Contract of sale conditional on grant of credit
21 Contract of sale conditional on grant of credit
Where a buyer, before entering into a contract of sale of goods or services, makes it known to the supplier that he requires credit to be provided in respect of the payment for the goods or services and the credit is not provided by the supplier, the buyer, if he takes reasonable steps to obtain the credit but does not obtain the credit, may within a reasonable period after the contract is made, by notice in writing given to the supplier, rescind the contract.
Where a buyer has purported to rescind a contract of sale as referred to in subsection (1), a court may, on the application of the supplier or the buyer, declare whether or not the purported rescission was valid and, if it declares that it was valid—
may, on the application of the supplier or the buyer, where there is a dispute as to the return of the goods to the supplier, make an order relating to the return of the goods; and
may, where the contract of sale included terms relating to the compensation of the supplier for loss suffered by reason of the delivery of the goods to the buyer, make an order relating to the payment of compensation.
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