 fi

. , . , .
,

S c rut t on L J sa id : . .
,

It i s well s ettled th at d am a ge s for non delive ry of -

good s where there i s a m arket p rice do not include d am

a g es for t h e lo ss Of
, ,

an y p a rticul ar contr a ct unles s th at

contr act has been in contempl ation Of the p artie s to t he

origin al contr act : H orne v Midl and R y Co 1 8 7 3 L R . .

The value Of
. .
, ,

8 C P 1 31 the good s in the m arket inde

.
‘

f
. .

p endently of an y circum st ance s peculi ar to the pl aintif

i s t o be t aken : Gre at We s tern R y CO v R edm ayn e . . .
,

1 8 66 L R 1 C P 32 9 ; Wil l i ams v
,
. . . R e yn ol d s
. 1 8 65 .
, ,

6B . S 4 9 5 5 05 If the p l ai n t ifi h as a p rofit able con

. , .

tr act to s ell good s an d there i s a m arket he c an s upply

, ,

him self wi t h the good s by purch as in g in the m arket an d ,

he i s then left without the goo d s he should h ave r eceived

under the o ri gin al contr act an d h as lo s t their market v alue .

B ut s uppo se hi s s ub contr act i s at a p ri ce below in ste ad

-

of above the m arket p rice so th at if he de l ivers good s ,

'
,

under the sub contract he lo se s Can hi s d am age s be

-
,
.

li mi ted by the amount he would h ave received On the sub

’
contract " On t he above rea s oning i t w ould s eem not .

H e could supply the s ub contr act by buy m g in t he m arket

an d then s houl d h ave good s delivered to hi n Of a ce r tai n f
m arket v al ue which he has lo s t bec aus e they were not
,

delivered Thi s has been decided i n the c as e of non de

.
-

l i very of good s by the Court of Appe al in Ro d oc an ac hi V

Milburn 1 8 8 6 1 8 Q B D 67 an d by the H ou se of L o rd s
, , . . . ,

in "Willi am s V A giu s [1 9 1 4 ] A O 5 1 0 where R o d oc an

. ,
. .
,

a chi V Milbur n w as approved

. .

In s ub sequent p as sa ges of hi s j udgment in Sl ater V H oyl e .

Smith S c rut t o n L J exp re s s ed the opinion that the sam e

, ,
. .
,

p rinciples should apply in the c as e of del ay in delivery th at ,

i s th at the b uyer s hould not be limited in hi s d am ag e s by t he

,

amount he would h ave received under the sub contr act not -
,

withs ta nding the deci sion of t h e P rivy C ouncil to the con

t r ary in the c as e of Werth eim V Chicoutimi P ulp Co [1 9 1 1 ] . .
,

A O 30 1
. . The c ase of Sl ater v H oyle Smith was however
. .
, ,

on e of bre ach of w arr anty an d the que s tion a ctu al ly requiring ,

deci sion i s st ated in 8 5 .

1 44 C H A P T ER V I I I A C TI O N FOR BRE A C H
. .

The p artie s may by their contr act ass ess in adv ance the
a mount of the d am age s to be p aid for non delivery if the -

an d i s p ay able in re s p ec t Of
,

amount fixed i s re ason able the

b re ach Of
,

a s ingle s tipul ation ( as contr as ted with the bre a ch of

an y one of s ever al s t i p u at i o n s s ome more an d s ome le ss i m ,

p ort an t ) or i s gr adu ated accordin g to the extent of the bre ach

,

o r according to the time during whi ch def ault con t i nues .

P el ee I sl and Navi gation Co v D oty E ngine Works . .

Co 1 9 1 1 2 3 O L R 4 02 an d c as e s cited
.
, ,
. . . , .

8 4 . S p e ci fi c p er f orman ce.

The gener al rule i s th at the court will not gr ant sp ecific

p erform ance of contr act s rel ating to p er son alty not b ec au se
of an y di f ferenc e betwe en re al an d per s on al pro p erty but b e ,

c au s e u s u ally d am a ges will be an adequ ate remedy If there .

fore the contr act i s for the sale Of

,

,
a s p ecific ch attel an d d am ,

a ge s wi ll not be an adequ ate remedy s pecific perform ance ,

may be enforced The c as e s ar e collected in t h e note s in 2

.

White Tudor s Leading C as e s 8 th c d 1 9 1 2 pp 4 2 8 E to

’
,
.
, , . ,

t h e c as e of Cud d ee v R utter 1 7 2 0 5 V in Abr 5 38 pl 2 1 6

.
, ,
. . ,
.
,

R .C . 64 0 .

In Ont ari o the S ale of Go od s Act provide s

5 1 I n an y a ction for brea ch of contr act to deliver s p e
.

c ifi c or as cert ained good s the court may if it think s fit , , ,

direct th at the contract S h all be p erformed s pecific ally ,

without giving th e defend ant the Option of ret aining the

good s on p ayment Of d am a ge s an d may i mp ose s uc h term s
a n d condition s as to d am age s p ayment Of
/
,

the p rice an d , ,

o therwi se as to the court may s eem j u st

,
.

I n the United Kingdom the S ale of Good s A c t p rovide s

5 2 In an y action for bre ach Of
. contr act to deliver sp e
c i fi c or as cert ained good s the court may if it thin ks fit

on the applic ation of the pl ainti f fby i ts j udgment or

, ,
'

d ecree direct th at the contr a ct sh all be p erfo rmed s p eci

fi c all y without giving the defend ant the option of ret ain
,

ing the good s on p ayment of d am a ge s The j udgment or .

d ecree may be uncondition al or up on s uch term s an d con

d i t i o n s as to d am a ges p ayment of the p rice an d othe r wi se
, , ,
14 6 C H A PT ER V I I I A CTI O N . F OR BRE A CH .

(2 ) The me as ure of d amage s for brea ch Of

’

w a rr anty
i s the e s tim ate d l o ss dire ctly an d n atur ally re s ul tin g i n ,

the ordin ary cour s e of event s from the bre ach of war ,

r anty .

( 3) I n the c as e of bre ach of w a rr anty of qu ality such

f
l oss i s p r i me ac i e the d i fi er en c e be tween the v alue of the
,

good s at the time of delivery to the buyer an d the value

they woul d hav e had if they h ad an swered t o the w arranty .

( 4 ) The f a ct th at the buyer h as set up the bre ach of

w arr anty in dimin ution or extinction Of the price doe s '

not p revent hi m from m aint aining an ac tion for the same

b re ach of w arr ant y if he h as suffer ed further d am a ge .

‘
Q u ali ty Of”
goods i s defin ed ( On t s 2 ; U K s 62 ) as . . . . .

i nc luding their st ate or c ondition .

I n the Unite d St ate s a s h as b een p ointed out in ch ap ter

,

5 re s ci ss ion i s all owe d as an altern ative reme dy in c as e of

,

b re ach of w arr anty an d the Uni form S ale s Act c ont ains
p r o v i s ion s m ateri ally di f ferent from th o s e Of
,

the S ale of
G o od s Act . A s re g ard s the me asure of d am a ge s however , ,

the tw o st atute s ar e not s ub s t anti ally di ss i mi l ar Th e Un i . .

form S ale s Act ( s 69 ) provide s .

