Transfer of Risk Flashcards
1
Q
Section 26 of SOGA provides for…
A
the transfer of risk of goods.
2
Q
The general rule of transfer of risk is…
A
risk follows property, so whoever has the title to the goods bears the risk.
3
Q
What are the exceptions under Section 26 of SOGA?
A
- Risk is borne by whichever party that causes a delay in the delivery but are only liable for what would not have happened if delivery was not delayed.
- Seller may still be liable as a bailee if property has passed to the buyer but seller is still in possession of the goods.
- Parties to the contract may expressly or impliedly agree upon who is to bear the risk even though they have no property.
4
Q
In Demby Hamilton v Barden, even though the property was not yet transferred, the buyer was held liable because…
A
the buyer was late in taking the delivery of 30 tons of apple juice until it went bad.
5
Q
In Stern v Vickers, it was held that…
A
the risk was transferred to the buyer through implied consent.
