Concept of Delivery
Concept of Delivery
iceI
smai
lShaf
iiakaOpt
imi
st,(
2022/
2023sessi
on)
DELI
VERYOFGOODS
Theconceptofdel
i
v er
yofgoodsundercont
ractofsal
econsidert
hevar
ious
i
mpli
cati
onsofperformanceornon-
perf
ormanceofacontractofsal
eagreement
.
Per
f ormanceofthecontr
act:acont
ractagreementissaidtobeexecut
edorperformed
wher ethegoodsaret
ransfer
edbytheseller
,examined,accept
edandpaidforbythe
buyer.Wheretheopposi
teisthecase,t
hecontractisnotexecut
ed/per
formed
Deliv
eryhasbeenapt l
ydefnedbyS.
i 62oftheSalesofGoodsActasthevoluntar
y
tr
ansferofpossessionofgoodsf
rom onepersontoanot
her.Thi
ssimplyr
eferstothe
actualtr
ansferoft
hegoodsf r
om t
hesell
ertothebuyeri
nexchangeformoney
considerat
ion.
TheSaleofGoodsActof1893cl ear
lyspel
lsoutunderS.27,t
hedutiesofthesell
erand
thebuyeri
nacontractofsal
e.Thissect
ionprovi
desthati
tisthedutyofthesel
lerto
deli
vert
hegoods,andofthebuyertoacceptandpayforthem, i
naccordancewiththe
ter
msoft hecont
ractofsal
e.
S.28pr ovi
dest hatdeli
ver
yandpay mentareconcur rentconditi
ons,unl
essotherwise
agreed.Thissimplymeanst hesel
l
ermustber eadyandwi ll
i
ngt ogi
v einpossessionof
thegoodst othebuy erinexchangefortheprice,andthebuy ermustalsober eadyand
wil
lingtopaythepr icei
nexchangef orpossession.Howev er,t
heresomebasi c
excepti
onst othisgeneralrulewhi
chareasf oll
ows:
1.Wherei
nacontr
actofsal
epay
mentistobemadeagai
nstshi
ppi
ngdocument
s,
del
iv
eryandpay
mentmaynotbeconcur
r .SeeCl
ent ementHorstCo.VBi
ddel
lBrot
her
s.
2.Wher
einacontr
actofsal
e,t
her
eisanagr
eementf
orsal
eofgoodsoncr
edi
t.See
Amos&Wood,lt
dVKapr ow.
3.Wher
einacont
ractofsal
e,pay
menti
stobemadebyi
nst
all .SeeBr
ment audiV
Lawr
ence.
FORMSOFDELI
VERY
1.ActualDel
iver
y::
thi
sref
erst
othephy
sical
transf
eroft
hegoodsbyt
hesel
l
ert
othe
buyer
.
1
©Just
iceI
smai
lShaf
iiakaOpt
imi
st,(
2022/
2023sessi
on)
2.Symbol icDeli
very:thi
srefer
st othephysi
caltr
ansf
erofthemeansofcontr
olover
thegoods.Suchasdocumentofti
tletoaproperty
,akeytothewarehousewher
ethe
goodsarekeptoratr
ansferofacarkeybyt hesel
lert
othebuyer.
3.Con structi
veDelivery:
thi
sontheotherhandrefer
stotheacknowl
edgementto
deli
verthegoodsbyathir
dpart
ysuchasawar ehouseman,whomustacknowledgeto
thebuyerthathehol
dsthegoodsonhisbehal
f.SeeS.29(3)
Thi
salsoappl
i
estosi
tuat
ionswher
ethesel
l
eragr
eest
okeeporst
oreorcar
ryt
he
goodsfort
hebuy
er.
PLACEANDTI
MEOFDELI
VERY
S.
29pr
ovi
desasf
oll
ows:
Thelawhasnotgener
all
yprovi
dedfortimeandplaceofdel
iv
ery.I
tusual
l
ydependson
theagr
eementofthecont
ract
ingpart
ies.Thef
oll
owingrul
esaretobeconsi
der
ed:
Rul
e1
Theplaceofdeliv
eryisthesell
er'
splaceofbusi
ness.Wherehowev erhedoesn'thave
one,hi
sresidencebecomest heplaceofdeli
ver
y.Al
soifthecontracti
sforthesaleof
speci
fi
cgoodsi napar t
icul
arplace,t
henthatpl
acebecomest heplaceofdeli
very.For
i
nstance,whereapersoncont r
actstobuyasetofprint
ingequipment,t
hepremi sesof
thepri
nti
ngcompanywi l
lbetheplaceofdeli
ver
y.