69 . Th e me a ure of d am ages for b re ach of

s

warr anty i s the lo ss dire ctly an d n atur ally re s ultin g i n

the Ordin ary c our s e Of
,

event s from the b re a ch of w ar i

,

r an ty .

( 7 ) I n the c as e of bre ach Ofw arr anty o f qu ality .

,

s uch l o ss in the a b s ence of s peci al circum s t ance s s h ow

f
,

, ,

ing proxim ate d ama ge of a gre ater a mo unt i s the di ,

ference between the v alue of the go od s at the time o f

delivery t o the b uy er an d the v alue they w ould h av e
h ad if they h ad an s wered t o the w arr anty .

Th e ab atement in p rice to be allowed to the b uyer i s the

am o u nt by which the v a lue of the go od s i s reduced b y r e a

s on of the bre ach of w arr anty : M ondel V S teel 1 84 1 8 M .

, , .

W. 8 5 8 It i s th e actu al reduction i n v alue which mu s t

'
. .

b e c on s idered n ot an e s tim ate m a de by either p arty an d

, ,

th e price obt ain able for the go od s i s s trong th ough not n e ,

c ess ar i l y c onclu s i v e e v idence of the a ctu al v alue

,
D am a ge s .

may b e gi v en to the b uyer for the li a bili ty whi ch he h as

 § 85 . BRE A C H OF WA RR ANT Y . 147

incurred by s elling the good s on the same w arr anty as th at

on which he bought D in gle V H are 1 8 5 9 7 CB N S 1 4 5 ;
. .
, , . . .

R and all v R a per 1 8 5 8 E B

. E 84 , , . . . .

C at al ano V Cun e o F ruit an d Imp orting Co 1 9 1 9 4 6

. .
, ,

O L R 1 60 4 9 D L R 61 0 ; cf Wo od v Ander s on 1 9 1 5
. . .
, . . . . .
, ,

33 O.L .E . 1 4 3.

Where there i s a w arr anty the buye r may even afte r , ,

in s pe cti on t ake p o ss e ss i on of the good s an d s ell them an d

, ,

neverthele s s cl aim d am a ge s for bre ach of w arr anty See .

Ch apter 6 § 6 6 The buyer owe s a duty t o the s eller to i n

,
.

s pect the good s at the pl ace of delivery The me as ure of .

d amage s i s the d i fi er e n c e between the a ctu al v alue of the

'

go od s when delivere d at th at pl a ce an d the v alue whi ch they

o ught t o h ave h a d an d in c as e of bre a ch of w arr anty an i n

in s pe cti on Of the g o od s will inform the p l ai n t i fi of

,

their
then qu ality an d c onditi on an d en able hi m not onl y t o as
c ert ain their v alue when delivered but al s o t o di s ch ar ge ,

the Obligation incumbent on hi m to mitig ate the d am a g es .

Merrill V W a ddell 1 9 2 0 4 7 C L R 5 72 5 4 D L R
.
, ,
. . .
, . . .

1 8.

M anufa cturer s a gree d t o s ell 3000 piece s of unble ached

c otton cl oth Of a s pe cified qu ality at a c ert ain price t o b e

delivered within a cert ain peri od They delivere d 1 62 5 .

'
piece s of inferi or qu ality The buyer s acce pted an d p aid .

for the s e piece s but refus ed t o t ake an y further deliverie s ,

an d being s ue d by the manuf a ctur er s for non a ccept an ce of -

the r em ai n i n g pie c e s c o unter cl aimed d am a ge s for bre ach -

Of
,

w arr anty of qu ality in rel ation t o the 1 62 5 piece s The .

buyers h ad m ade a c ontr act to de l i v er 2 0 00 piece s of bl eac h

ed cloth t o third per s on s at a price per piec e hi gher th an
t h e m ar k et pric e p er pie ce o f the 1 62 5 p iece s as delive r
ed an d in f ul fi lment of th at c ontr a ct h ad a ctu all y dcli v
,

e red 6 9 1 of the 1 62 5 piece s an d h ad re ceive d p ayment for ,

them It w as held th at thi s c ontr act was not to be tak en

.

i nto a cc ount in me asuri n g the d am age s .

Sl ater v H oyl e Smi th [1 9 2 0 ] 2 K B 1 1 fol l owin g

. ,
. ,

R o d o c an ac h i V Milburn 1 8 8 6 1 8 Q B D . 67 an d Wi l
. , ,
. .
,

li am s V Agiu s [1 9 1 4 ] A C 5 1 0 an d di s t i n gui shing

. ,
. . ,
148 C H A P T ER V I I I A CT I O N FOR BRE A C H
. .

Wertheim v Chic outimi P ulp Co [1 9 1 1 ]

. .
, A C. 30 1 . A s
.

to Sl ater V H oyle S mi th see al s o 8 3

. , .

With re g ard t o gener al d am a ge s th at i s the di f ferenc e , ,

between the v alue of the thin g c ontr acte d for an d th at

of the thin g s upplied the que s ti on whether the prop er ,

t y h as p ass ed or n ot m ay b e imp ort ant Until t h e .

prop erty in g ood s h as p as s e d to the buyer he i s n ot en ,

title d t o su e for gener al d am age s for bre ach of w arr anty

f
,

or n o one c an b e inj ure d by a diminuti on in v alue s imply , ,

of a ch attel until he own s it F rye V Milli g an 1 8 8 5 1 0 O

, . .
, ,
.

R 5 09 ; Tomlin s on V M orri s 1 88 6 1 2 O R 31 1
. . If h oweve r , ,
. . .
, ,

the b uyer i s s ued for the price he may s et up the diminution

Of v alue by way o f s et o f
fwhether the property h as p ass e d
,

-
,

or n ot C op el and V H amilton 1 89 3 9 M an R 1 4 3; Cull V J

. .
, ,
. .

R o b ert s 1 89 7 2 8 O R 5 9 1 ; Crompton an d Kn owle s L o o m

W ork s V H o f f
. .
, ,

.m an 1 9 0 3 5 O L R 5 5 4 Ag a in althou gh . . .

the buyer i s n ot entitle d t o s u e for gener al d am age s f

.
, , ,

or

b re ach of warr anty until the property h as p as s ed the f ac t

m
,

th at the prop erty h as n ot p as s e d will n ot deb ar h i fro m ,

s uing for s pe ci al d am a ge s for in st ance for l o ss of profit s , , .

If a m a chine the s ubj e ct m atter of the c ontr a ct wi ll n ot d o

, ,

the w ork whi ch it was w arr anted t o b e c ap able of doin g an d ,

the buyer cl ai m s d am a ge s for l o ss of profit s it i s n o an s we r ,

for th e s eller t o s ay th at the ma chine doe s not bel o n g t o

th e buyer Th e que s ti on of owner s hip i s irrelev ant to t h e
.

buyer s cl aim H e i s i n j ure d by the f ailure of the m achin e

’
.

t o do the w or k for whi ch he w anted it n o m atter wh o own s ,

it Jone s v P ag e 1 8 67 1 5 L T N S 61 9 ; F owler V L o c k
. . , ,
. . . . .
,

1 8 72 4 L R 7 C P 2 72 9 C P 75 1 n 1 0 C P 9 0
-
,
. . . . ,
. .
,
. . .

