Passage of property
Question on passage of property:
1. does it fall under the SGA?
2. Are the goods specific or unascertained?
Unascertained: Specific:
- Standard rule s.16 property does not - S.17 – look to intention of parties
pass until ascertained unless s.20A - S.18 – rules on ascertaining intention.
applies Which rule does it fit into?
- Does s.20A apply?
- If not, does rule 5 apply?
s.4 of the CRA 2015 – rules on passage of property also apply to
consumer sales.
Specific or unascertained?
s.61(1) – specific goods definition
Anything not covered by s.61(1) is unascertained.
Kursell – contracted to buy all the trees that grew to a certain
height. Not ascertained as would not know which trees would
grow that tall until later.
But: Joseph Reid – sale of all malleable timber, timber
cut and separated before contract signed so found to be
specific
Specific
s.17 – property passes when it is intended to pass.
s.18 – rules on identifying what intention is. Find out
which rule it falls into. Look at all rules before deciding which to assess.
Rule 1 -
“Where there is an unconditional contract for the sale of specific goods, in
a deliverable state, the property in the goods passes to the buyer when
the contract is made, and it is immaterial whether the time of payment or
the time of delivery, or both, be postponed.”
Unconditional contract
Question on passage of property:
1. does it fall under the SGA?
2. Are the goods specific or unascertained?
Unascertained: Specific:
- Standard rule s.16 property does not - S.17 – look to intention of parties
pass until ascertained unless s.20A - S.18 – rules on ascertaining intention.
applies Which rule does it fit into?
- Does s.20A apply?
- If not, does rule 5 apply?
s.4 of the CRA 2015 – rules on passage of property also apply to
consumer sales.
Specific or unascertained?
s.61(1) – specific goods definition
Anything not covered by s.61(1) is unascertained.
Kursell – contracted to buy all the trees that grew to a certain
height. Not ascertained as would not know which trees would
grow that tall until later.
But: Joseph Reid – sale of all malleable timber, timber
cut and separated before contract signed so found to be
specific
Specific
s.17 – property passes when it is intended to pass.
s.18 – rules on identifying what intention is. Find out
which rule it falls into. Look at all rules before deciding which to assess.
Rule 1 -
“Where there is an unconditional contract for the sale of specific goods, in
a deliverable state, the property in the goods passes to the buyer when
the contract is made, and it is immaterial whether the time of payment or
the time of delivery, or both, be postponed.”
Unconditional contract
