Hamish Entered into a Contract with Shania

question 49

Essay

Hamish entered into a contract with Shania.Under the terms of that agreement, she was required to deliver a widget to his factory within one week.As payment for that widget, Hamish immediately gave Shania a cheque for $5000 and a used widget that he no longer required.Shania intended to re-calibrate that widget and sell it to another customer for $1000.A dispute has arisen between the parties.Hamish argues that the agreement is governed by the Sale of Goods Act.Shania disagrees and in support of her position, she points to a section in the statute that says that the buyer must provide "a money consideration, called the price." And, as she reminds Hamish, he did not give any cash to her.Is the parties' contract governed by the Sale of Goods Act? Explain your answer.