Chapter 16: Sales of Personal Property Law for Business, 15e by Ashcroft Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning

16.2 Chapter 16 Objectives  Define “goods.”  Define a “sale” of goods and distinguish it from a contract to sell.  Distinguish between existing and future goods.

16.3 Sales Contracts  A contract to sell will happen in the future; contract of sale has already happened.  Title is ownership of the subject matter and is transferred at once upon sale.  Article 2 of the UCC governs sales of goods but not agreements to perform services.  The price is consideration in a sales contract, usually expressed in money.

16.4 Types of Goods  Existing goods are both in existence and owned by seller  Identified goods are those that the seller and buyer have agreed are to be received by the buyer or that have been picked out by the seller  Future goods are not yet in existence

16.5 Bills of Sale  A bill of sale serves two purposes:  Proof of title  Proof the buyer obtained the goods legally  Generally, a buyer does not need a bill of sale as evidence of title, but it is very desirable! Bill of Sale

16.6 Illegal Sales  If illegal sale is fully executed, a court won’t intervene to aid either party.  If the illegal sale is executory, it will not be enforced.  If the illegal part can be divided from the legal part, the legal part will be upheld.  If the sale in indivisible, the whole thing is illegal.

16.7 International Sales Contracts  Parties may specify which country’s laws should prevail.  When the contract is not specific, the United Nations Convention on Contract for the International Sale of Goods governs.

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