Difference between pages "Separating Emotionally" and "Contracts for Sale of Goods (11:III)"

From Clicklaw Wikibooks
(Difference between pages)
Jump to navigation Jump to search
 
 
Line 1: Line 1:
{{JP Boyd on Family Law TOC|expanded = separation}}
{{REVIEWED LSLAP | date= August 5, 2021}}
{{LSLAP Manual TOC|expanded = consumer}}


The previous chapter discussed the law about separation. This chapter talks about the emotional dimension of separation. The laws and the courts only deal with a narrow slice of all the things that go on when a relationship ends and often ignore the larger emotional and psychological issues. These issues, however, influence a couple's ability to work together and often dictate how a separating couple will go about resolving their legal problems.
Generally, consumers have no right to return goods or cancel a contract simply because they decide the goods are no longer wanted or needed. However, it is often only after the goods are purchased that damages or defects are discovered. In such cases, a purchaser may have a remedy if it can be shown that a term of the contract has been breached.  It may also be the case that the business has a refund policy of which the consumer can take advantage.


An understanding of the emotions involved in separation can help to reduce conflict and the cost of resolving the legal issues involved in separation. This chapter applies to both married and common-law couples, and will provide an introduction to separating emotionally, look at the grieving process that accompanies the end of a long-term relationship, and discuss how the emotional aspects of separation can impact on the resolution of the legal issues a couple might have to deal with.
This section outlines the protection that consumers have against the problems that may occur after a purchase has been made. To understand one’s legal rights, it is necessary to know the differences between terms, representations, and mere puffs.  


I. Introduction
== A. Identifying and Classifying the Terms of a Contract ==


Ending a long-term relationship, whether married or common-law, is not just a matter of packing your bags and walking out the front door. Separation stirs up incredibly powerful emotions that can take a surprisingly long time to work through; many counsellors liken these emotions to the grieving process that follows the death of a loved one. Chief among these emotions are love, anger, remorse and sadness, and separating couples often find themselves experiencing these emotions in a very intense manner and cycling though them over and over.
A term of the contract is a promise made by the manufacturer or seller regarding the character or quality of an article. It can be either written or oral. Written terms will generally be straightforward to identify. Whether an oral statement can be properly considered a term may be less obvious. Not everything said by the seller will be a term of the contract. To be a term, the statement must be a specific promise that makes up part of the contract.  


These emotions often wind up clouding a person's judgment. You can find yourself doing things and saying things you never thought you would, or doing things you promised you'd never do again. You can find yourself looking at your partner and wondering who the hell this person really is, and how can he or she be so different from the person you were together with for so long. Unrecognized and unmanaged emotions can take over the emotional and legal processes of separation like a runaway train and take you down tracks you never anticipated.
If a statement is not a term, it may be either a representation or a puff. A representation is a material statement of fact made to induce the other party to enter the contract. A puff is vague sales talk not meant to have any legal effect. For example, a statement that “This is a wonderful car” would be a puff and not meant to be taken literally as a contractual term (see 11:IV G. False or Misleading Advertising)


The emotions involved in separation are normal. Everyone experiences them, although we each process these emotions in our own way. From a lawyer's persepective, the key problems that must be processed in the midst of these distorted and confused feelings are:
Whether a statement is a term, representation, or puff affects the remedy available to the consumer: damages (see D. Remedies for Breach of Contract below), rescission (under a claim of misrepresentation; see 11:IV G. False or Misleading Advertising), or no remedy, respectively. For this Chapter, we are concerned with terms of a contract.


settling the legal issues that crop up at the end of a relationship;
If a statement is a term of the contract, it can be a condition, warranty, or innominate term. A well-drafted contract will characterize particular terms as conditions or warranties, though the wording used in the contract will not always be determinative ([https://www.bailii.org/uk/cases/UKHL/1973/2.html ''Wickman Machine Tool Sales Ltd. v L. Schuler A.G.'', [1974<nowiki>]</nowiki> AC 235]). The three types of terms are as follows ([https://www.bailii.org/ew/cases/EWCA/Civ/1961/7.html ''Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd'', [1962<nowiki>]</nowiki> 2 QB 26, [1962<nowiki>]</nowiki> 1 All ER 474] at para 49):
obtaining reasonable instructions from the client;
separating anger from the negotiation process;
separating anger from the litigation process; and,
ensuring that the conflict doesn't spill out onto the children.
The vast majority of couples can resolve their issues through negotiation or mediation, no matter how angry they are with one another. Where a couple simply cannot separate the emotional baggage of separation from the resolution of the legal issues that have come with the end of their relationship, ligitation may be inevitable.


Many studies have shown that mediation produces settlements that are better for both parties, better for the children, and last longer than the results of litigation. Mediation can help a couple to work through their individual emotional issues and can produce an agreement that isn't so much a legal contract as it is a moral contract. Parents especially tend to deal with each other, and with their children, with a lot less rancour following a mediated resolution of their problems.
=== 1. Condition ===


Litigation is sometimes necessary, even when a couple is capable of mediating: when a party threatens to flee with a child; where there is a history of abuse or where abuse seems imminent; and, where a party is threating to do something rash with family property. When litigation is provoked by emotions arising from the end of the relationship and isn't really necessary, then you can run into some serious and expensive problems...
A condition is a term that is so essential to the agreement that its breach is considered to be a substantial failure to perform the contract. A breach of a condition is said to go to the root of the contract. In other words, the breach is such that it deprives the innocent party of “substantially the whole benefit” of the contract. Breach of condition entitles the buyer to terminate any further obligations under the contract and sue for damages. The aggrieved party, if aware of the impending breach, could accept the repudiation of the other party and terminate the contract, ending all future obligations except for the damages that stem from non-performance. Or, the aggrieved party could not accept the repudiation, and may wait for the future breach to occur before pursuing damages (e.g., if they think that there is still a chance that the contract will be performed).


One or both people will adopt an entrenched and unreasonable position about things like the children and other family issues, sometimes a position that they would never have considered taking. Sometimes positions are adopted out of spite or vindictiveness.
=== 2. Warranty ===
The emotional tension will worsen, particularly when you see things you thought were long buried in the past put into an affidavit. There will be backstabbing, accusations and wounded feelings.
There is an increased risk of the children being used to goad the other parent, although sometimes unintentionally.
There is an increased risk of the alienation or estrangement of a child from a parent, and the permanent impairment of the child's relationship with that parent.
There will be many interim applications and the litigation may not be settled even with a trial. In circumstances like this, the litigation many never truly end, especially when there are children involved.
The litigation will cost an enormous amount of money, and you risk losing the equity in the family assets to court fees and legal fees.
At the end of the day, you risk being permanently unable to communicate effectively with your former partner. This can be a serious problem when children are involved.
As a result of all of this, it can be critical to get a grip on your emotions right out of the starting gate. While all of these emotions are common, natural and entirely understandable, failing to recognize and manage them can lead to disastrous short- and long-term consequences to your emotional well-being, your relationship with your children, your children's emotional well-being, and your financial situation. If you are having trouble managing your feelings and you have children, see a counsellor as soon as possible.


A. Parenting After Separation
A warranty is a term of the contract that is not so essential. A warranty must be performed, but its breach is not considered to go to the root of the contract. This meaning of warranty should not be confused with other uses of the word such as in “one-year maintenance warranty”. When a warranty is breached, the innocent party must continue to perform its own obligations under the contract but can sue for damages.
When a couple of have children, they must accept that they will remain a permanent part of each other's lives, whether they like it or not. A couple may no longer be partners but they will always be parents. The parental relationship does not end with the romantic relationship.


It is impossible to emphasize enough how important it is to always put the children first. This may sound a bit trite, but putting the children ahead of yourself can be an extremely challenging task when you are also trying to cope with the intense emotions involved in separation. It can be tremendously difficult to refrain from bad-mouthing your former partner to the children, "forgetting" to drop them off on time, and using them as a weapon.
=== 3. Innominate Terms ===


The Parenting After Separation program is available throughout British Columbia. In my view, all couples with children can benefit from this program, no matter how well or poorly you think you and your former partner get along. The PAS program can offer important advice about talking to your children about the separation, talking about your former partner with the children, and talking with your former partner in ways that avoid hurting and wounding and are focused on the children.
Innominate terms arise out of the common law, but unlike conditions and warranties, they are not mentioned in the ''SGA''. An innominate term is one that may be treated as either a condition or a warranty, depending on how severe the consequences of a breach turn out to be. Whether an innominate term is a condition or a warranty is for a judge to decide.  


Information about parenting after separation, including contact information for the different agencies that offer the PAS program, is available in the Children > Parenting after Separation chapter of this website. As well, some very good research papers and literature reviews about parenting after separation, the costs of high-conflict separation and other topics relating to child's well being and outcomes following separation can be found at the website of the Department of Justice. These papers are of a uniformly high quality and are well worth the read.


B. A Few Final Notes
I am not a psychologist, a psychiatrist or a counsellor. As a result this chapter should be read with a grain of salt as it is based on my observations of my clients' experiences and a healthy dose of common sense. For the same reason, you are cautioned that this webpage should not be used as authority for the propositions it sets out.


Finally, there are a ton of resources available to help you cope with the separation process and protecting the emotionally harmful aspects of the process away from your children. In addition to public programs, many counsellors specialize in helping people work through the emotional turmoil that often follows the end of a long-term relationship. Since counsellors are unregulated, anyone can hang a shingle saying that they offer counselling services. What you should be looking for are people with the designation of Registered Clinical Counsellor (RCC), Certified Canadian Counsellor (CCC) or Registered Psychologist (RPsych).
:'''NOTE:''' for certain terms the ''SGA'' specifies whether they are conditions or warranties. The SGA also implies some terms as conditions or warranties even if they are not expressly included in the contract (see Section C. Provisions of the Sale of Goods Act below).