N ew H amburg Mfg CO V Webb 1 9 1 1 2 3 O L R 44 . . .

“

, , . . . ,

at pp 4 8 5 1 ; cf D omini on P aper B o x C o V Crown Ta il

. . . . ~

orin g Co 1 9 1 8 4 2 O L R 2 4 9 4 3 D L R 5 5 7 A s t o sp e é
.
, ,
. . .
,
. . . .
‘

c i al d a m ag e s for bre a ch of w arr anty s e e al s o 86 , .

§ 8 6. I n t er e st or sp ec i al d amages .

The S ale of Goo ds Act ( On t s 5 3 ; U K s 5 4 ) provide s

53. N othin g in thi s Act s h all a f
. . . . .

fect the ri ght of the

'

buyer or the s eller to rec ov er i n t er es t o r spe ci al d am ‘

1 50 C H A PT E R V I I I A C TI O N . F OR BRE A C H .

whe re as it w oul d perh ap s b e more accur ate t o s ay th at

“
where the kn owledge of the s pe ci al circum s t ance s form s
the b as i s of the c ontr act or where from the f act s of the ,
'
c as e it c an b e inferre d th at the p artie s i n t en d e d t h at it
s hould d o s o it be come s an implied term of the c ontr act
,

th at wh at may b e c alle d the indire ct or more remote d am

a ge s if an y re s ulting from s uch s pe ci al circum s t ance s s h all
, , ,
”
be p ai d for .

See note s t o Ha dley v B axend ale in Smith L C 1 2 t h

f; B riti sh C olumbi a etc CO v Ne t
. .

e d 1 9 1 5 pp 5 5 4 f
.
,

. . . ., . .
, ,

t l es h i p 1 8 68 L R 3 C P 4 9 9 H orne V Midl and R y Co

, ,
. . . . . . .
,

1 8 73, L .R . 8 C .P . 1 31 , 5 R .C. 5 0 6.

As to the me asure of d ama ge s for n on acc ept anc e s e e -

§ 8 2 A s to the me asure of d am a ge s for non deliver y Of

,

. -

go od s where there i s n o av ail able m arket s e e E lbinger A c

tien Ges ell sc h af f
,

-
t v Arm s tron g 1 874 L R 9 Q B 4 73 2 3 R . .

C 5 5 1 ; H ydr aulic E n gineerin g C o V M cHaf f

. . .
, , ,

. i e 1 87 8 4 Q . .
, ,
.

B D
. . R C 5 5 8 se e al s o 83 . . .

A s t o d am a ge s for bre ach of w arr anty se e Smith v , .

Green 1 8 7 5 1 C P D 9 2 2 3 R C 5 66; Co i n t at v M yh am
, ,
. . .
,
. . .
‘

[ 1 9 1 3 ] 2 K B 2 2 0 Stein a cker v Squire

. 1 9 1 3 30 O L R 149 . , ,
. . . ,

1 9 D L R 4 34 ; Merrill V W addell 1 9 2 0 4 7 O L R 5 7 2 5 4
. . . . , ,
. . .
,

D L R 1 8 ; s e e al s o § 85
. . . .

In Ofi t ar i o it i s provide d by the Judic ature Act R S O. ,

. .

1 9 1 4 c 5 6 as follow s
,
.
,

34 Intere s t s h all be p ay able in al l c as e s in which it

.

i s n ow p ay able by l aw or i n which it h as b een u s u al ,

for a j ury t o all ow it .

35 On the tri al of an y i ss ue or on an y ass e ss

.
,

ment of d am ag e s up on an y de bt or s um c ert ain p ay , ,

a ble by virtue of a written in s trument at a time cer

-

t ain intere s t may be allowe d from the time when the

,

debt or sum be c ame p ay ab le .

( 2 ) If s uch debt or su m i s p ay able otherwi s e th an

by virtue Of a written i n s trument at a time cert ain i n ,

t e r e s t may b e allow ed from the time when a dem and

Of p ayment was m ade in writing informing the debt or ,

th at intere s t w ould be cl aimed from th e d ate of the -

dem and .
 5 8 6. I NT E R E S T ON S PE C IA L D AMAGE S . 151

( 3) In action s for the c onver s i on of good s or for tre s

p ass d e boms asp or tatis the j ury may give intere st i n
’

the n ature Of d am a ge s over an d ab ove the v alue Of

,

the
good s at the time of t h e c onver si on or s eizure an d i n ,
'

acti o n s on p olicie s of in s ur ance may gi ve intere s t O ve r

an d ab ove the m one y rec over able there on .

( 4 ) Unle ss other wi s e ordered by the court a ver d ict

or j udgment s h al l be ar intere s t from the ti me Of
,

the
rendering of the verdi ct or of gi vin g the j ud gme n t
, ,

notwith s t anding th at the entry of j ud gment s h all h ave

b een s u sp ended by an y pr o cee di n g i n the acti o n includ
i n g an app eal .
 C HAP T E R I" .

S UP PL E ME NTAR Y PR OV I S I ONS AND D E F I NI TI ONS .

It s e em s c onvenient for the purp o s e Of re ady reference

, ,

to g athe r in thi s fin al ch apter the v ari ou s gener al pr ovi sl o n s

which in the s t atut e appe ar under the he ading S up p l emen
“

t ary as well as the definiti on s whi ch in the Unite d Kin g

d am ar e c ont aine d in s 62 of the St atute but in m o s t Of
, ,

. the ,

provi nce s of C an ad a ar e c ont aine d in s 2 . .

In th e United Kin gdom an d in Ont ari o the s t atute i s en

“
t itled An Act for c odifyin g the l aw rel at in g t o the S ale
of
”
Good s the s h ort title in the Unite d Kin gdom ( s 64 )
,
.

b eing the S ale of Good s Act 1 89 3 an d in Ont ari o ( 5 1 ) the , ,

.

S ale of Go od s Act 1 9 2 0 ,
.

The S ale o f Go od s Act being like the B ill s of E xch ange ,

Act a c ode the proper c our s e i s in the fir s t in s t ance t o e x

, ,

a mine the l angu ag e of th e s t atute an d t o ask wh at i s i t s

n atur al me aning u n i n fi uen c ed by an y c on s ider ati on derive d

from the pre vi ou s s t ate Of
,

the l aw An ap pe al t o e arlier .

de ci s ion s c an be j u s tifie d only on s p eci al ground s as for , ,

i n s t ance if a p r o vI S I o n of the c ode i s of doubtful imp ort or if

, ,

w ord s ar e found which h ave previ ous ly acquired a te chni c al

me aning or been u s ed in a s en s e other th an their ordin ary ‘

one .

