Sale of Goods

Question 1

Section 144 CCLA

Answer 1

General Rule: Property passes when intended to pass

Question 2

Section 120 CCLA

Answer 2

A contract for the sale of goods is a contract by which the seller transfers or agrees to transfer the property is goods to the buyers for money consideration

Question 3

Rule 1 (s 146 CCLA)

Answer 3

Property will pass when the contract is made if the contract is unconditional, the goods are specified and are in a deliverable state (irrelevant of whether delivery is postponed)

Question 4

Rule 2 (s 146 CCLA)

Answer 4

If the contract is for specific goods where something needs to be done to put them into a deliverable state, property will pass when the this thing is done and the buyer has notice that this has been done

Question 5

Rule 3 (s 146 CCLA)

Answer 5

Where contract is for specific goods in a deliverable state where the price needs to be ascertained, property will pass when the act is done and the buyer has notice that it is done

Question 6

Rule 4 (s 146 CCLA)

Answer 6

Property will pass for goods that are delivered to the buyer on approval or on similar terms when the buyer had indicated their approval or when the time period for return or a reasonable time expires

Question 7

Rule 5 (s 146 CCLA)

Answer 7

Unascertained or future goods must be unconditionally appropriated into the contract with both parties consent when in a deliverable state

Question 8

Issac v Unpaid Farmers in Weddel Receivership

Answer 8

Meat processor went into liquidation
There was a series of inspections and process steps
Weddel treated the carcassess as their own after slaughtering so the property passed on acceptance by Weddel for slaughter (different for leg stock were there was not right to refuse)

Question 9

Section 148 CCLA

Answer 9

Unless otherwise agreed the goods will remain at the seller’s goods until the property is transferred
If delivery is delayed, the risk remains with the party at fault with respect to any loss that might not have occurred but for the fault

Question 10

Section 127 CCLA

Answer 10

A contract for the sale of specific goods is void if the goods without the seller’s knowledge, have perished at the time when the contract is made

Question 11

Section 128 CCLA

Answer 11

The agreement for the sale of specific goods is void if the goods subsequently perish, without the fault on the part of the seller or the buyer, before the risk passes to the buyer

Question 12

Oldfield Asphalts v Grovedale Cool Stores

Answer 12

Sale of freezing chamber where chamber perished due to a fire while not yet in a deliverable state due to third party negligence
Repair would have cost three times the value of the sale ad it would have been a different building then what was described in the contract
The goods had perished

Question 13

Horn v Minister of Food

Answer 13

Contract for potatoes which had rotted
The contract was for potatoes, and they were still potatoes so they had not perished

Question 14

Rendell v Turnbull

Answer 14

Contract for table potatoes which had rotted
The goods had perished because they could not fulfill the purpose of the contract

Question 15

Asfar v Turnbull

Answer 15

Dates were submerged in water for a few days and could no longer be used for their intended purpose so had perished

Question 16

Section 149 CCLA

Answer 16

Statutory summation of nemo dat

Question 17

Exception: Section 153 CCLA

Answer 17

Exception to nemo dat
Requirements
- Property must pass to B
- A must maintain possession
- A must deliver the goods to C
- C has to receive these goods in good faith and without notice of the previous sale to B

Question 18

Mitchell v Jones

Answer 18

Facts:
B sold horse to M but M leased the horse back to B, after which B sold and delivered horse to J
Held:
S 153 did not apply because the first sale was completed by deliver and B was simply a bailee

Question 19

Exception: Section 297

Answer 19

Exception to nemo dat
Requirements:
- Mercantile agent with authority to sell
- In possession of the goods
- With consent of the owner (presumed consent)
- A sale made by the agent in the ordinary course of business as a mercantile agent is as valid as if the owner had expressly authorised the sale
- The buyer must act in good faith and not have notice of the agent’s lack of authority

Question 20

Ron McDonald v Jim Boyd

Answer 20

Facts:
R’s car landed up with A&J motors who sold the car to JB, can then somehow got back to R who sold it to Bedrock
Held:
A&J was a mercantile agent and this was a part of their normal dealings do s 297 applied and JB had good title