The website counsellingbc.com offers a list of subscribing counsellors by area of practice.
== B. Determining if the Sale of Goods Act Governs the Contract ==
The BC Association of Clinical Counsellors also maintains a referral list of its members.
The BC Association for Marriage and Family Therapy has a referral list and helpful information about how to chose a counsellor.
Back to the top of this chapter.


II. The Grieving Process
The ''SGA'' applies to transactions that can be characterized as contracts for the sale of goods. Any transaction that is not for the sale of goods does not  receive the benefit of the ''SGA''. Hence, the subject matter of the transaction must be goods and the essential elements of a contract must also be present.


Many counsellors liken the process of emotionally separating from a long-term relationship to the grieving process that happens when a loved one dies. In generally, this process can be expected to take one to two years to complete. Dr. Elizabeth Kubler-Ross, in her book On Death and Dying, describes a five-stage model of grief, and how grief affects our ability to make decisions in each stage.
=== 1. Goods ===


Shock and Denial "This isn't happening to me!" An initial paralysis at hearing the bad news; trying to avoid the inevitable. People usually avoid making decisions or taking action at this point.
Goods include all personal chattels, other than “things in action” (e.g. cheques, insurance policies, money). Things attached to real property, which the parties agree to sever before sale, or under the contract of sale, are included (s 1). Note that registration in the Land Title Office may be advisable to avoid possible characterization of the goods as real property or fixtures, so that the ''SGA'' may apply to the transaction.  
Anger "Why is this happening to me?" A frustrated outpouring of bottled-up emotion. Making decisions at this point is difficult because all one's energy gets put into the emotion rather than problem-solving, and the other partner is usually vilified.
Dialogue and Bargaining "I promise I'll be a better person if..." Seeking in vain for a way out; seeking solutions that might offer a solution. People generally become more willing to explore alternatives.
Depression and Detachment "I just don't care anymore." A final realization of the inevitable. It is hard to make reasonable decisions at this stage because of the sense of resignation.
Acceptance "I'm ready for whatever comes." Finally finding the way forward. Decisions are much easier to make because people have found new purpose having begun to accept the loss.
Dr. Robert Emery agrees that the Kubler-Ross model applies to separating, but he looks at the grief process in slightly different way. In his book Renegotiating Family Relationships, Dr. Emery describes the grieving process as a cycle of love, anger and sadness which gets repeated in varying degrees of intensity as a person works his or her way through the Kubler-Ross stages, from shock and denial through to acceptance of the end of the relationship.


In his excellent book The Truth about Children and Divorce, Dr. Emery says this:
According to ss 1 and 9, the ''SGA'' covers '''existing''' and '''future goods'''. Future goods are goods to be manufactured or acquired by the seller after the making of the contract of sale.  


"Over time the intensity of the emotions diminishes and people usually find that the feelings begin to blend. Early on, the grief of divorce is experienced as an intense period of feeling nothing but love, followed by an equally intense period of feeling nothing but anger, followed by an equally intense period of feeling nothing but sadness. ... Over time, however, the intensity of the feelings begins to wane, and the cycles of each emotion begin to blur and run into the other two. This overlapping of emotion results in a realistic, less emotionally painful view of the divorce.
According to ss 1 and 6(1), general property or title in the goods must pass – not merely a special property or interest. Thus, for example, a contract of bailment is not covered.  
"When the blending does not occur, people get stuck in one emotional cycle or another. Someone who gets stuck on love may deny the reality of the breakup and pine for reconciliation; someone caught up in anger will act out of vindictiveness and a need for revenge; those mired in sadness will assume an exaggerated and unrealistic sense of responsibility for what has occured."
For most people, the difficult thing is that knowing about the stages of divorce and the grief cycle does precious little to actually solve the problem. You can intellectually know what's going on, but knowing what's going doesn't mean that the emotions go away; there is no magic light switch that you can flip to turn your emotions off. Knowing about the emotional roller coaster can, however, keep you aware about what is motivating your reactions to your former partner and help you contain your emotions while you are negotiating the fallout from the end of your relationship.


It is important to remember that you and your former partner are probably not going to be at the same stage of the grieving process. One person can come to the conclusion the relationship is over long before separation and reach acceptance, while the other person is still in shock and denial that the relationship has ended. This is another factor that will aggravate feelings between you and your former partner.
Contracts for skill and labour alone are not contracts for the sale of goods, so the ''SGA'' does not apply to them. However, if a contract is for labour and materials, then the ''SGA'' could apply to the materials (e.g. a contract to paint a house with paint supplied by the contractor).  


Each person's goal at the end of the day is to find acceptance, that moment when you don't recognize your former partner's voice on the telephone right away. As Dr. Emery has observed, the opposite of love isn't hate, it's indifference.
=== 2. Contract of Sale ===


A. A Warning about Allies
According to s 6(1), the SGA applies only where the purchaser agrees to buy goods with money as consideration. Hence gifts, barters, or exchanges are not subject to the SGA’s implied conditions and warranties. However, a court may avoid this result by finding two separate contracts rather than a barter, as long as the consideration, whether money or goods, has its value measured in monetary terms: see "Messenger v Green", [1937] 2 DLR 26 (NSSC). Thus, if a total price is attached, there will be a sale, even if payment is in goods.
All of us seek allies as we cope with the end of a relationship, it's just human nature. Allies may be found in family members, friends, coworkers or a new boyfriend or girlfriend. While we all appreciate the support that allies can offer, allies can also polarize your position with respect to your former partner, and sometimes encourage you to take an unreasonable and entrenched position when you need to be more flexible.


Allies take sides. That's just what they do. Imagine going to your mom or dad in tears, complaining abour your former partner. Your parent's job isn't to say "Well, really Bob is a fine person and a great father, you really should lighten up a little and remember his good qualities." Their job is to comfort you, and that often means saying "Yeah, you're right, I can't believe what a complete asshole Bob is being! What ever did you see in him anyway?"
According to s 6(3) of the SGA, a contract of sale may be absolute or conditional. If the contract is subject to some condition to be fulfilled later, it is called an agreement to sell.


You shouldn't stop seeking reassurance and comfort from your allies, but you should try to be alert about the influence allies can have, even though they're not intentionally trying to worsen the issues you and your former partner are dealing with.
Section 8 of the SGA provides that the contract may be either written or oral.


B. A Warning about Parenting
=== 3. Lease Contracts ===
Some people best manage a breakup by walking out the door and never looking back, and doing their grieving alone. This just isn't possible where there is property to manage and divide, and it's especially not possible when a couple have children. You can't change your phone number, you can't stop answering the phone, and you can't refuse to see your former partner if you have children. You are still mom or dad, and you'll always be mom or dad and have a relationship with the other parent until and unless your children predecease you.


As a result, it is even more critical for you to properly manage the roller coaster emotions of separation when you have children. You may be caught up in a whirlwind of anger and remorse at the present, but you have to think of the long-term effect of any rash behaviour. Do you want to be able to attend your child's graduation ceremony? Do you want to go to your child's wedding? How do you want your child to think of you in five years?
The ''SGA'' applies to lease contracts if the goods are leased for personal, family or household purposes.  


It is enormously difficult, but you simply must keep a button on your emotions while you grieve. Dr. Emery offers these suggestions in The Truth about Children and Divorce:
== C. Provisions of the Sale of Goods Act ==


First, draw clear boundaries around your relationship with your former partner. Let your partner know what you're prepared to talk to him or her about, what information your're prepared to share, and what if anything you're prepared to do with the children together.
Sections 16 – 19 of the ''SGA'' imply many terms into contracts for the sale of new items. Section 20 governs when these implied terms can and cannot be expressly waived by the seller. The ''SGA'' also defines these terms as conditions or warranties, thus defining the remedies available if breached.  
Second, use those boundaries to form a more business-like relationship with your former partner. The two of you may not be friends, but together you are engaged in the "business" of parenting your children. Keep your emotional distance from your former partner.
Third, respect these new rules. Don't intrude past those boundaries and keep your discussions focused on parenting. It may be hard not to react when your former partner pushes your buttons, but you're best off following this old saying: don't say anything if you don't have anything nice to say.
C. A Warning about Children
It can be extremely tempting to rely on your children to comfort you as you go through the grieving process. One word: don't. Whatever else you do, don't do this.


Children will be well aware when something's wrong. They will know when you're upset, when you're withdrawn, and when you're crying. Younger children will react with confusion and possibly fear. Older children who are more emotionally sophisticated will want to comfort you. There's nothing wrong with this either, but you do need to control your emotions.
=== 1. Implied Conditions and Warranties ===


When a child becomes too involved in soothing a parent, there are two main risks: you may develop an overly adult relationship with the child and burden the child with too much information about what's going on, information that is usually age-inappropriate; or, the child may turn into a caretaker, handling your emotions, picking up the housework that's falling behind, and assuming a parenting role towards any younger children.
The vital part of the ''SGA'' for the consumer is ss. 16 – 19, which '''may''' add statutory conditions and warranties to a contract for the sale of goods, subject to the possibility of exclusion (see [[{{PAGENAME}}#2. Exemption from Implied Contractual Terms | Section III.C.2: Exemption from Implied Contractual Terms]]).