B ank of E ngl and v V a gli an o [1 89 1 ] A C 1 0 7 at .

,
. . ,

pp 1 44 5 3 R C 69 5 at pp 7 2 8 9 ( B ill s of E xch an ge
.
-
,
. . ,
.
-

Act ) ; R obin s on v C an adi an P acific Ry C o [1 8 9 2 ] A

C 4 8 1 at p 4 8 7 ( Civil C ode Of
. . . .
,

L ower C an ad a )
In the Unite d Kingdo m the inte rpret ation s ecti on Of
. . .
,

the
“
S ale of Go od s Act ( s 62 ) b e gin s with the word s In thi s .

Act unle ss the c ontext or s ubj ect m atter otherwi s e r e

,
-

” “
quire s where as in Ont ari o the word s ar e s imply In thi s
,
”
A ct be c au s e in Ont ari o it i s provided by the Interpre t ati on
,

Act R S O 1 9 1 4 c 1 s s 2 an d 3 th at an interpret ati on

. . .

s e cti on or provi s ion in an Act s h all a pply e xcept in s o f

. .
, , , ,

ar

a s it

( a ) i s inc on s i stent with the intent or O bj ect of s uch Act ;

or
1 54 C H A P T E R I X S U PPLE M E NTA RY
. .

( f ) F ault s h all me an wr ongful ac t o r de f ault ;

[In the Unite d Kin gdom it i s p r ovi de d :
”
F uture go od s me an s good s t o b e m anuf acture d
or acquired b y the s eller after the m akin g Of t he
c ontr act of s ale .

Thi s definiti o n i s a l s o c ont aine d in On t s 7 ; U K

. . . .

s.
“
(h) Good s s h all include al l ch attel s per s on al othe r
th an thing s in ac ti on an d money ; an d s h al l i n
e l ude em b lement s indu s tri al growin g crop s an d
f
, ,

thin gs att ached t o or formi n g p art O the l and

Which ar e a gree d t o b e s evere d b e fore s al e or
under the c ontr act of s ale ;
[In the Unite d Ki ng dom it i s pro v ided
”
f
L ien in Sc otl and include s ri ght o re tenti on ] .

( i ) P l ainti f f sh all include a de fe n d ant c ounter

“ ”

cl aimi n g ;
[In the United Kingdom i t i s provi ded
P l ainti ff include s pursuer c ompl ainer cl aim an t
”
, ,

in a multiple p oindin g an d defend ant or defend

-
,

e r c ountercl aimin g ] .

“ ”
( j ) P roperty s h all me an the gener al property in
good s an d n ot merely a s pe ci al property ;
”
(k) Qu ality of go od s s h all include their s t ate or
c onditio n ;
”
( 1 ) S ale s h all include a b ar g ain an d s ale as well as
“

a s ale an d deli v ery ;

”
(m)
“
S eller s h all me an a per s on wh o s ell s or agree s
t o s ell good s ;
“
( )
11 Spe cific go od s s h a ll me a n good s identified an d
a greed up on at the time the c ontr a ct of s ale i s

m ade ;
(0 )
“
W arr anty S h all me an an a gre ement with re f
erence t o go od s which ar e the s ubj ect of a c on
tr act of sale but c oll ater al t o the m ain purp o s e
of such c ontr a ct the bre ach of which give s ri s e
,

t o a cl aim for d am ag e s but not t o a right t o r e

,

j cet the good s an d tre at the c ontr act as r ep ud «

i at e d .
 C H A P T ER I X DEF I NI TI O N S
. . 1 55

[In the United Kin gdom thi s d efiniti on appl i e s only

t o E ngl and an d Irel and A s re g ard s Sc otl and it i s
.
,

provided th at a bre ach of W arr anty s h al l b e deeme d t o

b e a f ailure t o perform a m ateri al p art ofthe c ontr ac t ]
The S ale of Good s Act ( On t . s. 2 ; U.K . s. 62 ) provide s
2. A thing s h all be deemed t o be done in good
f aith within the me aning of thi s Act when it i s in
f act done hone s tly whether it be d one ne gli gently or
n ot .

( 3) A per s on s h all b e de emed t o be in s olvent wit hi n

the me anin g of thi s Act wh o either h as c e as ed to p ay
,

h i s debt s in the ordin ary c our s e of bu s ine s s or c an n ot

p ay hi s debt s as they b ec o me due .

[I n the United Kin gdom the followin g w ord s ar e

a dded at the end Of s ub s 3 —

.

Whether he h as c ommitted an ac t of b ankruptcy or

not an d whether h e h as bec ome a not our b an k rupt
or not .

( 4 ) Go od s s h all b e deeme d t o b e in a deliver able

”
s t ate within the me aning of thi s Act when they ar e i n
s uch a s t ate th at the buyer would under the c ontr act

be b ound t o t ak e deli very of them .

The S ale of Good s Act ( On t . s. 5 4 ; U.K . s. 55 ) provi de s

54 . Where an y ri ght duty or li ability w o uld a ri s e
under a c ontr act Of
,
,

s ale by implic ation of l aw it may be ,

ne g ative d or v aried by e xpre ss a greement or by the

c our s e Ofde alin g betw een the p artie s or by u sage if t h e , ,

u s age be s uch as t o bind b oth p artie s t o the c ontr act .

The S ale of Good s Act ( On t s 5 5 ; U K s 5 6) provide s

. . . . .

5 5 Where by thi s Act an y referenc e i s m ade to a

.

re as on able time the que s ti on wh at i s a re as on abl e

,

time i s a que sti on of fact .

The S ale of Go od s Act ( On t s 4 6; U K s 5 7 ) p rovide s

. . . . .

5 6. Where an y ri ght duty or li ability i s decl ared by

,

thi s Act it may unle s s otherwi s e by thi s Act provided

, , ,

be enforced b y acti on .
1 56
. C H A P T ER I X S U PPLE M E NTA RY
. .

The S ale of Good s Act ( On t s 5 7 ; U K s 5 8 ) provi de s . . . . .

5 7 . In c ase of a s ale by aucti on

( a ) where go od s ar e put up for sale in l ot s e ach lot
f
i s p ri ma ac i e deemed to be the s ubj ect Of
,

s ep ar ate c ontr a ct o f s ale ;

( b ) a s ale i s c omplete when the aucti oneer announce s

i t s c ompletion by the f all of the h ammer or in
an y other cu s tom a ry m anner ; a n d until s uch an

n o un c e m en t i s m ade an y bidder may retr a ct h i s

b id ;
( 0 ) Where a s al e i s n ot notified to be s u b j ect t o a
ri ght t o bid Ou beh alf of the s eller it s h al l not
_ ,

b e l awful for the s eller t o bid him s elf or to em

pl oy an y p er s on t o bi d at s uch s ale or for t h e ,

a ucti one er knowin gly t o t ake an y b id from the

s eller or an y s uch p er s on ; an d an y s ale c o ntr a

v e n i n g thi s rul e may b e tre ate d as fr aul ul en t by

the b uyer ;
( d ) a s ale may b e n otifie d to b e s ubj e ct t o a re s erve d
or up s et pric e an d a ri ght t o bid may al so be r e
s erve d expre s s ly by or on beh alf Of
,

the s eller ;
( 6) where a ri ght t o bid i s expre ssly re s erve d but n ot ,

otherwi s e the s eller or an y one per s on on hi s

, ,

beh alf may bid at the aucti on

,
.

