The International Sale of Goods Act

The International Sale of Goods Act applies the United Nations Convention on Contracts for the International Sale of Goods to Saskatchewan. Unless the parties expressly opt out of the Convention, its rules apply to all contracts for the sale of goods entered into between sellers and buyers in Saskatchewan and sellers and buyers in another contracting state.

The Convention includes goods to be manufactured or processed unless the buyer supplies a substantial part of the materials necessary for their manufacture or production. It does not apply to contracts for the supply of labour or other services if this is the largest part of the seller's obligation. It also does not apply to sales:

• of consumer goods;
• by auction;
• on execution or otherwise by authority of law;
• of stocks, shares, investment securities, negotiable instruments or money;
• of ships, vessels, hovercraft or aircraft;
• of electricity.

The Convention sets out uniform rules for the international sale of goods concerning:

• the formation of the contract (e.g., what constitutes an invitation to make offers, a binding offer, or a counter-offer; what constitutes acceptance; when an offer becomes effective; and when it is revocable, irrevocable, withdrawn or terminated);
• the rights and obligations of the buyer and the seller (e.g., with respect to the delivery and examination of the goods; and the conformity of the goods - in terms of quantity, quality, description and packaging);
  the passage of title; and
• risk and remedies for breach of contract (e.g., when risk passes to the buyer; what constitutes performance and breach of contract; rights such as determination of the contract price if not expressly fixed, or determination of an additional time period by the seller for the buyer to perform his or her obligations; and claims for damages recoverable include interest).

The Convention came into force in Canada in 1992. Over 30 countries have ratified the Convention to date.