According to Dr. Emery, "extreme emotional caretaking is developmentally inappropriate and can have long-term consequences on children's mental health." Children who grow up too soon are robbed of their right to be children. In the long-term they have trouble forming meaningful relationships, they may be emotionally distant, and they may be compulsively over-responsible.
==== a) Implied Condition of Title: s 16(a) ====


Back to the top of this chapter.
Section 16(a) provides that, subject to contrary intentions, there is an implied condition that the seller has the right to sell the goods. In an agreement to sell goods at a later date, there is an implied condition that the seller will have the right to sell the goods at the date the buyer takes possession.


III. Resolving the Issues
==== b) Implied Warranty of Quiet Possession: ss 16(b) and (c) ====


There is more than one way to resolve the issues that arise when a relationship ends, the most common of which are negotiation, mediation and litigation. Collaborative law is sort of a cross between negotiation and mediation.
Sections 16(b) and (c) provide implied warranties that in the future the buyer will enjoy undisturbed possession of the goods, free from any liens or other encumbrances in favour of third parties that are unknown to the buyer at the time the contract is made. If a secured creditor subsequently makes claims against the buyer, the buyer can sue the seller for damages resulting from breach of this implied warranty. The quantum of damages would likely be the amount of the liens outstanding so that the buyer could pay them off.  


Litigation is a contest between two parties, at the end of which, following trial, there is a winner and a loser. That's a bit of of a gloss on things, but litigation really is adversarial in nature, and if the parties can't come to an agreement between themselves, a trial will be held and a judge will impose a resolution on the parties.
==== c) Implied Condition of Compliance with the Description: s 17 ====


With mediation and negotiation, it's the parties themselves who come up with the resolution of their issues. Mediation in particular is cooperative in nature, and requires both parties to commit themselves to a dialogue aimed at finding a solution. There is no winner and no loser, as mediation and negotiation both demand accommodation, and neither party gets exactly what they want; these processes are about compromise.
Under s 17, when goods are sold by description, there is an implied condition that they correspond to the description.  


Unless there is a pressing and manifest urgency, in my view negotiation and mediation are to be preferred over litigation. While it is absolutely true that in some situations court is the only way out, most people can find compromise no matter how wound up their emotional states happen to be.
Most sales will be sales by description. The notable exception is where a buyer makes it clear that they are buying a particular item on the basis of its qualities known, independent of any representations by the seller. Generally, where a buyer purchases a product because of a vendor’s representations about its features (which may have been offered either gratuitously or in response to the buyer’s questions), this will be a sale by description, with the vendor’s representations forming part of the description. Catalogue purchases and purchases of products sealed in containers by the manufacturer are also sales by description.  


In The Truth about Children and Divorce, Dr. Emery describes three general categories of divorcing couples: the angry divorce, the distant divorce and the cooperative divorce. While these categories are not exactly exhaustive and are drawn from an American legal construct, they are useful in discussing the impact of emotional separation on negotiation, mediation and litigation.
'''NOTE:''' Specific (as opposed to unascertained) goods are goods that, at the time the contract is made, are agreed to be the only goods whose transfer will satisfy the contract. For example, in a sale of a new chair, if the parties agree that a specific chair is to be the  subject matter of the contract, the sale has been of specific goods. So, if the seller attempts to deliver a different chair, which is  identical in every way, except that it is not the actual chair agreed upon, the seller has breached the contract. Unascertained goods are goods that are agreed to be the subject matter of the contract at a point in time after the contract is made. For example, in the sale of a new chair, if the parties agree only on a specific type of chair, but do not specifically single out any individual chair, the sale has been of unascertained goods.  


A. The Cooperative Separation
Although s 17 cannot be excluded in retail sales of new goods, it may be excluded in private or commercial sales, subject to the ''contra proferentum'' rule. The ''contra proferentum'' rule states that a contract, if ambiguous, is construed as against the party who wrote it. Where a standard form contract is used, it is construed as against the party who offered it.  
Couples engaged in a cooperative separation have usually worked out a lot of their emotions and resolved much of their grief. They recognize their emotions for what they are, and avoid acting out of spite or tearfully reminiscing about the lost relationship. These couples attempt to work things out between themselves, with and without help from lawyers and mediators.


Cooperative separations usually result in a separation agreement or an order that they agree the court should make. Often, what little litigation that does occur is limited to simply getting the divorce order.
A sale by description may also raise s 18(b) issues (see [[{{PAGENAME}}#e) Implied Condition of Merchantable Quality: s 18(b) | Section III.C.1.e: Implied Condition of Merchantable Quality]]).


B. The Distant Separation
==== d) Implied Condition of Fitness for Buyer’s Purpose: s 18(a) ====
Couples in a distant separation are able to keep their conflict from their children, but are still dealing with feelings of hurt, resentment, anger and pain. While there is plenty of intense anger, this emotion usually fades to a growing dislike or indifference. These couples have done a lot less emotional work on their feelings, and their recollections of the relationship are characterized by bitterness rather than sadness.


These couples are not friends but know better than to become enemies, perhaps because of the children or past experience with court system. They deal with each other minimally, without a great deal of warmth or demonstrated anger.
Under s 18(a), if:


C. The Angry Separation
*i) the buyer expressly or by implication makes known to the seller the particular purpose for which the goods are required, so as to show that they rely on the seller’s skill and judgment; and  
This, of course, is the type of separation to be wary of. These separations are also known as "high-conflict" separations. Couples in an angry separation have trouble letting go of the marriage, and feel intense pain and anger. Their emotions are usually raw and neither party has done a great deal to manage their feelings.
*ii) the goods are of a description which it is in the course of the seller’s business to supply;


These couples have the hardest time dealing with each other and the legal issues between them, as they focus on "fault" and "blame," and are often unable to stop themselves from lashing out hurtfully. Resolving the issues is the most difficult for these couples, and they are the most prone to protracted, ugly litigation.
then there is an implied condition that the goods are necessarily fit for such purpose. An '''exception''' occurs where the contract is for the sale of a specified article under its patent or trade name, in which case there is no implied condition as to its fitness for any particular purpose.  


Couples in an angry separation, particularly those with children, generally need to get professional help in dealing with the emotional fallout from the end of the relationship if they are to avoid court and learn to cope with each other and their feelings in the months and years to come.
To establish a claim under s 18(a) of the SGA, three factors must be satisfied on a balance of probabilities (''[https://www.canlii.org/en/bc/bcsc/doc/2012/2012bcsc1412/2012bcsc1412.html?autocompleteStr=Nikka%20Traders%20&autocompletePos=1 Nikka Traders Inc v Gizella Pastry Ltd]'', 2012 BCSC 1412, para 65):
#that the buyer has made known to the seller the purpose for which it requires the goods;
#the dissemination of that purpose shows that the buyer relies on the seller’s skill or judgment; and
#the goods are of a description that is in the course of the seller’s business to supply.  


Angry separations are the sort that lawyers most often wind up dealing with. The epic battles couples engaged in an angry separation are capable of can barely be described. The legal issues arising from the breakup are rarely concluded within two years, and, when there are children, can run for six or more years! A trial rarely resolves issues between these couples, as they will often keep fighting long afterward about real or imagined changes in their respective circumstances following judgment. These couples are also living proof that money doesn't buy happiness — it buys you litigation, and lots of it.
Furthermore, the courts have held that the seller need not know the specific purpose for which the buyer wishes to use the goods. Knowledge of a broad purpose is sufficient. For example, in ''[https://www.canlii.org/en/bc/bcpc/doc/2006/2006bcpc265/2006bcpc265.html?resultIndex=1 Sugiyama v Pilsen]'', 2006 BCPC 265, para 71, the court held that section 18(a) provides a warranty that a car is “a reliable vehicle for use in driving in safety on the roads.” However, if the buyer wishes to use the goods for an unusual or peculiar purpose, this must be indicated to the seller.  


D. Anger
The “Patent and Trade Name Exception” is of little effect since the courts have interpreted it narrowly. The issue remains one of reliance, and the trade names exception will apply only where the buyer’s use of the patent or trade name indicates a lack of reliance upon the seller. In other words, the exception only applies where a consumer decides to purchase goods solely because of the trade name of a product without any reliance on representations by the seller. See ''[http://canlii.ca/t/50dx#par38 Wharton v Tom Harris Chevrolet Oldsmobile Cadillac]'', 2002 BCCA 78, paras 38-39.
By now, you will have guessed that the irrational thinking anger triggers can be the most important roadblock to resolving family law issues in a cooperative manner. Anger is an incredibly powerful emotion characterized by Dr. Emery as "the toxic residue of unresolved grief."


Anger also does a lot of very odd things that not many people are aware of. Ignorance of these different functions of anger can slow the grieving process, entrench unreasonable positions, and protract the resolution of the issues flowing from the end of a relationship.
==== e) Implied Condition of Merchantable Quality: s 18(b) ====


1. Anger Avoids other Emotions
Under s 18(b), if: (1) goods are bought by description, and (2) from a seller who deals in goods of that description, the seller is bound by an implied condition that the goods are of merchantable quality, except to the extent that the buyer has examined them.  
Anger can be used to divert blame from yourself and avoid feelings of guilt. People experiencing anger as a shield are often avoiding accepting responsibility for, perhaps, an affair or being the one who announced the end of the relationship. It can also stop you from experiencing the other primary emotions in the grieving process, sadness and love.


2. Anger that Prolongs the Relationship
===== (1) The Concept of Merchantable Quality =====
Intense anger can also signal that you are not yet done with the relationship. Conflict can be a way of drawing a former partner closer by getting their attention and maintaining the emotional relationship. Underneath this kind of anger remains love and a continuing attachment to a former partner, as illogical as this sounds.


