Critically consider the case described in Ethical Perspective 13.1 (MTL, 335) and answer the associated discussion questions.

CHAPTER 13 Special Contracts: Sale of Goods 335 Ethical Perspective 13.1 Action for the Price and Expectation Damages Although the action for the price is an important remedy, it is available in only two situations. The vendor has to prove either that the property has already passed to the buyer, or that the buyer has already breached a contractual obligation to pay the price on a specific day. Lien In some circumstances, the Act permits the seller to exercise a lien. 43 A lien allows a a lien allows a person to retain person to retain possession of property until another person fulfills an obligation. In the possession of property until another current context, the seller may have the right to retain the goods until the buyer pays the price. That right can arise whether or not property has already passed. 44 Furthermore, it can arise even if the parties agreed to treat the time of payment as a warranty rather than a condition. In that situation, late payment will not carry a right of discharge, but it will allow the seller to hang on to the goods until the buyer pays in full. The right to exercise a lien is subject to two limitations. First, a lien requires possession. 45 Consequently, once the buyer legitimately takes control of the goods, the seller loses the right to apply a lien. 41. That concept of rescission was explained in Chapter 11. 42 Mitigation was explained in Chapter 12 . 43 Sale of Goods Act, s 39 (Ont). 44. Technically, the seller cannot exercise a lien unless property has passed. A vendor cannot have a lien over its own goods. However, a vendor can exercise a similar right to withhold delivery if property has not passed and if payment has not been received: Sale of Goods Aat,$38 (2) (Ont). 45. The lien that operates under the Sale of Goods A at is possersory because it allows the creditor to retain possession of an asset until a debt is paid. Other types of liens are discussed in Chapters 15 and 16