Ebenezer has sold Christmas trees for the past five years. Each year he had purchased the trees from Gloria Marley who had a small tree farm in Northern Ontario. In order to ensure that he would have an adequate supply, Ebenezer entered into a contract with Gloria on September 15 to purchase all of her available trees at a price of $30.00 per tree. The contract read as follows:

"Ebenezer agrees to purchase and Gloria agrees to sell all of her Christmas trees (approximately 500) for $30.00 per tree. All trees are sold without warranty. Same terms as last year apply."

On December 1, Gloria cut the trees (which totaled 478), tagged them and placed them on the delivery truck. Orders were prepared directing the driver to make the delivery to Ebenezer. Gloria texted Ebenezer to advise that the trees were on the way.

Later that day the delivery truck slid off the road, resulting in the destruction of the trees.

Ebenezer purchased 500 "Douglas Pine" trees from another supplier at $40.00 per tree.

Subsequently Ebenezer received an invoice from Gloria for the full purchase price of $14,340.00. Upon further investigation, he has also discovered that 100 of the trees that were shipped were "Scotch Pine" trees and the balance were "Douglas Pine" trees. Ebenezer's profit on the sale of "Douglas Pine" trees is $40.00/tree as opposed to $30.00/tree for "Scotch Pine" trees. In the previous years Gloria had delivered only "Douglas Pine" trees.

Ebenezer refuses to pay and sues Gloria for breach of contract. Gloria counterclaims for the price of $14,340.00.

Required:Explain the legal positions of Ebenezer and Gloria and the likely result. Be certain to cite all relevant legal principles including the relevant portions of the Sale of Goods Act. Apply the rules below to your answer.

Please read blew for more information for the answer:

When Does Title (Ownership) of Goods Pass from Buyer to Seller?

Sometimes goods are damaged or destroyed.It is important to have rules to help us determine who owns the goods at any given time because usually the owner of the goods is the one who bears the loss if goods are damaged.Normally the risk passes with the title (ownership) of the goods.So, we must know who the owner of goods is at any given time.

The Act tells is that there are two types of goods - specific goods and unascertained goods.

Specific goods are goods that are in existence, identified and agreed upon as the subject matter of the sale.

Unascertained goods are goods that have not been set aside and agreed upon as the subject matter of the sale.

The Act has five rules that (unless otherwise agreed by the parties) tell us when title passes from the seller to the buyer.Note that the first 4 rules apply where it is determined that we are dealing with specific goods, and the last rule applies to unascertained goods.

Rule 1:In an unconditional contract for the sale of specific goods in a deliverable state, title passes when the contract is made;

Rule 2:In a contract for the sale of specific goods where the seller is required to do something to put the goods in a deliverable state, title passes when the buyer has been notified that this has been done;

Rule 3:In a contract where there is a sale of specific goods in a deliverable state but the seller is bound to do something to ascertain the price, title will pass when the buyer receives notice that this has been done;

Rule 4:In a contract for specific goods where the the goods are delivered to the buyer and require approvalor on a "sale on return" basis, title will pass when the buyer signifies his or her approval or when the buy retains the goods beyond a reasonable time; and

Rule 5: Where there is a contract for the sale of unascertained goods (or future goods) and those goods are delivered or in possession of the buyer in accordance with the terms of the contract, title of the goods is now with the buyer.