Term
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Definition
An executory contract involving the sale of goods where the parties agree that the delivery of the goods or the passing of title to those goods will occur on some future date after the contract was made. In the agreement to sell, the purchaser bought the car for $40,000 on May 15, but it was not to be delivered to its shop until May 28. |
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Term
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Definition
Under the Bills of Exchange Act, any negotiable instrument that is made payable to just “the bearer” or to “Cash.” Bearer instruments can be negotiated to a third party by simple delivery of the instrument alone. As the cheque was made payable to “Cash,” the defendant was able to take the cheque he stole to his own bank and deposit it to his account. |
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Term
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Definition
Under the Bills of Exchange Act, a specific (and most common) type of bill of exchange in which a party with a bank/credit union account (drawer) requests the bank/credit union (drawee) to pay a designated party (the payee) upon demand. After performing his services, the entertainer took the cheque that he received from the hotel to his bank and cashed it for the amount of $500. |
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Term
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Definition
A major term that is not actually expressed in the contract between the parties but which the law implies the parties would have agreed to. The plaintiff was able to make a case that the seller of the hiking shoes was in breach of the implied condition that the goods were durable for a reasonable period of time by showing that they had fallen apart a mere two weeks after she purchased them. |
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Term
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Definition
In contracts involving the sale of goods, the characteristic of those goods being acceptable for purchase to the reasonable person, after examining those goods, either for himself or for resale to a third party. The Sale of Goods Act make this characteristic an implied condition of any contract involving the sale of goods. The tinned peas were not considered to be of merchantable quality in that they were inedible; this did not become apparent to the purchaser until he got home. |
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Term
Negotiable instrument – (cheques and promissory notes)
Definition
Under the Bills of Exchange Act, a signed, written document (i.e. instrument) that is capable of having rights contained within it transferred (i.e. negotiated) from one person to another. We say a promissory note is a negotiable instrument because the payee can transfer his right to be paid by the maker to another party by delivering the note or endorsing and delivering the note to yet a third party; the third party now becomes the one who can look to the maker of the note for payment. |
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Term
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Definition
| In the context of negotiable instruments, the party to whom a cheque or promissory note is made payable at the time it was originally made. The payee in turn has the legal right to negotiate the instrument to a third party. The plaintiff signed a promissory note in the amount of $4,000 payable on demand to his sister; his sister was the payee and was entitled to demand payment at any time in the future. |
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Term
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Definition
| A specific kind of negotiable instrument in which the maker signs a promise in writing to another party (the payee) to pay a certain sum either on demand or on or before a certain date. Unlike cheques, they can call for the payment of interest as well and payments to be made by installments. As the defendant signed a statement saying that he would pay the plaintiff the sum of $5,000 “by no later than December 31, 2002,” he in effect signed a promissory note, not a mere IOU. |
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Term
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Definition
In a sale of goods contract, existing goods that are not specific, and have not yet been specifically set aside or earmarked for the purchaser since the contract was made. This designation is relevant for purposes of determining whether, in the absence of agreement between them, the buyer or the seller will bear the risk of loss should the goods be damaged or destroyed. Rule 5 applies to such goods. The twelve tires purchased by the taxicab company were unascertained goods at the time of the fire in that the retailer had not yet set them aside or invoiced them as belonging to the purchaser. |
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