Rul
e2
Timefordeliv
eryisusuall
ynotofessenceinContractofSal
eunlessot
herwiseagr
eed
uponbythepar t
ies.However,wher
ethecontr
actmadenopr ovisi
onastotimeof
sendi
ngthegoods, Thesell
erisboundtosendthem withi
nareasonabl
eti
me.What
const
it
utesreasonableti
mei saquesti
onoffact,
it'
sdetermi
nablefr
om t
he
ci
rcumstancesofeachcase.
Rul
e3
Wheregoodsatt
hetimeofsaleareinpossessi
onofa3rdpart
y,deli
ver
yonlyt
akes
pl
acewhenthe3rdpart
yacknowledgestothebuyert
hathehol
dst hegoodsonhi
s
behal
f.
2
©Just
iceI
smai
lShaf
iiakaOpt
imi
st,(
2022/
2023sessi
on)
Rul
e4
Theincident
al expensesofput
ti
ngthegoodsi
ntoadeli
ver
abl
est
atemustbebor
neby
thesel
lerunlessot her
wisei
sagreeduponbyt
hepart
ies.
DELI
VERYOFWRONGQUANTI
TY
Sect
ion30pr
ovi
desasf
oll
ows:
a.Del
iver
yofLesserQuant
it
y
SS.1stat
esthatwher ethesell
erdeli
versl
esserquanti
tyt
hancontr
actedtosel
l
,the
buyermayrejectthem.Butwher ethebuyeragr
eestoacceptsthegoodssodeli
ver
ed,
hemustpayf orthem attherateagreeduponforthecont
r .SeeBehr
act end&Co.v
ProduceBrokers'Co
b.Del
iver
yofgr
eat
erQuant
it
y
SS.2saysthatwher emor ethantheamountoftheagreeduponisdeli
ver
ed,t
hebuyer
mayacceptorr ej
ectthem inwhole.Hemayalsoacceptthecontr
actedquant
it
yofthe
goodsandrejectthesurplus.I
nbothcases,whereheagreestoacceptt
hegoods,
he
mustthenpayf orthem attherat
eagreeduponforthecontr
act.
Howev er,i
fthev ar
iat
ionist r
if
le,t
hebuy ermaynotbeal l
owedt orej
ectthem because
Lawdoesn' tconcernitselfwit
htrif
les.Demi ni
misnoncur atl
exwi l
lappl
yasi nShipt
on,
Anderson&Co.vVei lBr other
s&Cowher e45OOt onsofwheatwi t
h1O%mor eorl
ess.
Thesellerdeli
vered495Ot onsand551bwi t
houtaskingf
orextrapayment .Thebuyer
soughttoreject.Hewashel dthathecouldnotbecauseoft heDeMi nimisrule.
c.Del
iver
yofMi
xedGoods
SS.3statesthatwherethesell
erdel
iv
erst
hegoodsmi xedwithgoodsofdi
ffer
ent
descr
ipt
ionwhi chi
snotincludedi
nthecont
ract
,thebuyermayacceptthegoodsi
nli
ne
whatheor derandrej
ecttherest
,orhemayrej
ectthewhole.
SS.
4prov
idesthattheef
fectoft
hissect
ioni
ssubj
ectt
othecust
om ofusageoft
rade
bet
weenthepart
ies.
3
©Just
iceI
smai
lShaf
iiakaOpt
imi
st,(
2022/
2023sessi
on)
I
NSTALLMENTALDELI
VERY
S.31(1)provi
desthatabuyerofgoodsisnotboundt oacceptdel
iver
ybyi nstal
l
ment
unl
esst herei
sanagr eementt
othatef
fect.I
fhowev er
,part
iesagreetoinstal
ment al
del
ivery
, t
henremedieswoulddependonwhet herornotthecontr
actisseverable.