3. Anger that Hides Fear
The concept of merchantable quality is difficult to define. A commonly used test, the '''price abatement''' test, asks whether a reasonable buyer, informed of the actual quality of the goods, would buy the goods without a substantial abatement of price (''BS Brown & Son v Craiks Ltd'', [1970] 1 All ER 823 (HL)). If the informed reasonable buyer would not buy without a substantial abatement of price, unmerchantable quality is inferred, and repudiation may be available.  
The process of separation contains a lot of threats, whether real or imagined. Many of these threats are obvious: the risk of losing an asset, the risk of not being able to have another romantic relationship, the risk of losing one's children. Fear triggers the fight-or-flight response; anger can be a manifestation of the fight response.


4. Anger that Blinds
Any damage to goods beyond the de minimus range, may be said to render the goods of unmerchantable quality (''[https://www.canlii.org/en/sk/skca/doc/1925/1925canlii154/1925canlii154.html?autocompleteStr=International%20Business%20Machines%20v%20Shcherban&autocompletePos=1 International Business Machines Co Ltd v Shcherban]'', [1925] 1 DLR 864 (Sask CA), [1925] 1 WWR 405).  
Anger can stop you from recognizing positive steps your former partner is taking to resolve issues, and lead you to assume that your partner is acting on false pretenses or on a hidden agenda. This kind of anger breeds suspicion that is often unwarranted.


Anger can also stop you from acknowledging your former partner's good qualities, especially with respect to parenting issues. Avoiding admitting these qualities makes it easier to hold onto an objectively unreasonable position.
Section 18(b) applies to the sale of used goods as well. However, there is a lower standard here: the goods must be usable but not perfect. A minor defect does not necessarily render the goods unmerchantable. See ''Bartlett v Sidney Marcus Ltd'',[1965] 2 All ER 753 (Eng CA).  


5. Anger is Easy
In any case, where the buyer seeks recovery of the full purchase price based on the implied condition of merchantable quality, he or she should be cautioned that continued use of the goods in question seriously weakens the argument that the goods are not fit for a particular purpose, or are not of merchantable quality.
For people who are emotionally bottled up, the emotions wrapped up in the grieving process can be very difficult. Both sadness and love can be difficult to acknowledge and deal with, particularly when feeling those emotions is associated with a loss of face. As a result, anger can be the easiest emotion to deal with and less painful to experience.


6. The Results of Anger
===== (2) Sale by Description =====
Apart from slowing down the grieving process, anger inevitably delays the resolution of the issues that come from the end of a relationship. An enraged person is not going to be able to negotiate since negotiation involves making concessions; an enraged person is mostly going to want to litigate. People in this state of mind make threats like "I'm going to take you for everything you've got," or "you'll never see the children again." They will also tell their lawyers that "it doesn't matter what it costs or whether I'm likely to lose, it's the principle of the thing!"


Sometimes these threats come true, and the consequences to both parties can be enormous.
Section 18(b) only applies to a sale by description. This is usually not a problem since most sales are by description, except where the buyer is clearly buying a particular item on the basis of qualities known to him apart from any representations.  


Someone who takes an unreasonable position out of anger will lose, but in carrying out their crusade they risk draining all of the family's assets to fund the litigation.
===== (3) Seller who Deals in Goods of that Description =====
Rage can permanently impair a couple's relationship with one another. Where there are no children, this may not be a problem, but where there are children this can be disastrous. You may not give a fig about your former partner, but what memories will your children have of the next five years of their lives?
People can jump to ridiculous conclusions by expecting the worst from their former partner, leading to conflict after conflict... and court application after court application. Redness on the buttocks of a toddler becomes evidence of molestation, rather than simple diaper rash.
Rage can trigger "affidavit wars," in which each person makes inflated claims about the purported evils of the other. Minor events are exaggerated beyond all proportion. The costly "war" is triggered because the other party is put to the burden of addressing each inflated claim. Very rarely is a party able to refrain from making reciprocal claims about the misconduct of the other: "I drink all the time? Actually, I only drink socially but you smoked pot when you were pregnant." What is a judge to make of claims like these?
Anger can strip you of your ability to see common-sense and lead you to adopt positions that are objectively unreasonable and doomed to fail. In the process of failing, however, you can expect to spend a lot of money and further damage the tensions in your relationship with your former partner.
Rage, as Dr. Emery observes, is a symptom of unresolved grief. Whatever the cause, failing to move beyond anger can be poisonous to you, to your former partner, to your children and to your relationship with your children. Some counselling, whether by yourself or with your former partner, can be critical in moving forward and out of anger.


E. Choosing your Lawyer
In addition to requiring that the sale be by description, section 18(b) also requires that the seller must “deal in goods of that description.” In ''[[2011 BCSC 927|Hartmann v McKerness]]'', 2011 BCSC 927, a seller sold a watch by description over eBay and was sued for violating the implied condition of merchantability in section 18(b). In paragraphs 43-47, the BC Supreme Court held that the eBay seller was not a seller “who dealt in goods of that description” for the purpose of 18(b), as he did not specialize in watches, but rather sold a large variety of goods.
Your choice of lawyer can play a large part in determining how your separation unfolds. Many lawyers are quite open to mediation, while a few others see litigation as the only means of resolving a dispute, particularly lawyers who have a reputation as being bulldogs. Other lawyers do not take their duty to respond promptly to correspondence particularly seriously, which will delay things and may result in an unnecessarily large number of interim applications. Still other lawyers see their duty as limited to militantly carrying out their clients' instructions, without supplying a great deal of options or cautions as to the likely effect of those instructions.


The best family law lawyers give their clients a common sense analysis of their situation, based on probable outcomes and their expert knowledge of the law, and encourage their clients to take a position which is objectively reasonable. These lawyers will usually pursue settlement, either before or after litigation has started, and see litigation as a last resort. They are open to negotiation and mediation, although they usually prefer a result-oriented mediation process rather than the lengthier traditional process that also tries to deal with emotional issues and interests.
===== (4) Effect of Examination by the Buyer =====


While some people, particularly those in angry separations, feel an almost irresistable urge to go out and hire the toughest bulldog around to exact revenge against their former partner, bulldogs rarely see any resolutions other than: a settlement on exactly the extortionate terms their clients want; or, a knock-down drag-'em-out trial. These lawyers cost the most, and you can expect the litigation process to drag out for an ungodly amount of time. Even if you are in an angry separation, step back and take a breath. Remember that even though you may hate your former partner at present, you will have to live with the consequences of hasty litigation and your unreasonable positions well into the future. You might also lose your house to pay your lawyer's fees.
If the buyer examines the goods, there is no condition of merchantable quality for defects that the examination ought to have revealed. However, if the average person would not have been able to spot the defect during the exam, the condition of merchantability remains. Hence, it must be determined: 1) whether the buyer examined the goods, and 2) whether the defects ought to have been revealed by the exam. There is no obligation on the buyer to make a reasonable examination, or even any examination.  


How do you find a lawyer? By reputation. Ask around; talk to friends who have had to deal with family lawyers before; ask for referrals from the other professionals in your life. You can also window shop. You do not have to hire the first lawyer you have a consultation with; go ahead and set up meetings with a bunch of different lawyers. Additional information about hiring a lawyer can be found in the chapter The Legal System > Lawyers & Litigants.
===== (5) Implied Condition of Reasonable Durability =====


You should also know that many lawyers who litigate are also accredited family law mediators. If the lawyer you're speaking to is also a family law mediator, you may want to enquire about the possibility of using his or her services to mediate your dispute before you say much more about your case. If you give the lawyer too much information about your situation, he or she may not be able to assume the impartial role demanded of a mediator.
The goods must be durable for a reasonable period of time with regard to their normal use (s 18(c)).  


F. Required Reading
==== f) Implied Conditions in Sales by Sample: s 19 ====
Renegotiating Family Relationships, by R.E. Emery
The Truth about Children and Divorce, by R.E. Emery (Read this book!)
Rebuilding: When Your Relationship Ends, by B. Fisher and R.E. Alberti
Healing Hearts: Helping Children and Adults Recover from Divorce, by E. Hickey and E. Dalton
Helping your Kids Cope with Divorce the Sandcastles Way, by M.G. Neuman
Joint Custody with a Jerk: Raising your Child with an Uncooperative Ex, by J.A. Ross


{{JP Boyd on Family Law Navbox|type=chapters}}
For a contract to be a sale by sample, there must be “an express or implied term in the contract to that effect” (s 19(1)).
 
Three implied conditions of a sale or lease by sample are set out in s 19(2):
*i) the bulk must correspond with the sample in quality;
*ii) the buyer or lessee must have a reasonable opportunity of comparing the bulk with the sample; and
*iii) the goods must be free from any defect rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.
 
The last condition can only be relied upon where the defect would not have been apparent on a hypothetical reasonable examination. Contrast this with the s 18(b) condition of merchantability for sales by description, where the buyer’s '''actual''' examination is considered.
 
=== 2. Exemption from Implied Contractual Terms ===
 
==== a) Private Seller ====
 
Based on section 20, Private sellers or lessors, as opposed to retail sellers or lessors, can explicitly exempt themselves from ss 17, 18, and 19. A retail sale is defined as one in the “ordinary course of the seller or lessor’s business.” This is subject to the ''contra proferentum'' rule that such a clause, if ambiguous, is read strictly against the person relying on it.
 
