Transfer of title

Question 1

What is bailment?

Answer 1

Bailor transfer possession to the bailee to hold property on their behalf

Question 2

What is attornment?

Answer 2

The passing off constructive possession from one party to another

A (bailor) puts stock in Bs (bailee’s) workshop

A sells stock to C but asks B to store and deliver them on behalf of A

Question 3

What are the main types of goods involved in a sale of goods transaction? (5)

Answer 3

1. Future
2. existing
3. specific goods
4. unascertained goods
5. Ascertained goods

Question 4

Can s12(1) SoGA seller right to sell be excluded? Law?

Answer 4

Cannot be excluded – s6 UCTA

In B2C, cannot be excluded – s31(1) CRA

Question 5

Definition of future goods? Law?

Answer 5

Goods that ae to be manufactured / sourced by the seller, after the sale is entered into

S5 SoGA

Question 6

Existing goods definition?

Answer 6

Already owned / possessed by seller

S5 SoGA

Question 7

Specific goods definition?

Answer 7

Parties are able to identify the goods when the contract is made

S61

Question 8

Which pieces of legislation concern when property passes?

Answer 8

S16 SoGA
S17 SoGA
S18 SoGA

Question 9

S16

Answer 9

No property will pass to buyer until unascertained goods become ascertained

(subject to s20A SoGA)

Question 10

What is the exception to s16 SoGA?

Answer 10

S28 SoGA

Question 11

What should you do if the problem question does not concern unascertained goods?

Answer 11

Go straight to s17 SoGA

Question 12

S17

Answer 12

Where sale is for specific / ascertained goods, property is transferred when the parties intended

Question 13

S17(2)

Answer 13

Must consider the terms of the contract, conduct, and the circumstances of the case to determine intention

Question 14

S18

Answer 14

If no intention clear, rules applied for ascertaining intention of the parties

Question 15

S19

Answer 15

For specific goods, seller may reserve right of disposal until certain conditions are fulfilled

Question 16

S18 rule 1

Answer 16

Where unconditional contract for specific goods, property passes when contract entered into

Question 17

S18 rule 2

Answer 17

Specific goods: where seller must put goods in deliverable state, property passes when goods made deliverable and buyer is notified

Question 18

S18 rule 3

Answer 18

Specific goods in deliverable state: where seller must weigh / measure / test goods to ascertain price, property does not pass until this is done and buyer notified

Question 19

S18 rule 4

Answer 19

When goods delivered to buyer, property does not pass until:

a. Buyer signifies acceptance or does an act adopting transaction
b. Does not signify acceptance but retains goods beyond reasonable time to reject

Question 20

How is deliverable state defined? Law?

Answer 20

S61 (5)

Where goods are delivered in such a state, buyer is bound to take delivery

Question 21

Which case concerns deliverable state? Facts?

Answer 21

Underwood v Burgh Castle

Machines were bolted to concrete when delivered; found not to be in a deliverable state until unbolted

Question 22

S18 rules 5

Answer 22

Where goods are unascertained, they must be in a deliverable state and unconditionally appropriated for property to pass

Question 23

What case law concerns s18 rule 5? (6)

Answer 23

Smyth v Bailey 1940
Carlos Federspiel v Twigg 
Hendy Lennox 
Re London Wine Co 
Re Goldcorp Exchange
Pignatoro v Gilroy

Question 24

What does unconditional mean? Case?

Answer 24

“unconditional” means no further obligations such as payment expected from the parties

e.g. Conditional = rot clause
Smyth v Bailey

Question 25

What does appropriation mean? Case?

Answer 25

Means the last action taken to signify that only these specific goods will be used in the contract Carlos Federspiel v Twigg – simply separating goods from general stock and addressing it to buyer was insufficient

Question 26

Hendy Lennox case facts

Answer 26

If seller sends an invoice with the serial code of each item to B. then there would be an appropriation

Question 27

Re London Wine Co Facts

Answer 27

Invoice to buyer did not specify which bottles of wine would go to them – a general description was insufficient

Question 28

Re Goldcorp Exchange

Answer 28

Coinage and bullion not separated from the bulk

Question 29

18 rule 5 (2)

Answer 29

Where seller delivered goods to B, or to carrier / bailee, seller has unconditionally appropriated the contract

Question 30

18 rule 5 (3)

Answer 30

Ascertainment by exhaustion

Question 31

18 rule 5(4)

Answer 31

Sub rule 3 only applies where the bulk is reduced to or less than the quantities due to a single buyer & that buyer is the only party to whom goods in the bulk are due

Question 32

Which laws concerns transfer of risk in B2C transactions?

Answer 32

S29 CRA | S31 (1) CRA

Question 33

What does s29 CRA state?

Answer 33

Goods remain at sellers risk until delivered to consumer

Question 34

Which law concerns transfer of risk In B2B transactions?

Answer 34

S20 (1) SoGA

Question 35

What does s20(2) SoGA?

Answer 35

Where delivery delayed through fault of buyer / seller, risk lies with the party at fault

Question 36

What does s32 SoGA state?

Answer 36

Delivery to carrier = delivery to buyer

Question 37

What does s33 SoGA state?

Answer 37

Where goods delivered at a distance, buyer carries risk

Question 38

Which two pieces of legislation concern frustration?

Answer 38

S6 and s7 SoGA

Question 39

What is the main case regarding frustration?

Answer 39

Howell v Coupland

Question 40

What rule is established in Howell v Coupland? Facts?

Answer 40

Frustration according to s6 and s7 only applies to specific goods Farmer agreed to sell 200 tonnes of potatoes grown from a single field When the crops failed, held the goods were specific because they came from a specific / identified source, the field

Question 41

What does s7 state?

Answer 41

Where goods perish before contract formation, the contract is void

Question 42

What does s6 state?

Answer 42

Where goods perish after contract formation, the contract is void Where goods perish after contract formation, the contract is void

Question 43

How is fault defined? Which law?

Answer 43

S61(1) SoGA – “wrongful act or deceitful”

Question 44

Which case concerns s6 SoGA? Facts

Answer 44

Sainsburys v Street | court held that – partial performance should be allowed and therefore contract should not be void

Question 45

What is the significance of Asfar v Blundell?

Answer 45

Concerns frustration | Gives definition of the word “perished” – nature of the thing has been altered as a matter of business