If at a s ale of good s by auc ti on tw o or more intending

buyer s wi th the obj e ct Of kee p i n g d o wn the price a gre e
‘

, ,

th at they will not bid a g ain s t e ach other but th at one of

. ,

the m only s h all bid an d th at the g o od s b ought b y him s h all

,

be s h are d between them th at a gre ement i s n ot unenforce

'

a ble as bein g a g ai n s t p u bl i c p olicy .

R awling s V Gener al Tr a din g C o

. [1 9 2 1 ] W N 2 3 .
,
. . ,

C A rever s ing [1 9 2 0 ] 3 K B 30
. ., . .

T here i s nother k indred m atte r in c onnecti on with

a

which the c ommon l awcourt s t ook a s tricter V iew th an the

c ourt s of e quity n amely the employment Of a pu f fe r at an
,

a ucti on B ut thi s c on fl ict w as ende d by the S ale of L and by

.

Auction Act 1 8 67 which provide d th at the c ommon l aw

, ,

rule s hould pre v ail ; an d the provi si on s of th at s t atute h ave

158 C H A P T ER I X S U PPLE M E NTA RY . .

sub - s . 2of the Ont ari o s e cti on b eing omitted an d the fol ,

l owin g b ein g sub S S 1 an d 5 -

.

61 . The rul e s in b ankruptcy rel ati ng to c on

tr a ct s of s ale s h all c ontinue t o apply theret o n ot wi t h ,

s t anding anything in thi s Act c ont aine d .

( 5 ) N othin g in thi s Act s h all prejudic e o r af fe ct the

l andlord s ri ght of hyp othe c or s eque s tr a ti on for rent
’

in S c otl and .

In Ont ari o t he S al e of Go od s Act pr ovide s

5 9 . The foll owin g en a ctment s ar e repe aled n amely
Se cti on 1 2 Of The St atute o f
,

F r aud s b ein g ch apte r

1 0 2 of the R evi s e d S t atute s Of
,

Ont ari o 1 9 1 4 ;
Secti on s 9 1 0 an d 1 1 Of
,

The F actor s Act being ch ap

ter 1 37 of the R evi s e d St atute s Of
, ,

Ont ari o 1 9 1 4 ;
but s uch rep e al s h all not af f
,

e ct anythin g d one or
c onferre d or an y ri ght title or intere s t a gre e d up
on before the c ommencement o f
, ,

thi s Act or an y
le g al proce eding s in re s p ect of su c h ri ght title ,

intere st .

In the Unite d King dom the c orre s p ondin g s e cti on ( s .

re pe al s s ubj e ct t o s imil ar provi s o an Act a g ain s t B roker s

, ,

( 1 J ac 1 c .
,
s s 1 5 an d 1 6 ( c omm only cite d as s s 1 6 an d
. . .

1 7 ) of th e St atute of F r aud s s 7 of L ord Te n t e r d en s Act

’
.
,

( 9 Ge o 4 c S S 1 5 of the Merc antile L aw Amendment -

( Scotl and ) Act 1 8 5 6 an d s s 1 an d 2 O f

. . .
,

,
the Merc antile L aw
,
.

Amendment Act 1 85 6 ,
.

In the Unite d Kin gdom under s 63 of the S ale of Go od s

Act the s t atute c ame int o Oper ati on on the 1 st Of
.
,

,
J anu ary ,

1 894 . In On t ari o under s 60 the s t atute c ame int o op er

,
. ,

ati on on the 1 s t of July 1 9 20 ,

.
 I ND E "
” “
About ,more or les s 1 0 1 ,

Accept ance ,

Under St atute of F r auds 2 0 2 4 2 5 , , ,

I n perform ance of contr act 2 4 1 1 0 , ,

D uty of buyer to a ccept 9 5 ,

Opp ortunity to ins pect b efore accepting 1 09 ,

E fi ec t of accept ance 1 1 0 1 1 1 , ,

R efu sa l of b u y er to a ccept 1 1 2 ,

if refu sa l wrongful 1 1 3
f
,

See D amages or n on ac c ep tan c e -

Action de fi ned 1 5 3
, ,

Mode of enforcing ri ght 1 5 5

Acti on s f
,

o r bre a ch of w arr anty for n on ac cept an c e for ,

-
,

non delivery see D amages

-
,

Action s for the p rice for sp ecific performance

f
, ,

See P ri c e ; S p eci fic p er or man ce

Agent for s al e 4 6 ,

0
See F ac tor s A c ts ; Ti tl e to good s who can gi v e ,

A greement to s ell
D i stin gui shed f
,

rO m sa le 6 7 30
f f
, , ,

See Con tr ac t o S ale ; P assi n g o p r op er ty

App arent owner or agent 4 6 5 5 61 , , ,

See F ac to r s A c ts ; Ti tl e t o good s who c an gi ve

App ropri ati on Of
,

good s to contract 4 0
f
,

See P assi n g o p r op er t y
Asc ert ained good s 33
f
,

S ee S p ec i fic o r as c ert ai n ed go od s ; P as s i n g o p r op er ty
Auction s al e by 1 5 6
, ,

E ach lot a s ep ar ate contr act 1 5 6 ,

R etra cting bid 1 5 6 ,

S al e without r eserve 1 5 6 ,

S ale subj ect to re served bid 1 5 6 ,

B id s by s eller or ag ent 1 5 6 ,

Agreement not to bid ag ain st e ach other 1 5 6 ,

E mployment of p ufi ers 1 5 6 1 5 7 , ,

S ale of l and by auction 1 5 7 ,

B ankruptcy r ule s in . 1 5 8
,
1 60 I N DE "

B argain le see S al e
an d sa ,

B art er or exch ange 1 5

B ill of
,

l ading
-

D efinition 5 1 ,

R e s erving right of di sp o sa l 4 3
E ff
,

ect of tr an sfer 5 2 5 3 5 4
Ef f
, , ,

ect on s top p ag e in tran si tu 1 2 5 .

Good s not s hipp ed 5 3 5 4 5 5 , , ,

Ri ght t o su e on contract 5 3 5 4 5 5
“

'
, , ,

S ee F ac t or s A c ts ; Ti t l e t o good s wh o c an
f
,

B ill s o L adin g Act 5 3 , 0

B ill s of S ale an d Ch attel Mortg a ge Act 5 7 60 , ,

B uyer 7 ,

P ropriet ary remedies 1 1 4

f
,

P er s on al remedie s s ee D amages o r n o n d el i ver y ; D amages

f f f
-
,

or br eac h o war r an ty ; S p ec i fic p er o r man c e

C ap acity of p ar ties ,

G overned by the l aw of contra ct 7 ,

L un atic s 7 ,

D ru n k en p e rs on s 7 ,

Inf ant s or mino rs 8 ,

Cavea t mp tor 9 0 9 1 9 2
e , , ,

Ch attel mort gages 60 61 , ,

Cho se in action ,

Not included in good s 1 1 ,

No r under St atute of F r aud s 2 0 ,

I n the United St ate s 2 0 . 2 1 .

