Sale of Goods. Flashcards
What are the three ways to transfer title of goods?
1) delivery, 2) deeds, and 3) contract.
How is title transfer in a contract as a promise?
Contract makes the promise and a different act is needed to transfer the title.
When is title passed in a contract of transfer?
When the parties intended it to transfer.
What are the requirements needed to transfer title under a contract of transfer? Where are they codified?
1) goods must be ascertained - specifically specified (s16 SGA 1979).
2) goods pass when intended to pass as understood by the terms of the contract, the conduct of the parties, and the circumstances of the case` (s17 SGA 1979).
What are rules 1, 4, and 5 for ascertaining intention, and where are they codified? Provide the case illustrating rule 5 with facts and held.
SGA 1979 s18 sets out the rules for ascertaining intention.
Rule 1 - if goods are 1) ascertained and are in a deliverable state, and 2) no conditions are required for transfer, and 3) nothing specifies otherwise = title passes immediately.
Rule 4 - goods delivered to you on approval or sale of return has their title transfered to you when 1) you signify approval, or 2) when no rejection is given by you to seller within agreed time, or (if no term) within reasonable time.
Rule 5 - if goods are unascertained, title passes when they become ascertained. This is illustrated in Wardor’s Co Ltd v Norwood & Sons Ltd - facts - ox kidneys went bad by the time they arrived to buyer. Held: because ox kidneys were good at the time they were dispatched to the sidewalk, no liability on seller because that is when the goods became ascertained, hence title passed when they were good.
What happens when you pay fully or partly for an ascertained bulk? Where is this rule codified?
When you pay full or part time from an ascertained bulk = you acquire the amount you paid for. This is codified in SGA 1979 s20A.
What is an unpaid seller’s lien? Where is it codified?
Rule: if buyer becomes insolvent without paying full amount, then seller can retain possession if he already has it.