Sale of goods

when does property pass

property passes when intended to pass per s 144 ccla

When was property intended to pass

if parties express and intention follow this ( issac v unpaid farmers) if not follow the defaut rules under s 164 of CCLA

5 default rules under s 164

1. Specifed goods pass when the contract is made

2. if something needs to be done to the goods property passes when that is done and buyer notifed

3. if it needs to be weiged etc to determine price property passes when this is done and buyer notifed

4. if buyer has right of first refusal property passes when buyer accepts it or if a relevant time period has passed

5. unascertained goods do not pass until they are unconditionally appropriated to what they are defined in as stated by the contract

Risk

default rule is that it follows ownership unless otherwise agree per s 148 CCLA

Exceptions to risk follows owenrship

• s 148(2) delayed delivery due to one party —> party at fault is liable

• s 148(3) breaach of bailement bailee liable for breaching duty of care

• s 127 contracts for sale are void if at the tie of contracitng the goods ad already perished

• s 128 if agreement to sell contract void if before contract complete

• if repairs are possible but uneconomical = void per Oldfield v Grovedale

meaning of perished

Oldfield v Grovedale: Perishment is not limited to food, where the nature of the goods has been so altered to what qualities they had at the time of the contract 

Horn v Minister of Food: if the goods can still be identified as potatoes not perished 

Rendell v Turnbull: Contract was for table potatoes these were indelible thus it is void 

Asfar v Blundell: No mercantile character thus they are void

Nemo dat exceptions to sale of goods s 297

s 297

• agent in possession after sale it is presumed that they can pass good title. If it is in the possession of a mercantile agent then they can pass title Ron McDonald v Jim Boyd

nemo dat exceptions s 153

seller in possession after sale

• if the seller retains possession of the goods or documents of title and delivers after the sale third party gets good titles if they are bona fida and unaware

• exception to this is if goods have been delivered to buyer but seller subsequently regains possess Mitchell v Jones

Remedies for nemo dat

1. if property has not passed then contractual remedies

2. if property passess —> nemo dat applies therefore must have a tort remedy e.g. conversion

3. If the seller was the bailee goof title passes per s 297 however will have remedies for repungence to the bailment