Wherethecontr
acti
snotseverable(
eachinstal
mentcan'tbeseparatel
ypai
dfor)and
thesel
lerdef
aul
tsonthedeli
veryoft
hefir
stinstal
mentwhet herastoti
meorquantit
y
ofthedeli
ver
y,t
henthebuyercanrej
ectt
hatandot hersubsequenti
nstal
mental
deli
ver
ies.
I
fhowevert
hesellerdef
aultsonlywiththesecondorsubsequenti
nstal
mentaldel
i
ver
y,
t
henthebuyercannotrej
ect, buthemaybeent i
tl
edtoclai
mf ordamages.Thushe
t
reat
sthesubsequentdefaultasbreachofawar r
ant
ynotofacondi t
ion.
Wher ethecontractisseverable,SS.2ofthissecti
onprovidesthatiti
saquest i
onof
factdependingont hetermsoft hecont r
actorthecir
cumst ancesofthecasewhet her
thebreachmayl eadtorepudiati
onoft hewholecontractorcompensat i
on.Thus,i
n
MapleFl ockCo.vUni versalFurnit
ureProductsLtdLor dHeartstatedthat
: t
heatti
tude
ofthecour ti
nsuchasi tuati
oni stoconsidertherat
ioquantit
ati
velywhichthebreach
bearstot hecontractasawhol eandt heprobabil
i
tyofar epeti
ti
onoft hebreach.
I
nt heli
ghtoftheabovestat
ement ,
wecaninferthatwhet
herabr eachinr
espectofone
i
nstalmentamountstorepudiat
ionoft
hewhol econtr
act,
mai nl
ydependsonthe
quanti
tati
verati
oofthei
nstal
lmenttothewholeandt hel
ikel
i
hoodoft her
epeti
ti
onof
thebreach.
DELI
VERYTOACARRI
ER
S.32(1)stat
esthatdel
iver
ytoacar r
ier(whethernamedforthebuy erorsel
ler)i
spri
ma
faci
edeemedt obedeli
verytothebuyer.Howev er,
suchdel
iverydoesn'taf
fectthe
buyer'
sri
ghttoexamineorrej
ectthegoodsi ffoundcont
rar
yt owhatheor dered.
I
tisnotewort
hyt hati
t'
sthedut yofthesellertomaker easonablecont ractasstated
underSS.2ofthissect
ion.Assucht hesel l
erhasani mpliedauthorit
yanddut ytodo
whateveri
snecessarytosecur etheresponsibil
it
yofthecar r
ierforthesaf edeli
veryof
thegoodshewascont ractedfor.Toef fectthi
s,hemustensur et hatthegoodsar eput
i
ntosuchacour seofconv eyancethatissor easonabl
et hati
nanycaseofal ossor
damagehemaynotbel i
able.
4
©Just
iceI
smai
lShaf
iiakaOpt
imi
st,(
2022/
2023sessi
on)
Wheret
hecont r
actdoesnotpr
ovidef
orr out
eofdel
i
ver
y,t
hesel
l
ermustusear
out
e
whi
chisreasonabl
eundertheci
rcumstances.
Not
ethattheprovi
sionofthi
ssecti
onappl
iestoFr
eeonBoar dContr
act(
F.O.
B.)wher
e
t
hesell
er'
sobli
gati
onissimplyt
oplacethegoodsonboardashipnamedbythebuyer
,
t
husful
fi
ll
ingthesel
ler'
sobli
gat
iontodel
iv
erthegoods.SS.
3
Incontr
ast,
theeffectofthi
ssectiondoesnotcov ercertai
ncategor yofcontr
actswhich
arecaledC.
l I
.Fcont r
act(ContractofCost,InsuranceandFr ei
ght).Inthesecontr
acts,
i
tisthedeli
veryoftheshippi
ngdocumentt othebuy erthatrepresentsthesell
er'
s
obli
gati
ontodeli
verthegoodsandcl aim payment .Thisdoesn'talsoapplytothe
commonl awrulethatthecarr
ierisnotnormal l
ytakent obet hebuy er'
sagentforthe
purposeofexaminingandaccept i
ngthegoods.SeeNor manVPhi l
ips.