C i f ( cost in sur ance an d freight ) 9 6

. . .
-

, ,

Obli gation s of the p artie s 9 6 9 7 , ,

St atu t e applic able only mu tati s mu tan d/is ,

97
notice to en abl eb uyer to in sure 1 0 7 ,

ri ght of buyer to ex amine good s 1 0 8 ,

D am a ges for non delivery 1 4 0

,
-
,

Code rule of c on s truction for 1 5 2

, ,

Codific ation of l aw of sale of good s ,

In t h e United Kingdom 1 ,

I n C an ad a,2 4 ,

I n B riti sh dominion s 3 ,

In t h e United St ate s 4 5 , ,
1 62 I N DEX

D am ag e s for non accept ance 1 34

-
,

Ch arge for cu stody of good s 1 1 3 ,

Wh en no action for price 1 32 ,

When alternative remedie s 1 34 ,

F orbe a r ance to del i ver on reque st 1 35 ,

Meas ure of d am age s 1 35 1 36 1 4 9

, , ,

I f the re i s no av ail able m arket 1 36 1 37 , ,

Seller mu st mitig ate hi s lo ss 1 36 ,

L o ss of p rofit s ,when recover able 1 37 1 38

D am a ge s may amount to w
, ,

hol e p ri ce 1 37 ,

See A c c ep tan c e
D am ag e s for bre ach of w arr anty 1 4 5 ,

Me asure of d am ag e s 1 4 6 1 4 9 1 5 0
, , ,

D iminution in v alue 1 4 5 1 4 6
E ff
, ,

ect of a ccept ance of good s 1 1 1 ,

B uyer u nder duty to i nsp ect good s 1 4 7

an d mitigate d am a ge s 1 4 7 ,

G ene ral d am a ge s for bre ach of w arr anty ,

148
only if p rop ert y h as p ass ed 1 4 8 ,

See Warr an ty; D a mag es sp eci al ,

D am a g es fo r non deli very 1 39

-
,

Me asure of d am age s 1 39 1 4 1 1 4 9
, , ,

I f no av ail able m arket 1 5 0 ,

I f time for deliv ery not fixed 1 39 ,

I n c as e of anticip atory bre ach 1 39 ,

I f p r l c e has been prep aid 1 4 0 ,

In c as e of c i f contract 1 4 0
. . .

B uyer mu st miti g ate d am

,

a ge s 1 4 1 ,

Sub sequent ch an ge in v alue of good s 1 4 2 ,

in rate of exch ange 1 4 2 ,

D am a ge s ass e ss ed by th e p artie s 1 4 4 ,

See D eli very ; D amag es sp ec i al ,

D am a ge s s p eci al 1 4 8
, ,

Rule s in H adley v B axend ale 1 4 9

. ,

Knowledge of s p eci al circums t ance s 1 4 9 ,

forming b asi s of contr act 1 5 0 ,

Otherwi s e l o ss of sub contr act excluded 1 4 3

-

an d pl ainti ff
,

not limited by s ub contr act -

,
1 4 3,
 I N DEX 1 63

D am a ge s , pe ci al c on ti n u ed
s ,

Sp eci al d am age s for bre ach of w arr anty 1 4 8

irre s pective of p ass i n g o f
, ,

p roperty 1 4 8 ,

D am age s for non delivery 1 5 0 -

,

D eliver able st ate good s in 34 97

, , ,

D elivery ,
D efinition , 9 5
E ss enti al to gift or pledge 31 ,

u nl e ss gi ft by deed 31 ,

Not es s enti al to s ale 31 ,

On app rov al or tri al 36 ,

Time of the e ss ence 8 0 ,

Concurrent with p ayment 9 5 ,

unle ss othe r wi se a greed 9 6 ,

C i f . contract 9 6
. .
,

Mode an d pl ace of d elive ry 9 7 ,

Good s in po ssess ion of t h ird p a rty 9 7 ,

Time of delivery 9 8
if
,

no time mentioned 9 9 ,

as required 9 9 ,

On b u y e r s ship or on c ar 1 00
’
,

Wrong qu antity delivered 1 0 0 ,

Slight l atitude allowed 1 0 1 ,

” “ ”
More or le ss ,
about 1 01 ,

Mixed with other good s 1 00 1 0 1 , ,

In st alment delive rie s 1 02 1 03 , ,

Acquie scence in non delivery 1 0 4 -

,

Sendin g of good s to buyer 1 05 ,

D elivery to common c arrier 1 0 6 ,

R e as on able contr a ct wi th c a rrier 1 0 6 ,

ri sk of lo ss 1 0 6
H ow f
,

ar c arrier i s buyer s agent 1 0 6 1 0 7

’
, ,

N otice to en bl e buyer to in sure 1 0 7

a ,

B uyer s ri ght to ex amine good s 1 0 8 1 0 9

’
, ,

Ac cept ance of good s ,

under S t atute of F raud s 2 0 2 4 , ,

in perform ance of contract 2 4 1 1 0 ,

Ef f
,

ect of accept ance 1 1 1 ,

1 64 I N DEX

D elivery , c o n t i n u ed

I n c as e of refu sal to accept 1 1 2 ,

if refu sal wr ongful 1 1 3

'

P a rt delivery efi ec t on li en 1 1 9
, ,

F orbe ar ance t o deliver on re qu es t 1 35 ,

Delive ry order effect of tr an s fer 1 2 6

, ,

D es crip ti on s ale b y 8 7
, ,

G ood s mu st corr es p ond with de s crip tion 8 7 8 8 .

Go od s of merchant ab le qu ality 9 1 ,

B uyer s ri ght to in s pect 1 08 1 0 9

’

f
, ,

D e s tru cti on or deterior ation s ee R i s k o l oss ,

D etinue a ction of 1 1 4
, ,

D i sp o sal right of
, ,

D elivery wi thout re se r v at i on 4 1
R e s erv ation o f
,

42 ,

p re se r ve s l ien 1 1 9 ,

D oc umen t of ti t l e ,

D efi nition s , 5 0 5 1 62 1 5 3
Ef f
, , ,

ect of tran s fer 5 2 5 3 1 2 4 1 2 5 1 2 6 , , , , ,

P oss e ss ion of docum ent 5 5 5 6 , ,

S eller rem aining in p o ss e ss ion 5 7 ,

B uyer obt aining po s s ess ion 5 7 ,

H ow tr an s ferred 66 ,

Negoti able document s in United St ate s 67 ,

D elive r y order tr an s fer of 1 2 6

, ,

See F ac to rs A c ts ; Ti tl e t o good s who can gi ve ,

D run ken p er son s contr act of 7

, ,

Necessa rie s 1 0 ,

E arne st 2 6
,

E mblement s 1 1 ,

E ss e n ce of contr act ,

S tipul ation as to ti me 7 9 ,

Condition 7 6 ,

E stoppel ,

A s to v alidity of sale 4 6 5 5 61 , , ,

B y re as on of s t atem ent of f act 7 3 ,

See F ac tors A c ts ; Ti tl e t o go od s who c an g i ve ,

E x amin ation of good s ,

B u y er s opportunity to in spect 1 0 8 1 0 9
’