==== b) Commercial Seller ====
 
Under s 20 of the ''SGA'', retailers of '''new goods''' cannot exempt themselves from the implied terms in ss 16 – 19, and any clause that attempts  to do so is void, subject to the exceptions listed below.
 
A seller who is making a retail sale in the ordinary course of business can only expressly waive ss 16 – 19 if:
 
*i) the goods are used (except s 16, which also applies to used goods);
*ii) the purchaser, even a private individual, intends to resell the goods;
*iii) the lease is to a lessee for the purpose of subletting the goods;
*iv) the purchaser intends to use the goods primarily for business;
*v) the purchaser is a corporation or commercial enterprise; or
*vi) the seller is a trustee in bankruptcy, a liquidator, or a sheriff.
Where a commercial dealer includes a disclaimer clause exempting the transaction from the provisions in ss 16 – 19, the clause is void, unless one of the exceptions applies.
 
=== 3. Buyer’s Lien ===
 
Amendments to the ''SGA'' in 1994 created the buyer’s lien, which gives priority to a consumer who has paid some or all of the purchase price of the goods, but has not taken possession, before the seller goes into receivership or bankruptcy.
 
=== 4. Buyer’s Obligations and Seller’s Rights ===
 
A seller’s rights arise from a breach of the buyer’s obligations. The buyer has two main obligations: (1) to pay the price, and (2) to take delivery. A breach of either of these obligations does not necessarily give rise to all of the seller’s possible remedies as outlined below. One must consider the severity and consequences of a breach to determine the seller’s remedy. The seller has two classes of rights under the ''SGA'': (1) personal rights against the buyer for price or for damages, and (2) ''in rem'' rights to the goods.
 
==== a) Seller’s Personal Rights ====
 
===== (1) Action for the Price: s 52 =====
 
This action arises when the property in the goods has passed to the buyer, and the buyer neglects or refuses to pay; or where the price is payable on a certain day and the buyer neglects or refuses to pay. This remedy involves the seller seeking the price of the goods.
 
===== (2) Damages for Non-Acceptance: s 53 =====
 
This is an alternate remedy to action for the price. The prima facie rule for damages is set out in s 53(3). The seller is entitled to be paid  an amount equal to the difference between the negotiated price and the market price for the goods. However, this rule may be displaced where there is either no available market, or the goods are unique, in which case the damages will be assessed based on the estimated loss incurred  by the seller stemming from the breach (s 53(2)).
 
==== b) Seller’s In Rem Rights ====
 
===== (1) Unpaid Seller’s Lien: ss 43 - 45 =====
 
To get an unpaid seller’s possessory lien (the right to retain the goods until the whole of the price has been paid), the seller must be an “unpaid seller” as set out in s 42. An unpaid seller may retain the goods beyond the specified delivery date. Where goods are to be delivered in installments under a single contract, the seller may exercise a lien over any part of the goods if any part of the price is outstanding (s 45). If the goods are sold on credit, the seller is not entitled to a lien, except under ss 44(1)(b) and (c) where the term of credit has expired, or where the buyer is insolvent.
 
The right of lien may be lost if:
*a) the price is paid or tendered (s 44(1));
*b) delivery is made to a carrier or bailee (not the seller’s agent) without reserving a right of disposal (s 46(1)(a));
*c) the buyer or his or her agent lawfully obtains possession (s 46(1)(b)); or
*d) there is a waiver (s 46(1)(c)).
 
===== (2) The Right of Stoppage in Transit: ss 47 - 49 =====
 
This right can be exercised in accordance with s 47 when the seller is unpaid, the buyer is insolvent, and the goods are in the hands of a carrier.
 
===== (3) The Right of Resale: ss 43(1) and 51 =====
 
The seller has the right to resell:
*a) if the goods are perishable, or if notice of an intention to resell is given to the buyer by the unpaid seller, and the buyer does not pay within a reasonable time. In this case, the seller may resell the goods and recover damages from the original buyer for any loss from the breach of contract (s 51(3));
*b) if the seller has expressly reserved the right to resell in the contract (s 51(4)); 
 
Note that if the buyer defaults, and the contract provides that the seller may resell the goods in that situation, the seller may still claim damages, (s 51(4)).
 
=== 5. Other Sale of Goods Act Provisions ===
 
==== a) Stipulations as to Time ====
 
Section 14 states that, unless there is a different intention, stipulations as to time of payment do not go to the essence of a contract of sale (i.e. they are not conditions).
 
==== b) Stipulations as to Quantity ====
 
Under s 34, if the seller delivers a quantity of goods either greater or lesser than that contracted for, the buyer may either reject the entire shipment, or accept the quantity delivered and pay accordingly, or, if the quantity is greater than ordered, reject the balance over that ordered. There is likely an exception when the difference in quantity is so slight as to be ''de minimis''.
 
==== c) Stipulations as to Price ====
 
Under s 12, where a contract is silent as to price, the court will infer a reasonable price, but where the price would be too vague for the court to infer, there may be no consensus upon an essential term, and therefore no contract.
 
==== d) Installments ====
 
Under s 35(1), a buyer need not accept delivery by installments unless that is agreed to. Where a contract is for separately paid installments, circumstances and construction of the contract determine whether a breach allows for repudiation of the entire contract, or only a right to sue for damages regarding the defective installment.
 
== D. Remedies for Breach of Contract ==
 
Sections 52 – 57 of the ''SGA'' cover actions for breach of contract. Common law and equitable remedies may exist as well.
 
=== 1. Damages Generally ===
 
Generally, the object of damages is to put the injured party in the same position he or she would have been in had the other party performed their contract obligations (“expectation damages”).
 
At common law, to be awarded damages for breach of contract, those damages must be in the reasonable contemplation of both parties at the time the contract was formed. If the damages are too remote, they may not be recoverable under contract law. Both sides must be aware of the circumstances at the time of formation that would lead to damages if an obligation went un- or underperformed. This may encompass either implied circumstances, if reasonable, or special circumstances that were communicated at the time the contract was formed (''Hadley v Baxendale'' (1854), 156 ER 145 (Eng Ex Div)). Damages that were substantially likely and easily foreseeable at the time the contract was formed will be  deemed to have  been in the reasonable contemplation of the parties. Once the '''type''' of loss is found to have been foreseeable, the extent of damages can be recoverable even if the '''degree''' of damages is so extensive as to be unforeseeable.
 
Parties have a common law '''duty to mitigate''' their damages from the date of the contractual breach. In a contract for the sale of goods, this means buying the goods elsewhere and suing the party who breached the contract for the additional amount paid for the goods over the contract price. In a contract for services, such as roof repair, this means hiring another party to do the repairs and suing the original party for the difference in price paid, if any. There is some jurisprudence that suggests when it is not feasible for a party to mitigate, they are excused from doing so. See ''[https://www.canlii.org/en/ca/scc/doc/2012/2012scc51/2012scc51.html?resultIndex=1 Southcott Estates Inc v Toronto Catholic District School Board]'', 2012 SCC 51.
 
=== 2. Breach of Warranty ===
 
For a breach of a term of the contract that is a warranty, the only available remedy will be damages. The innocent party must continue with the contract while seeking damages.
 
In a contract for the sale of goods governed by the ''SGA'', the standard measure of damages is “the estimated loss directly and naturally resulting, in the ordinary course of events, from the breach” (s 56(2)). Where the warranty pertained to quality of the goods, the loss will be calculated as the difference between the cost of obtaining the goods in the market and the contract price of the goods (s 56(3)). Thus a buyer who has negotiated a good deal can recover the difference between their expected savings and the market price. Section 57 states that s 56 does not affect recovery of special damages or interest, if otherwise available by law. The common law governs the recovery of  special damages. For special damages to be recoverable, both parties must have been made aware of their possible incursion at the time of formation of the contract.
 
=== 3. Breach of Condition ===
 
For a breach of condition, the aggrieved party can affirm the contract and, in the future, seek damages, or terminate the contract, discharging future obligations but still allowing recovery for damages. The offending party has “repudiated” the contract by acting in a way that expresses the intention to no longer be bound by the contract, and the party aggrieved can accept or reject that repudiation.
 
==== a) Repudiation ====
 
The buyer’s primary right for a breach of a condition is to repudiate the contract and reject the goods. This can normally be exercised regardless of the actual quantum of loss or benefit to the parties. However, the right to repudiate may be lost under the ''SGA''.
 
In the case of a rightful repudiation, the buyer may refuse further payment, and in addition, seek either damages or restitution from the  seller. The consequence of wrongful repudiation termination (the buyer repudiates when they did not have the right to do so; e.g. because the seller breached a warranty rather than a condition) is that the buyer is liable to the seller for their own breach of condition. So, it is important to determine whether or not repudiation is justified '''before''' taking any action, by determining the nature of the term the seller breached.
 
===== (1) When a Breach of Condition is Treated as a Breach of Warranty =====
 
Section 15(4) specifies two circumstances where, unless the parties contract otherwise, any breach of condition (including the implied statutory conditions in ss 16 – 19) must be treated as a breach of warranty: (1) in a contract for sale of specific goods when property has  passed to the buyer; or (2) where the buyer has accepted the goods, or part of them.
 
===== (2) Specific Goods: Upon Passage of Property =====
 
When s 15(4) is combined with ss 23(1) and (2), the result is that, for a sale of specific goods in a deliverable state, the buyer loses the right to repudiate as soon as the contract is made.
 
