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The Sale of Goods Act 1979 (3) (Transfer of property and risk (Under the…
The Sale of Goods Act 1979 (3)
Transfer of property and risk
Under the 2002 Regulations, the goods remain at the seller's risk until they are delivered to the buyer
s16 - where there is a contract for unascertained goods, no property passes to the buyer until they are ascertained.
Unascertained goods - not identified until the contract is made
s17 - if the contract is for the sale of specific or ascertained goods, the property passes when the parties intend it to pass.
Specific goods are identified and agreed upon at the time of contracting
ascertained goods - identified after the contract is made*
Aluminium Industries BV v Romalpa
the parties can agree that property will not pass to the purchaser until all outstanding debts are paid
Sale by person who is not the owner
the rule is
nemo dat quod non habet (you cannot give what you have not got
s12 - implied condition that the seller had the right to sell the goods
s17 CRA 2015 - where goods are sold by a person who is not the owner, the buyer acquires no better title than the seller
EXCEPTIONS
estoppel
- if the true owner, by his conduct, lead an innocent purchaser to believe that the seller owns the goods, then the real owner is estopped, or prevented, from claiming ownership
sale under a voidable title
- where a seller has a voidable title but this title has not been avoided at the time of sale, the buyer acquire good title provided he buys in good faith without notice of the seller's defective title
Mercantile agents
an agent who, in the customary course of his business authority, sells goods or raised money on the security of goods (broker, auctioneer)
s2, Factors Act 1889 - any sale, pledge or other disposition by a mercantile agent in possession of goods or documents of title with the consent of the owner and in the mercantile agent's ordinary course of business to a bona fide purchaser for value without notice of any defect of the agent's authority is valid as if expressly authorised by the owner
Pearson v Rose and Young
- car sale without, reg doc
Disposition by a seller in possession
s24 - if a seller retains possession of goods after a contract of sale has been entered into and then sells the same goods to a second purchaser, that purchaser will obtain good title to the goods if he has taken delivery of them
the second purchaser must be in good faith and without notice of the original sale
the first purchaser would then have to sue the seller for the breach of contract
Disposition by a purchaser in possession
a purchaser may buy goods, but the seller may retain ownership and if the purchaser then sells the goods to an innocent party, that purchaser will obtain good title provided he is in good faith and has no notice of the original seller's claim
Sale of motor vehicles
The Hire Purchase Act 1964, if a vehicle which is the subject of a hire purchase agreement is sold by the hirer to a Private person who buys in good faith and without notice of the agreement, the buyer acquires good title to the vehicle, even as against the owner.
the original hirer will still have the same obligations to the finance company
Supply of services
non consumer sale - protection under the SGSA 1982
consumer sale - CRA 2015 sections 50, 52 and 53 apply
Reasonable care and skills (s.50 CRA 2015
an innominate term - the customer will only be entitled to treat the contract as repudiated if the breach of the term deprived him of substantially the whole benefit of the contract
Reasonable time (s.53 CRA 2015)
Reasonable charge (s.52 CRA 2015)