Difference between revisions of "Contracts Overview"

{{REVIEWEDPLS | reviewer = [[Alison Ward]] |date= August 2018}}{{Consumer and Debt Law TOC|expanded = contracts}}

That said, some types of contracts '''must be in writing''', under requirements in the statute law (for example, contracts involving real estate). These include the [http://canlii.ca/t/8459 ''Law and Equity Act''] (see the sections on [[Mortgages and Foreclosure]] and the [[Recovery of Goods]]), the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''], the [http://canlii.ca/t/7vd0 ''Bills of Exchange Act''] (see the section on [[Contract Defences]]), and the [http://canlii.ca/t/8495 ''Personal Property Security Act''] (see the section on [[Security Agreements]]).  

Consumers are now protected against cut-off clauses in certain types of consumer contracts. For contracts governed by the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''], the law specifically says that consumers have the same rights against an assignee as against the original party who assigned the contract (called the “assignor”). The same protections apply for promissory notes (enforceable promises to repay a debt or loan) governed by the federal [http://canlii.ca/t/7vd0 ''Bills of Exchange Act''].

A number of '''terms are implied''' in various consumer and credit contracts by statute. For example, certain warranties and conditions are implied in consumer [[Sale of Goods Law|sales of goods]] and [[Leases|leases]] under the [http://canlii.ca/t/84c2 ''Sale of Goods Act''].

A number of statutes say that the additional implied terms or protections given to consumers by that law '''cannot be given up''' by a consumer, even if there is a term in the agreement that says the consumer waives the right to have that protection. That is, the consumer is protected from contracting out of certain rights. These statutes include the [http://canlii.ca/t/84mr ''Business Practices and Consumer Protection Act''], the [http://canlii.ca/t/7vh8 ''Interest Act''] and the [http://canlii.ca/t/84c2 ''Sale of Goods Act''].

=== Specific types of contracts and contract terms===

The words '''conditions''' and '''terms''' are often used interchangeably to refer to parts of a contract, but there is an important difference in their meaning. A '''condition''' is an essential term in a contract, a term that is so important that without it one or other of the parties would not enter into the contract. Sometimes the law (for example, the ''[http://canlii.ca/t/84c2 Sale of Goods Act])'' implies which terms are contract conditions. More likely, the contract is silent on categorizing terms in this manner.

This broad categorization can be important when there is a breach of the contract, as there are different remedies for breaches of contract warranties, as distinguished from other types of contract terms (such as contract conditions, discussed above). This is explained in the section on [[Contract Remedies]].

'''Estimates''' are a difficult area of the law. The case law suggests that whether estimates are binding depends on the intention of the parties to the agreement. The interpretation of an estimate can be complicated when the estimate is not for a specific figure, but is given as a range or in descriptive terms such as “standard price”. For a case that considers the principles of law governing estimates, see ''ABCO Diesel Ltd. v. Dolphin Delivery Ltd''. Note also that estimates are addressed in the ''Business Practices and Consumer Protection Act'', [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec4_smooth section 4(3)(c)(iii)].

The [https://www.canlii.org/en/bc/laws/stat/sbc-2004-c-2/latest/sbc-2004-c-2.html#sec17_smooth ''Business Practices and Consumer Protection Act''] and the [http://canlii.ca/t/52v92 Consumer Contracts Regulation] define a '''future performance contract''' as a contract for the supply of goods or services costing more than $50, where the delivery of the goods or performance of the services (by the supplier), or payment for either (by the consumer), is not made when the contract is signed. “Supply” is defined to include a sale, lease, assignment, etc. Future performance contracts do not include contracts for the supply of goods or services under a credit agreement if the goods or services have been supplied, and do not cover timeshare contracts. The ''Business Practices and Consumer Protection Act'' regulates future performance contracts.

The issue most often arises in the sale of used cars. Invariably, a car dealer’s sale contract has a waiver clause. The courts have said in a number of decisions that if the problem with the car is fundamental, the waiver of rights term in the contract will be interpreted very strictly against the seller. Often, the courts ignore the waiver clause and give the consumer a remedy. (See the section on [[Contract Remedies]].) One of the leading cases applying this principle is ''[http://canlii.ca/t/gbmfq Findlay v. Couldwell]'' (for more on this case, see the section on [[Unfair or Deceptive Practices]]).

See the sections on [[Contract Defences]] and [[Contract Remedies]] for more context on what information to collect from the client.

 

See the sections on [[Contract Defences]] and [[Contract Remedies]] for more context on solving the client’s problem.

 

* [[Contract Defences]]


* [[Opting Out and Cooling-off Periods]] 


* [[Contract Remedies]]


* [[Contracts Made by Minors]]


* [[Co-signing, Guarantees and Joint Debts]]


* [[Deposits in Consumer Transactions]]  
  

* [[Prepayment Rights]] 
  

* [[Sale of Goods Law]] 
  

* [[Unfair or Deceptive Practices]]