However, courts may avoid this harsh result by: (1) implying a term allowing the buyer to accept the goods and later reject them: see ''[http://canlii.ca/t/g7bg3#par22 Polar Refrigeration Service Ltd v Moldenhauer]'' (1967), 61 DLR (2d) 462 (Sask QB) at para 22; (2) finding a total failure of consideration: see ''Rowland v Divall'', [1923] 2 KB 500; (3) finding the intent for property to not pass immediately (ss 22 and 23(1)); (4) finding that the goods are not specific; or (5) finding ss 23(3), (4) or (5) to be applicable.
 
===== (3) Unascertained Goods: Upon Acceptance =====
 
For a sale of unascertained goods, the buyer loses the right to repudiate upon acceptance of the goods (s 15(4)).
 
Under s 38, if the buyer has not previously examined the goods, there is no acceptance unless and until the buyer has had a reasonable opportunity to examine them. However, under s 39 a purchaser has accepted the goods once (1) the seller is notified by the buyer of  acceptance, (2) the goods are used in a manner inconsistent with the seller’s ownership (e.g. reselling the goods to a third party), or (3) the goods are retained without being rejected within a “reasonable time”.
 
The court determines a reasonable time for inspection and possible rejection by looking at all the circumstances surrounding the transaction.
 
==== b) Damages for Breach of Condition ====
 
As mentioned above, the innocent party has a choice in the face of a breach of condition. They may (1) accept the repudiation, terminate the contract, and sue for damages right away, or (2), if they have a legitimate interest in doing so, may affirm the contract, wait for the date of performance, and sue for damages for any defect in performance at that date. (In many cases involving one-time sales, the performance date will be contemporaneous with the date of the payment/delivery/breach, rendering this a moot point.)
 
In deciding whether or not to affirm a contract in order to assess damages at a later date, the client should consider the implications of their duty to mitigate the loss. In a sale of goods, purchasing the goods from someone else can often mitigate damages; generally no special interest exists in purchasing the particular goods from a particular vendor.
 
==== c) Specific Performance ====
 
If an aggrieved party does decide to affirm the contract, specific performance may be available for a contract of sale for specific goods. Specific performance is a court order compelling performance of a contract in the specific form in which it was made (''SGA'', s 55). In certain circumstances, it may be available at common law for unascertained goods (''Sky Petroleum Ltd v VIP Petroleum Ltd'', [1974] 1 WLR 576, [1974] 1 All ER 954). Specific performance is a discretionary equitable remedy and will only be granted if damages are inadequate; for example where the goods are unique or otherwise unavailable. Section 3(1)(c) of the ''Small Claims Act'', RSBC 1996, c 430, provides that the Small Claims Division of the Provincial Court of  British Columbia can grant specific performance in an agreement relating to personal property.
 
=== 4. Rescission ===
 
The remedy of rescission seeks to undo a contract. It is available for, among other things, misrepresentation. See section IV.G for a fuller discussion of what constitutes misrepresentation. Rescission is an equitable remedy that sets the contract aside and seeks to restore the parties to their original, pre-contractual positions. This usually means return of the goods and return of any payment made. Because it undoes the contract, no damages can be claimed beyond the restitution necessary to return the parties to their pre-contractual positions. Delay in bringing the action or acceptance of the goods may bar rescission.
 
 
 
 
{{REVIEWED LSLAP | date= August 5, 2021}}
{{LSLAP Manual Navbox|type=chapters8-14}}

Revision as of 23:39, 5 August 2021

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 5, 2021.



Generally, consumers have no right to return goods or cancel a contract simply because they decide the goods are no longer wanted or needed. However, it is often only after the goods are purchased that damages or defects are discovered. In such cases, a purchaser may have a remedy if it can be shown that a term of the contract has been breached. It may also be the case that the business has a refund policy of which the consumer can take advantage.

This section outlines the protection that consumers have against the problems that may occur after a purchase has been made. To understand one’s legal rights, it is necessary to know the differences between terms, representations, and mere puffs.

A. Identifying and Classifying the Terms of a Contract

A term of the contract is a promise made by the manufacturer or seller regarding the character or quality of an article. It can be either written or oral. Written terms will generally be straightforward to identify. Whether an oral statement can be properly considered a term may be less obvious. Not everything said by the seller will be a term of the contract. To be a term, the statement must be a specific promise that makes up part of the contract.

If a statement is not a term, it may be either a representation or a puff. A representation is a material statement of fact made to induce the other party to enter the contract. A puff is vague sales talk not meant to have any legal effect. For example, a statement that “This is a wonderful car” would be a puff and not meant to be taken literally as a contractual term (see 11:IV G. False or Misleading Advertising)

Whether a statement is a term, representation, or puff affects the remedy available to the consumer: damages (see D. Remedies for Breach of Contract below), rescission (under a claim of misrepresentation; see 11:IV G. False or Misleading Advertising), or no remedy, respectively. For this Chapter, we are concerned with terms of a contract.

If a statement is a term of the contract, it can be a condition, warranty, or innominate term. A well-drafted contract will characterize particular terms as conditions or warranties, though the wording used in the contract will not always be determinative (Wickman Machine Tool Sales Ltd. v L. Schuler A.G., [1974] AC 235). The three types of terms are as follows (Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd, [1962] 2 QB 26, [1962] 1 All ER 474 at para 49):

1. Condition

A condition is a term that is so essential to the agreement that its breach is considered to be a substantial failure to perform the contract. A breach of a condition is said to go to the root of the contract. In other words, the breach is such that it deprives the innocent party of “substantially the whole benefit” of the contract. Breach of condition entitles the buyer to terminate any further obligations under the contract and sue for damages. The aggrieved party, if aware of the impending breach, could accept the repudiation of the other party and terminate the contract, ending all future obligations except for the damages that stem from non-performance. Or, the aggrieved party could not accept the repudiation, and may wait for the future breach to occur before pursuing damages (e.g., if they think that there is still a chance that the contract will be performed).

2. Warranty

A warranty is a term of the contract that is not so essential. A warranty must be performed, but its breach is not considered to go to the root of the contract. This meaning of warranty should not be confused with other uses of the word such as in “one-year maintenance warranty”. When a warranty is breached, the innocent party must continue to perform its own obligations under the contract but can sue for damages.

3. Innominate Terms

Innominate terms arise out of the common law, but unlike conditions and warranties, they are not mentioned in the SGA. An innominate term is one that may be treated as either a condition or a warranty, depending on how severe the consequences of a breach turn out to be. Whether an innominate term is a condition or a warranty is for a judge to decide.


NOTE: for certain terms the SGA specifies whether they are conditions or warranties. The SGA also implies some terms as conditions or warranties even if they are not expressly included in the contract (see Section C. Provisions of the Sale of Goods Act below).

B. Determining if the Sale of Goods Act Governs the Contract

The SGA applies to transactions that can be characterized as contracts for the sale of goods. Any transaction that is not for the sale of goods does not receive the benefit of the SGA. Hence, the subject matter of the transaction must be goods and the essential elements of a contract must also be present.

1. Goods

Goods include all personal chattels, other than “things in action” (e.g. cheques, insurance policies, money). Things attached to real property, which the parties agree to sever before sale, or under the contract of sale, are included (s 1). Note that registration in the Land Title Office may be advisable to avoid possible characterization of the goods as real property or fixtures, so that the SGA may apply to the transaction.

According to ss 1 and 9, the SGA covers existing and future goods. Future goods are goods to be manufactured or acquired by the seller after the making of the contract of sale.

According to ss 1 and 6(1), general property or title in the goods must pass – not merely a special property or interest. Thus, for example, a contract of bailment is not covered.

Contracts for skill and labour alone are not contracts for the sale of goods, so the SGA does not apply to them. However, if a contract is for labour and materials, then the SGA could apply to the materials (e.g. a contract to paint a house with paint supplied by the contractor).

2. Contract of Sale

According to s 6(1), the SGA applies only where the purchaser agrees to buy goods with money as consideration. Hence gifts, barters, or exchanges are not subject to the SGA’s implied conditions and warranties. However, a court may avoid this result by finding two separate contracts rather than a barter, as long as the consideration, whether money or goods, has its value measured in monetary terms: see "Messenger v Green", [1937] 2 DLR 26 (NSSC). Thus, if a total price is attached, there will be a sale, even if payment is in goods.

According to s 6(3) of the SGA, a contract of sale may be absolute or conditional. If the contract is subject to some condition to be fulfilled later, it is called an agreement to sell.

Section 8 of the SGA provides that the contract may be either written or oral.

3. Lease Contracts

The SGA applies to lease contracts if the goods are leased for personal, family or household purposes.

C. Provisions of the Sale of Goods Act

Sections 16 – 19 of the SGA imply many terms into contracts for the sale of new items. Section 20 governs when these implied terms can and cannot be expressly waived by the seller. The SGA also defines these terms as conditions or warranties, thus defining the remedies available if breached.

1. Implied Conditions and Warranties

The vital part of the SGA for the consumer is ss. 16 – 19, which may add statutory conditions and warranties to a contract for the sale of goods, subject to the possibility of exclusion (see Section III.C.2: Exemption from Implied Contractual Terms).

a) Implied Condition of Title: s 16(a)

Section 16(a) provides that, subject to contrary intentions, there is an implied condition that the seller has the right to sell the goods. In an agreement to sell goods at a later date, there is an implied condition that the seller will have the right to sell the goods at the date the buyer takes possession.

b) Implied Warranty of Quiet Possession: ss 16(b) and (c)

Sections 16(b) and (c) provide implied warranties that in the future the buyer will enjoy undisturbed possession of the goods, free from any liens or other encumbrances in favour of third parties that are unknown to the buyer at the time the contract is made. If a secured creditor subsequently makes claims against the buyer, the buyer can sue the seller for damages resulting from breach of this implied warranty. The quantum of damages would likely be the amount of the liens outstanding so that the buyer could pay them off.

c) Implied Condition of Compliance with the Description: s 17

Under s 17, when goods are sold by description, there is an implied condition that they correspond to the description.