, ,
1 66 I N DEX

F ungible good s 39 ,

F uture good s 1 2 38 , ,

Agreement to s ell 38 ,

G en e r i c or un as cert a ined good s 38

x
,

Undivided sh are of s p ecific good s 39 4 0 , ,

App rop ri ation to the contr act 4 0

f
,

See P assi n g o p r op er ty
G if t of ch attel s 31 ,

Good f aith ac t done in 1 5 5

, ,

G ood s de fi ned 1 1
'
, ,

Under St atute of F r aud s 1 2 2 0 2 2 , , ,

E xi s ting an d future goo d s 1 2 ,

Sp ecific or ascert ained good s 1 2 33 , ,

Generic or un ascert ained go od s 1 2 ,

F ungible good s 39 ,

Undivi ded s h are of s pecific good s 39 4 0 , ,

R ight s of p artie s a gain s t the good s 1 1 4 ,

l nf e ct s contr a ct s of 8
, ,

R atific ation in writing 8 ,

Inf ant s R el ief Act 8

’
,

When r atific ation not required 9 .

,

New p romi s e after m aj ority 9 ,

Nece ssa rie s 1 0 ,

Negoti able in s tru ment or b ond 1 1 ,

In solvency 1 1 8 1 5 5
, ,

L ien or ri ght of retention 1 1 8 ,

Stopp age in tr an s itu 1 1 9 1 2 0

f
, ,

In s pection s ee E xami n ati o n o good s

,

I n st alment s delivery in 1 0 2 1 03
, , ,

I nteres t or s peci al d am ages 1 4 8 ,

Intere s t on p ric e in Scotl and 1 33 ,

St atutory p rov i sions as to intere st 1 4 8 1 5 0 , ,

See D amages S p ec i al ,

I nterpret ation cl au s e 1 5 2
f
,

J a s d i sp o n en d i , se e D i sp os al , ri ght o

L atent defect s 8 9 9 1 9 4 , , ,

L aw merch ant applic able to sale of goods

, ,
,
72 7 9
L ien or r i ght of retention 1 1 6 1 1 7 , ,

L ien dependent on po ss ess ion 1 1 7 ,

l ast by des truction of good s 1 1 7 ,

 I N DEX 1 6:

L ien or ri ght of r etenti on ,

c o n ti n ued

When ri ght ari s e s 1 1 8 ,

H ow right i s los t 1 1 9 ,

delive r y of p art 1 1 9 ,

Contract of s ale not re s cinded 1 2 7 ,

R e s erv ation of ri ght of di s po sal 1 19

Ef f
,

ect of obt aining judgment 1 1 9 ,

’

Tran s fer of document of title 1 2 5 1 2 6 , ,

Sell er holding as buyer s b ailee 2 5 1 1 8 ’

, ,

See R e s al e by s el l er
f f
-

L ord Ten t e rd e n s Act s ee I n a n ts ; S ta t ut e o

’
F r a ud s

f
,

L o s s of good s see R i s k o l o ss
‘

L un atics contr act s of

,

,
7 ,

Necessarie s 1 0 1 1 , ,

M arket overt sale in 4 7 4 8

, ,

No t applic able in Ont a rio 4 7 ,

Merc antile agent 5 8 63 , ,

S ee F ac to rs A c ts
Merc antile L aw Amendment Act
B ill s of l ading an d w arehou se receipt s 5 1 ,

D ocument s of title 62 ,

T ran s fer of bill s of l ading

f
,

Minors se e I n an ts
,

M i s r c p r e s en t a t i o n , se e R ep r es en ta ti on
Mi st ake
R ule s
of l aw as to 7 2 ,

A s to exi stence of good s 1 3 ,

A s to identity of other p a rty ,

49
” “ ”
More or le ss about 1 01
, ,

Nece ssa rie s 1 0 1 1 , ,

Negoti able document s of title 5 0 ,

In the United St ate s 67 ,

Nemo d a t q uo d n on h abe t, 4 6
See Ti tl e t o go o d s , wh o gi v e
f
can

Non accept ance A c c ep tan c e ; D mages c tan c e

f
-
,
se e a o r n o n a c ep
-

Non d el i v erv
-
see D el i ver y ; D a mages or no n -
d el i v er y
O r al e v idence ,

Subj ect to St atute of F raud s ,

17
R es ci s s ion of wri tten contr act ,
23
1 68 I N DEX

Or al evidence c on ti n ue d
,

V a ri ation of contr act 2 3 ,

W aiver of condition 8 2 ,

Osten s ib l e owner s hip or agency 4 6 5 5 61

f
, , ,

See F ac tor s A c ts ; Ti tl e o go od s who c an , gi v e

P artner ship l aw of , ,

In the United Kingdom ; 4

In C an ad a 4 ,

P art p aym ent 2 6 ,

P as sm g of prop erty ,

Imp o r tance of the q ue stion . 32

Specific or as cert ained good s 33 ,

Govern ed by i ntention of p artie s 33 ,

R ul e s for as cert a ining intention 33 ,

E x ample s of applic ation of rule s 35 36 , ,

Uncondition al contr act 34 ,

Good s not in deliver able st ate 34 ,

Good s to be weighed me asured etc 34 , ,

.
,

Act to be done by the s ell er 34 36 , ,

C ondition prec edent or s u s pens ive 36 ,

Condition s ub s equent or re solutive 37 ,

Un as cert ained an d future good s 38 ,

Undivided sh are of s p ecific good s 39 4 0 , ,

F un gible g oo d s 39 ,

Good s in unfini shed st ate 4 0 ,

App rop ri ation of good s t o contr act 4 0 ,

Intention to tr an s fer p rop erty 4 1 ,

D elivery to c a rrier 4 1 ,

Authority t o appropri ate 4 2 ,

When app rop ri ation complet e 4 2 ,

R e s e r v ation of ri ght of di s po s al 4 2 ,

H ow ri ght i s res erved 4 3 ,

B i ll of l ading in n ame of s eller 4 3 ,

F o b con t r act 4 4
. . .
,

Tr an s fer to third p arty 4 5 ,

Action for p rice of good s 1 31 1 32

f
, ,

See Ti tl e o go od s wh o c an gi ve ,

P ayment ,

Time not of the e ss ence 7 9 ,

1 70 I N DE X

Qu ality of go od s c on ti n wed ,

L atent defec t s in sa le by sample 8 9 ,

if buyer h as ex amined good s 9 1 9 4 , ,

R e aso n able time a que stion of f act 1 5 5 ,

R eceipt of g ood s ,

Under Sta tute of F raud s 1 9 2 5

‘

, ,

S eller holding as buyer s b ail ee 2 5 ’