Ri
skWher
eGoodsAr
eDel
iv
eredAtDi
stantPl
ace
S.33prov
idest
hatwherethesel
leragreest
odeli
vergoodsathisownr i
skataplace
othert
hanwheretheyarewhensold,t
hebuyernevert
hel
ess,unl
essotherwi
seagreed,
takeanyri
skofdeter
ior
ati
onint
hegoodsnecessar i
l
yinci
dental
tothecourseoftransi
t.
Simil
ar l
y,i
fthesell
eragr
eestodel
ivergoodsatthebuyer'
spremi
sesandwi t
hout
negli
gence, deli
ver
sthem t
osomeonet herewhoappearstobeauthor
isedt
or ecei
ve
them, andthatpersonmisappr
opr
iatesthem,thel
ossfal
lsonthebuyerandnotthe
sell
er.SeeGal brai
th&GrantLt
dVBl ock(1922)
Itshouldbenotedhowev erthatasel
lerofperi
shablegoodswillnotbeprotect
edbythi
s
section,whodispat
chest hem i
nsuchacondi t
ionthattheywi
lli
nevitabl
ydeter
ior
atei
n
thecour seofanormal j
ourney.Hewi
llthusbei nbreachofhi
simpliedwarrant
yof
mer chantabl
econdit
ion.SeeBeervJosephI .EmmanuelLt d
ACCEPTANCEANDREJECTI
ONOFTHEGOODS
S.34(
1)pr
ovi
dest
hatabuy
erwhohadnotpr
evi
ousl
yexami
nedt
hegoodssodel
i
ver
ed,
hasther i
ghtt oexaminet hem bef
oreaccept
ing.Suchabuy ermustbegiv ena
reasonabl
eopportuni
tytoexaminesuchgoodsast oascert
ainthei
rconfor
mi tywi
th
whathecont ract
edforaccordi
ngtoSS.2.Howev er
,whereuponexami nati
onhef i
nds
thatthegoodsdonotconform wit
hthetermsofthecontract
,hecanrejectthem.
5
©Just
iceI
smai
lShaf
iiakaOpt
imi
st,(
2022/
2023sessi
on)
S.
35pr
ovi
dest
hatabuy sde
eri emedt
ohaveaccept
edt
hegoodswher
e:
a)hei
nti
mat
est
othesel
l
ert
hathehasaccept
edt
hem or
,
b)af
terthegoodshavebeendel
i
ver
edtohim,hedoesanyacti
nrel
ati
ontot
hem which
i
sinconsist
entwi
ththeowner
shi
pofthesel
l .Har
er dy&co.VHil
ler
nsandFowl
er(1923)
c)heret
ainst
hegoodswi t
houti
nti
mat
ingt
othesel
l
ert
hathehasr
eject
edt
hem af
ter
thel
apseofareasonabl
etime.
Thepr
inci
palef
fectofaccept
ancei
sthatthebuy
erl
osesther
ightt
orej
ectt
hegoods
andmusttr
eatbreachofcondi
ti
onasbreachofwar
rant
y.
Thelawhasi tthatwherethebuyeraccept
spartofthegoods, heisdeemedt ohav e
acceptedthewhol eunl
essotherwisei
sagreeduponorwher et hecontr
actisseverabl
e.
Also,wherethegoodshav ebeenacceptedandtherightt
orejectthem isbarr
ed,the
ri
ghttoresci
ndt hecontr
actisinthesamev ei
nbared.SeeLeafVI
r nt'
lGall
eri
es
CONSEQUENCESOFREJECTI
ONOFGOODS
1.S.36pr ov i
desthatwher
egoodsarereject
edbythebuyer,i
t'
snottheresponsibi
l
ity
ofsuchbuy ertoretur
nthem t
othesell
er,
solongasheinformsthesell
erofsuch
rej
ect
ionunl esstheter
msofthei
ragreementmakesapr ovi
siontot
hateffect..See
MaryAjayiVAl ice
2.Wherethebuy
erexer
ciseshi
sri
ghtofr
eject
ion,
hei
snotboundt
opayt
hepr
iceof
thegoods.
3.Hemayal
socl
aimf
ordamagesagai
nstt
hesel
l
erf
ornon-
del
i
ver
y.
4.Rej
ecti
onofgoodsr
ever
tspr
oper
tyi
ngoodst
othesel
l
eri
fithadal
readypassedt
o
thebuyer
.