Most sales will be sales by description. The notable exception is where a buyer makes it clear that they are buying a particular item on the basis of its qualities known, independent of any representations by the seller. Generally, where a buyer purchases a product because of a vendor’s representations about its features (which may have been offered either gratuitously or in response to the buyer’s questions), this will be a sale by description, with the vendor’s representations forming part of the description. Catalogue purchases and purchases of products sealed in containers by the manufacturer are also sales by description.

NOTE: Specific (as opposed to unascertained) goods are goods that, at the time the contract is made, are agreed to be the only goods whose transfer will satisfy the contract. For example, in a sale of a new chair, if the parties agree that a specific chair is to be the subject matter of the contract, the sale has been of specific goods. So, if the seller attempts to deliver a different chair, which is identical in every way, except that it is not the actual chair agreed upon, the seller has breached the contract. Unascertained goods are goods that are agreed to be the subject matter of the contract at a point in time after the contract is made. For example, in the sale of a new chair, if the parties agree only on a specific type of chair, but do not specifically single out any individual chair, the sale has been of unascertained goods.

Although s 17 cannot be excluded in retail sales of new goods, it may be excluded in private or commercial sales, subject to the contra proferentum rule. The contra proferentum rule states that a contract, if ambiguous, is construed as against the party who wrote it. Where a standard form contract is used, it is construed as against the party who offered it.

A sale by description may also raise s 18(b) issues (see Section III.C.1.e: Implied Condition of Merchantable Quality).

d) Implied Condition of Fitness for Buyer’s Purpose: s 18(a)

Under s 18(a), if:

  • i) the buyer expressly or by implication makes known to the seller the particular purpose for which the goods are required, so as to show that they rely on the seller’s skill and judgment; and
  • ii) the goods are of a description which it is in the course of the seller’s business to supply;

then there is an implied condition that the goods are necessarily fit for such purpose. An exception occurs where the contract is for the sale of a specified article under its patent or trade name, in which case there is no implied condition as to its fitness for any particular purpose.

To establish a claim under s 18(a) of the SGA, three factors must be satisfied on a balance of probabilities (Nikka Traders Inc v Gizella Pastry Ltd, 2012 BCSC 1412, para 65):

  1. that the buyer has made known to the seller the purpose for which it requires the goods;
  2. the dissemination of that purpose shows that the buyer relies on the seller’s skill or judgment; and
  3. the goods are of a description that is in the course of the seller’s business to supply.

Furthermore, the courts have held that the seller need not know the specific purpose for which the buyer wishes to use the goods. Knowledge of a broad purpose is sufficient. For example, in Sugiyama v Pilsen, 2006 BCPC 265, para 71, the court held that section 18(a) provides a warranty that a car is “a reliable vehicle for use in driving in safety on the roads.” However, if the buyer wishes to use the goods for an unusual or peculiar purpose, this must be indicated to the seller.

The “Patent and Trade Name Exception” is of little effect since the courts have interpreted it narrowly. The issue remains one of reliance, and the trade names exception will apply only where the buyer’s use of the patent or trade name indicates a lack of reliance upon the seller. In other words, the exception only applies where a consumer decides to purchase goods solely because of the trade name of a product without any reliance on representations by the seller. See Wharton v Tom Harris Chevrolet Oldsmobile Cadillac, 2002 BCCA 78, paras 38-39.

e) Implied Condition of Merchantable Quality: s 18(b)

Under s 18(b), if: (1) goods are bought by description, and (2) from a seller who deals in goods of that description, the seller is bound by an implied condition that the goods are of merchantable quality, except to the extent that the buyer has examined them.

(1) The Concept of Merchantable Quality

The concept of merchantable quality is difficult to define. A commonly used test, the price abatement test, asks whether a reasonable buyer, informed of the actual quality of the goods, would buy the goods without a substantial abatement of price (BS Brown & Son v Craiks Ltd, [1970] 1 All ER 823 (HL)). If the informed reasonable buyer would not buy without a substantial abatement of price, unmerchantable quality is inferred, and repudiation may be available.

Any damage to goods beyond the de minimus range, may be said to render the goods of unmerchantable quality (International Business Machines Co Ltd v Shcherban, [1925] 1 DLR 864 (Sask CA), [1925] 1 WWR 405).

Section 18(b) applies to the sale of used goods as well. However, there is a lower standard here: the goods must be usable but not perfect. A minor defect does not necessarily render the goods unmerchantable. See Bartlett v Sidney Marcus Ltd,[1965] 2 All ER 753 (Eng CA).

In any case, where the buyer seeks recovery of the full purchase price based on the implied condition of merchantable quality, he or she should be cautioned that continued use of the goods in question seriously weakens the argument that the goods are not fit for a particular purpose, or are not of merchantable quality.

(2) Sale by Description

Section 18(b) only applies to a sale by description. This is usually not a problem since most sales are by description, except where the buyer is clearly buying a particular item on the basis of qualities known to him apart from any representations.

(3) Seller who Deals in Goods of that Description

In addition to requiring that the sale be by description, section 18(b) also requires that the seller must “deal in goods of that description.” In Hartmann v McKerness, 2011 BCSC 927, a seller sold a watch by description over eBay and was sued for violating the implied condition of merchantability in section 18(b). In paragraphs 43-47, the BC Supreme Court held that the eBay seller was not a seller “who dealt in goods of that description” for the purpose of 18(b), as he did not specialize in watches, but rather sold a large variety of goods.

(4) Effect of Examination by the Buyer

If the buyer examines the goods, there is no condition of merchantable quality for defects that the examination ought to have revealed. However, if the average person would not have been able to spot the defect during the exam, the condition of merchantability remains. Hence, it must be determined: 1) whether the buyer examined the goods, and 2) whether the defects ought to have been revealed by the exam. There is no obligation on the buyer to make a reasonable examination, or even any examination.

(5) Implied Condition of Reasonable Durability

The goods must be durable for a reasonable period of time with regard to their normal use (s 18(c)).

f) Implied Conditions in Sales by Sample: s 19

For a contract to be a sale by sample, there must be “an express or implied term in the contract to that effect” (s 19(1)).

Three implied conditions of a sale or lease by sample are set out in s 19(2):

  • i) the bulk must correspond with the sample in quality;
  • ii) the buyer or lessee must have a reasonable opportunity of comparing the bulk with the sample; and
  • iii) the goods must be free from any defect rendering them unmerchantable, which would not be apparent on reasonable examination of the sample.

The last condition can only be relied upon where the defect would not have been apparent on a hypothetical reasonable examination. Contrast this with the s 18(b) condition of merchantability for sales by description, where the buyer’s actual examination is considered.

2. Exemption from Implied Contractual Terms

a) Private Seller

Based on section 20, Private sellers or lessors, as opposed to retail sellers or lessors, can explicitly exempt themselves from ss 17, 18, and 19. A retail sale is defined as one in the “ordinary course of the seller or lessor’s business.” This is subject to the contra proferentum rule that such a clause, if ambiguous, is read strictly against the person relying on it.

b) Commercial Seller

Under s 20 of the SGA, retailers of new goods cannot exempt themselves from the implied terms in ss 16 – 19, and any clause that attempts to do so is void, subject to the exceptions listed below.

A seller who is making a retail sale in the ordinary course of business can only expressly waive ss 16 – 19 if:

  • i) the goods are used (except s 16, which also applies to used goods);
  • ii) the purchaser, even a private individual, intends to resell the goods;
  • iii) the lease is to a lessee for the purpose of subletting the goods;
  • iv) the purchaser intends to use the goods primarily for business;
  • v) the purchaser is a corporation or commercial enterprise; or
  • vi) the seller is a trustee in bankruptcy, a liquidator, or a sheriff.

Where a commercial dealer includes a disclaimer clause exempting the transaction from the provisions in ss 16 – 19, the clause is void, unless one of the exceptions applies.

3. Buyer’s Lien

Amendments to the SGA in 1994 created the buyer’s lien, which gives priority to a consumer who has paid some or all of the purchase price of the goods, but has not taken possession, before the seller goes into receivership or bankruptcy.

4. Buyer’s Obligations and Seller’s Rights

A seller’s rights arise from a breach of the buyer’s obligations. The buyer has two main obligations: (1) to pay the price, and (2) to take delivery. A breach of either of these obligations does not necessarily give rise to all of the seller’s possible remedies as outlined below. One must consider the severity and consequences of a breach to determine the seller’s remedy. The seller has two classes of rights under the SGA: (1) personal rights against the buyer for price or for damages, and (2) in rem rights to the goods.

a) Seller’s Personal Rights

(1) Action for the Price: s 52

This action arises when the property in the goods has passed to the buyer, and the buyer neglects or refuses to pay; or where the price is payable on a certain day and the buyer neglects or refuses to pay. This remedy involves the seller seeking the price of the goods.

