1. 16.1 b a c kn e x t h o m e Chapter 16 Objectives  Define “goods.”  Define a “sale” of goods and distinguish it from a contract to sell.  Distinguish between existing and future goods. © 2002 West Educational PublishingTo accompany Law for Business, 14e, by Ashcroft and Ashcroft

2. 16.2 b a c kn e x t h o m e Sales Contracts Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz  What is the difference between a contract to sell and a contract of sale?  Contract to sell will happen in the future; contract of sale has already happened.  If Jim buys a pencil to use for class, is that pencil considered a future, an existing, or an identified good?  Existing good.  Putting a winter coat on layaway at Sears would be a good example of what kind of good?  Identified good.

3. 16.3 b a c kn e x t h o m e 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

4. 16.4 b a c kn e x t h o m e Illegal Sales  If an illegal sale of goods is fully executed, the courts will not intervene to aid either party.  However, if one party is innocent, the other party has an obligation to restore goods or money to the innocent party.  If the illegal sale is executory, it will not be enforced.  If it can be proven that the illegal part can be divided from the legal part, the legal part will be upheld.  If the sale is indivisible, the whole thing is illegal.

5. 16.5 b a c kn e x t h o m e 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.