,

R epe al of st atu t e s by S ale of Good s Act 1 5 8 ,

R epre s ent ati on

D i stingui shed from term of contr act 7 2 73 , , ,

F r aud ul ent mi s rep re s ent ation 73 ,

Innocent mi s rep re s ent ation 7 3 ,

R e s ci ssi on 7 3 7 4 7 5
, , ,

R e sale by s eller 1 1 6 ,

Title of s econd buyer 1 1 5 1 1 6 1 2 7 , , ,

G ood s of p eri sh able n ature 1 2 7 ,

D am age s p ay able by origi n al buyer 1 2 7 ,

R e s ci ss ion of o ri gin al contr a ct 1 2 7 1 2 8 , ,

R ight s of origin al buyer 1 2 8 ,

R e s ervation of right of di sp os al 4 2 ,

Re s ci s sion of contr act ,

F o r mis rep re s ent ation 7 3 ,

L imit ation s of right 7 4 7 5 , ,

I n c as e of lien or stopp age in tr an situ 1 2 7

r e sale by s eller 1 2 8
-

R e s olutive condition 37 38 , ,

R es p er i t d o mi n o 1 4 ,

R etention r ight of s e e L i en
, ,

R i sk of lo ss ,

Good s p eri shing before contr act 1 3 ,

P arti al lo ss or deterior ation 1 3 1 4

, , ,

P eri sh able good s 1 0 8 ,

Good s p eris hing after contract 1 4 ,

R es p eri t d omi n o, 1 4
P arti al los s or deterior ation 1 5 ,

In c as e of delive ry to c arrier 1 5 ,

D ete r ior ation incident t o tr an s it 1 5 1 0 8 , ,

In c as e of delive ry to c arri er 1 0 5 1 0 6 , ,

R e as on abl e contr act with c arr ier 1 0 6 ,

 I N DEX 1 71

R i sk of lo ss c on ti n ued
,

N otice to en able buyer t o in sure 1 07 ,

L ien lo s t by de struction of good s 1 1 7 ,

S al e
D i s tin gui s hed fro m a greement to s ell 6 7 30 , , ,

B arga in an d sal e 31 1 31 , ,

under St atute of F r aud s 1 9 ,

S al e an d delivery 31 1 31 , ,

S ale or return 36 37 38 , , ,

S al e on approv al 36
f f
,

See Con tr ac t o sal e; P assi n g o p r op er ty; A uc ti on sal e ,

by; D esc r i p ti o n sal e by; S amp l e s al e by , ,

S ale of G ood s Act s ee Cod i ficati on ,

S ample s ale by 8 7 8 9
, ,

Good s mu st corre s p ond wi th sample 87 8 9 ,

Opportunity to comp are with sampl e 89 ,

F re edom fro m l atent defect s 8 9 ,

S eller 7,

Unp aid s el l er 1 1 5 ,

R emedie s ag ain st the good s seeL i en ; S tep p age i n t ran si tu ; ,

Re s al e

f f
-

P er s on al remedie s ,s ee P r i c e, ac ti o n o r, D amages or n o n

c ep tan c e
ac

Short title o f st atute 1 5 8 ,

Speci al d am age s see D amages sp ec i al

, ,

Spec ific or ascert ained good s

D efinition of s pecific 1 3 33 , ,

A s cert ained good s 33

f
,

See P assi n g o p r op er ty
S p ecific p erform ance 1 4 4 ,

No t generally order ed as to ch attel s 1 4 4 ,

D i s cretion of court as t o 1 4 4 ,

P rop erty need not h ave p as s ed 1 4 5 ,

S tatute of F rauds ,

Section four 1 7 1 8 , ,

Section se venteen 1 8 1 9 , ,

Good s wa re s an d merch andi s e 1 2 2 0 2 2

, , , ,

L ord Ten t erd en s Act 1 9 ’

,

P rice an d v alue 1 9 2 3 , ,
1 72 I N DEX

S t atute of F raud s c on ti n u ed ,

S al e of Good s Act 1 9 ,

E xecutory contr ac t 1 9 2 1 2 3 , , ,

Contract for work an d l abour 2 1 ,

Al t eration in l an guage 2 2
Ef f
,

ect of non compli ance 2 3 -

,

Or al wa iver or re s ci ss ion 2 3 ,

St atut e mu st be ple aded 2 4 ,

Acceptance an d receipt 1 9 2 0 2 4 2 5 , , , ,

R ec eipt by common c arrier 1 0 6 1 0 7 , ,

E arn es t or p a rt p ayment 2 6 ,

Note or memor andum in writing 1 9 2 0

contents an d suf f
, ,

iciency 2 7 2 9 ,

s ign atur e 2 3 2 8 2 9 , , ,

authority of a gent 2 8 2 9 , ,

Stolen good s sale of 4 9 5 0

, , ,

St opp a ge in tr an situ 1 1 6 1 1 9 1 2 0 , , ,

H i sto r y of the ri ght 1 1 9 1 2 0 , ,

NV h en right ar i s es 1 2 1 ,

D ur ation of t h e tr an s it 1 2 1 1 2 2 , ,

Mode of exerci sing ri ght 1 2 3 ,

C ontr act of sale not re s cinded 1 2 7 ,

Oblig ati on s of the c arrier 1 2 3 ,

Obli gation s of the s eller 1 2 4

Ef f
,

ec t of tr an sfe r of document of title 5 2 , ,

S al e or pledge b y buyer 1 2 4 1 2 5 1 2 6 , , ,

See R e sal e by s ell er

-

Subj e ct m atter of c ontr a ct s ee Go od s ,

Su s p ens ive condition 36 ,

Thief c annot give good title 4 9 5 0 , ,

S ale in m arket ov ert 4 7 4 8 , ,

Thing in action see Chose i n ac ti on

,

Ti mb r st an d i g 1 2
e
.
n
,

Time stip ul ation as to 7 9

, ,

Ti me of delive ry 9 8 9 9 , ,

Title implied condition as to 8 6 8 7

, , ,

Title t O g OOd S who c an give 4 6

' ‘

, ,

S al e by p er s on wi thout title 4 6
‘

Nemo d a t quad no n habe t , 4 6, 5 5

1 74 I N DEX

Wrra nty c on ti n ued

a ,

D i stin gui shed from rep res ent ation 7 2 7 5 , ,

D i st ing ui she d from condition 7 6 7 7

, ,

W arranty in S cotl and 78,

W arranty in the United St ate s 7 9 84 , ,

Remedy for bre ach of war r anty 8 1 8 2 8 3 , , ,

Implied w arr antie s 8 6

W arranty of
,

quiet p o ss es s ion 8 6 87
, ,

Wa rranty ag ain st encumb rance s 8 6 ,

W arranty of qu al ity or fitne ss 9 1

f f
,

S ee D amays a or br eac h o war r an ty

Work an d l abour contr act for 2 1
, ,