(2) Damages for Non-Acceptance: s 53

This is an alternate remedy to action for the price. The prima facie rule for damages is set out in s 53(3). The seller is entitled to be paid an amount equal to the difference between the negotiated price and the market price for the goods. However, this rule may be displaced where there is either no available market, or the goods are unique, in which case the damages will be assessed based on the estimated loss incurred by the seller stemming from the breach (s 53(2)).

b) Seller’s In Rem Rights

(1) Unpaid Seller’s Lien: ss 43 - 45

To get an unpaid seller’s possessory lien (the right to retain the goods until the whole of the price has been paid), the seller must be an “unpaid seller” as set out in s 42. An unpaid seller may retain the goods beyond the specified delivery date. Where goods are to be delivered in installments under a single contract, the seller may exercise a lien over any part of the goods if any part of the price is outstanding (s 45). If the goods are sold on credit, the seller is not entitled to a lien, except under ss 44(1)(b) and (c) where the term of credit has expired, or where the buyer is insolvent.

The right of lien may be lost if:

  • a) the price is paid or tendered (s 44(1));
  • b) delivery is made to a carrier or bailee (not the seller’s agent) without reserving a right of disposal (s 46(1)(a));
  • c) the buyer or his or her agent lawfully obtains possession (s 46(1)(b)); or
  • d) there is a waiver (s 46(1)(c)).
(2) The Right of Stoppage in Transit: ss 47 - 49

This right can be exercised in accordance with s 47 when the seller is unpaid, the buyer is insolvent, and the goods are in the hands of a carrier.

(3) The Right of Resale: ss 43(1) and 51

The seller has the right to resell:

  • a) if the goods are perishable, or if notice of an intention to resell is given to the buyer by the unpaid seller, and the buyer does not pay within a reasonable time. In this case, the seller may resell the goods and recover damages from the original buyer for any loss from the breach of contract (s 51(3));
  • b) if the seller has expressly reserved the right to resell in the contract (s 51(4));

Note that if the buyer defaults, and the contract provides that the seller may resell the goods in that situation, the seller may still claim damages, (s 51(4)).

5. Other Sale of Goods Act Provisions

a) Stipulations as to Time

Section 14 states that, unless there is a different intention, stipulations as to time of payment do not go to the essence of a contract of sale (i.e. they are not conditions).

b) Stipulations as to Quantity

Under s 34, if the seller delivers a quantity of goods either greater or lesser than that contracted for, the buyer may either reject the entire shipment, or accept the quantity delivered and pay accordingly, or, if the quantity is greater than ordered, reject the balance over that ordered. There is likely an exception when the difference in quantity is so slight as to be de minimis.

c) Stipulations as to Price

Under s 12, where a contract is silent as to price, the court will infer a reasonable price, but where the price would be too vague for the court to infer, there may be no consensus upon an essential term, and therefore no contract.

d) Installments

Under s 35(1), a buyer need not accept delivery by installments unless that is agreed to. Where a contract is for separately paid installments, circumstances and construction of the contract determine whether a breach allows for repudiation of the entire contract, or only a right to sue for damages regarding the defective installment.

D. Remedies for Breach of Contract

Sections 52 – 57 of the SGA cover actions for breach of contract. Common law and equitable remedies may exist as well.

1. Damages Generally

Generally, the object of damages is to put the injured party in the same position he or she would have been in had the other party performed their contract obligations (“expectation damages”).

At common law, to be awarded damages for breach of contract, those damages must be in the reasonable contemplation of both parties at the time the contract was formed. If the damages are too remote, they may not be recoverable under contract law. Both sides must be aware of the circumstances at the time of formation that would lead to damages if an obligation went un- or underperformed. This may encompass either implied circumstances, if reasonable, or special circumstances that were communicated at the time the contract was formed (Hadley v Baxendale (1854), 156 ER 145 (Eng Ex Div)). Damages that were substantially likely and easily foreseeable at the time the contract was formed will be deemed to have been in the reasonable contemplation of the parties. Once the type of loss is found to have been foreseeable, the extent of damages can be recoverable even if the degree of damages is so extensive as to be unforeseeable.

Parties have a common law duty to mitigate their damages from the date of the contractual breach. In a contract for the sale of goods, this means buying the goods elsewhere and suing the party who breached the contract for the additional amount paid for the goods over the contract price. In a contract for services, such as roof repair, this means hiring another party to do the repairs and suing the original party for the difference in price paid, if any. There is some jurisprudence that suggests when it is not feasible for a party to mitigate, they are excused from doing so. See Southcott Estates Inc v Toronto Catholic District School Board, 2012 SCC 51.

2. Breach of Warranty

For a breach of a term of the contract that is a warranty, the only available remedy will be damages. The innocent party must continue with the contract while seeking damages.

In a contract for the sale of goods governed by the SGA, the standard measure of damages is “the estimated loss directly and naturally resulting, in the ordinary course of events, from the breach” (s 56(2)). Where the warranty pertained to quality of the goods, the loss will be calculated as the difference between the cost of obtaining the goods in the market and the contract price of the goods (s 56(3)). Thus a buyer who has negotiated a good deal can recover the difference between their expected savings and the market price. Section 57 states that s 56 does not affect recovery of special damages or interest, if otherwise available by law. The common law governs the recovery of special damages. For special damages to be recoverable, both parties must have been made aware of their possible incursion at the time of formation of the contract.

3. Breach of Condition

For a breach of condition, the aggrieved party can affirm the contract and, in the future, seek damages, or terminate the contract, discharging future obligations but still allowing recovery for damages. The offending party has “repudiated” the contract by acting in a way that expresses the intention to no longer be bound by the contract, and the party aggrieved can accept or reject that repudiation.

a) Repudiation

The buyer’s primary right for a breach of a condition is to repudiate the contract and reject the goods. This can normally be exercised regardless of the actual quantum of loss or benefit to the parties. However, the right to repudiate may be lost under the SGA.

In the case of a rightful repudiation, the buyer may refuse further payment, and in addition, seek either damages or restitution from the seller. The consequence of wrongful repudiation termination (the buyer repudiates when they did not have the right to do so; e.g. because the seller breached a warranty rather than a condition) is that the buyer is liable to the seller for their own breach of condition. So, it is important to determine whether or not repudiation is justified before taking any action, by determining the nature of the term the seller breached.

(1) When a Breach of Condition is Treated as a Breach of Warranty

Section 15(4) specifies two circumstances where, unless the parties contract otherwise, any breach of condition (including the implied statutory conditions in ss 16 – 19) must be treated as a breach of warranty: (1) in a contract for sale of specific goods when property has passed to the buyer; or (2) where the buyer has accepted the goods, or part of them.

(2) Specific Goods: Upon Passage of Property

When s 15(4) is combined with ss 23(1) and (2), the result is that, for a sale of specific goods in a deliverable state, the buyer loses the right to repudiate as soon as the contract is made.

However, courts may avoid this harsh result by: (1) implying a term allowing the buyer to accept the goods and later reject them: see Polar Refrigeration Service Ltd v Moldenhauer (1967), 61 DLR (2d) 462 (Sask QB) at para 22; (2) finding a total failure of consideration: see Rowland v Divall, [1923] 2 KB 500; (3) finding the intent for property to not pass immediately (ss 22 and 23(1)); (4) finding that the goods are not specific; or (5) finding ss 23(3), (4) or (5) to be applicable.

(3) Unascertained Goods: Upon Acceptance

For a sale of unascertained goods, the buyer loses the right to repudiate upon acceptance of the goods (s 15(4)).

Under s 38, if the buyer has not previously examined the goods, there is no acceptance unless and until the buyer has had a reasonable opportunity to examine them. However, under s 39 a purchaser has accepted the goods once (1) the seller is notified by the buyer of acceptance, (2) the goods are used in a manner inconsistent with the seller’s ownership (e.g. reselling the goods to a third party), or (3) the goods are retained without being rejected within a “reasonable time”.

The court determines a reasonable time for inspection and possible rejection by looking at all the circumstances surrounding the transaction.

b) Damages for Breach of Condition

As mentioned above, the innocent party has a choice in the face of a breach of condition. They may (1) accept the repudiation, terminate the contract, and sue for damages right away, or (2), if they have a legitimate interest in doing so, may affirm the contract, wait for the date of performance, and sue for damages for any defect in performance at that date. (In many cases involving one-time sales, the performance date will be contemporaneous with the date of the payment/delivery/breach, rendering this a moot point.)

In deciding whether or not to affirm a contract in order to assess damages at a later date, the client should consider the implications of their duty to mitigate the loss. In a sale of goods, purchasing the goods from someone else can often mitigate damages; generally no special interest exists in purchasing the particular goods from a particular vendor.

c) Specific Performance

If an aggrieved party does decide to affirm the contract, specific performance may be available for a contract of sale for specific goods. Specific performance is a court order compelling performance of a contract in the specific form in which it was made (SGA, s 55). In certain circumstances, it may be available at common law for unascertained goods (Sky Petroleum Ltd v VIP Petroleum Ltd, [1974] 1 WLR 576, [1974] 1 All ER 954). Specific performance is a discretionary equitable remedy and will only be granted if damages are inadequate; for example where the goods are unique or otherwise unavailable. Section 3(1)(c) of the Small Claims Act, RSBC 1996, c 430, provides that the Small Claims Division of the Provincial Court of British Columbia can grant specific performance in an agreement relating to personal property.

4. Rescission

The remedy of rescission seeks to undo a contract. It is available for, among other things, misrepresentation. See section IV.G for a fuller discussion of what constitutes misrepresentation. Rescission is an equitable remedy that sets the contract aside and seeks to restore the parties to their original, pre-contractual positions. This usually means return of the goods and return of any payment made. Because it undoes the contract, no damages can be claimed beyond the restitution necessary to return the parties to their pre-contractual positions. Delay in bringing the action or acceptance of the goods may bar rescission.



This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 5, 2021.
© Copyright 2023, The Greater Vancouver Law Students' Legal Advice Society.