Silver’s Garage Ltd. v. Town of Bridgewater

Silver’s Garage Ltd. v. Town of Bridgewater

Majority held there was no contract of sale because the municipal corporation could only be bound by collective council action or valid delegation; rule 4 of s.20 cannot be invoked absent an agreement to sell on approval; retention and use during a trial period did not alone transfer property; acquiescence doctrine did not apply because vendor did not act under a mistaken belief that the town had agreed to buy.

Citation
[1971] SCR 577
Parties
Plaintiff Appellant: Silver’s Garage Limited; Defendant Respondent: Town of Bridgewater
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 December 1970
Procedural Posture
Civil Appeal (municipal/contract) / Appeal to Supreme Court of Canada From Supreme Court of Nova Scotia, Appeal Division
Outcome
Appeal dismissed; judgment of Supreme Court of Nova Scotia, Appeal Division affirmed.
Legal Topics
Sale on Approval, Acceptance by Retention/silence, Acquiescence/estoppel, Municipal Authority to Contract, Statute of Frauds
Source Language
English
Municipal Law Contract Law Sale of Goods Sale on Approval Acceptance by Retention/silence Acquiescence/estoppel Municipal Authority to Contract Statute of Frauds

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Parties

Silver’s Garage Limited

Plaintiff Appellant

Town of Bridgewater

Defendant Respondent

Procedural Posture

Civil Appeal (municipal/contract) / Appeal to Supreme Court of Canada From Supreme Court of Nova Scotia, Appeal Division

Legal Issues

  1. 1 Whether a contract of sale existed between the appellant and the town
  2. 2 Whether retention of goods beyond a reasonable time converted a trial delivery into a sale under Sale of Goods Act s.20 r.4
  3. 3 Whether municipal officers or conduct could bind the town absent council resolution or delegated authority

Ratio Decidendi

Majority held there was no contract of sale because the municipal corporation could only be bound by collective council action or valid delegation; rule 4 of s.20 cannot be invoked absent an agreement to sell on approval; retention and use during a trial period did not alone transfer property; acquiescence doctrine did not apply because vendor did not act under a mistaken belief that the town had agreed to buy.

Court Disposition

Appeal dismissed; judgment of Supreme Court of Nova Scotia, Appeal Division affirmed.

Orders

  • Appeal dismissed with costs to respondent
  • Judgment of trial judge and Nova Scotia Appeal Division affirmed