s20A - Undivided shares in goods forming part of bulk

Question 1

S20A

Answer 1

Inserted by SG(I)A 1995

Question 2

What is the purpose of s 20A?

Answer 2

To allow B a remedy to situation of Re WAIT 1927

Allows B who has paid for some/all of his good to become a co owner

Question 3

Re WAIT 1927

Answer 3

• W purchased 1000 tonnes of wheat, loaded onto ship for delivery
• Sold 500T to subpurchaser X, paid for them in full
• When ship docked, W declared bankrupt and trustee in bankrupty claimed all 1000T as theirs
• X got nothing, goods not seperated so unascetertained and no property had passed to him

Question 4

What conditions must be met for s20A to apply -> s20A(1)

Answer 4

I) Contract must be for specific quality in units of unascertained goods, % not enough
II) Goods must be part of indentified bulk in contract
III) B must have paid something and that what he has paid for forms part of the specified bulk

Question 5

If s20A(1) conditions met then apply s20A(2)

Answer 5

• Property in undivided share of bulk is Bs

- B becomes owner in comon of bulk

Question 6

s20A(3)

Answer 6

B’s undivided share = such share as quantity of goods paid for and due to B from bulk
- Divide quantity paid for and due by quantity in bulk
in Re WAIT -> 50%

Question 7

What if bulk is somehow less than total of undivided shares

Answer 7

All co-owner B’s shares are reduced proportionatly so shares = total
s20A(4)

Question 8

If all Bs become co-owners, then they all have to agree for any transfer of any part? How is this avoided

Answer 8

s20B(1)

Question 9

s20B(1)

Answer 9

• B who is co-owner under s20A, deemed to have consented to any transfer/delivery out of bulk by other co-owner, as long as it is the goods due to co-owner doing it