Commercial Law - Sales of Goods - Essay Example

224). A major requirement of these rules is that the goods have to be in a deliverable state and that they should be ascertainable, for the transfer in the property of these goods is to transpire. In addition, if the parties to the contract of sale so desire, the property passes from the seller to the buyer. This is in accordance with the provisions of sections 18 to 20 of the Sale of Goods Ordinance. In order to determine whether a party to a contract of sale has property over the goods in question, the courts of Hong Kong apply the law of contract of sale.

In instances involving a third party, proprietary rights are established by taking recourse to the rules of the common law. Some contracts of sale of goods are made in a foreign nation (Barber). In such transactions the transfer of property in the goods is governed by the law of the nation where the goods had been located at the time of their sale. In the context of personal property that had been disposed of in a manner that was binding, as per the law of the nation where this property had been located at that time, such disposition has a binding nature in any country (Barber).

It is only on being separated from the bulk that goods no longer remain unascertained. Property in such goods does not pass until these goods are separated from the bulk. . 415). Under the provisions of the Sale of Goods Ordinance, a contract is termed a sale, if the property in the goods is transferred to the buyer from the seller. On the other hand, if the transfer of the property in the goods transpires at a later date or if the transfer is to take place only if some condition is to be satisfied, then the contract is termed a sale agreement (Sale of goods).

Section 3(4) of the Sale of Goods Ordinance states that a sale agreement is transformed into a sale, when the time passes or the stipulated conditions governing the transfer of property in the goods are fulfilled. Moreover, section 3(2) of the Sale of Goods Ordinance states that a contract of sale could be conditional or absolute. Since the buyer had paid the sale amount and asked the seller to retain the goods for 4 days, the sale transaction had been completed and Kowloon Tong Squash Club had become the owner of the goods as per the provisions of Sale of Goods Ordinance The provisions of section 27 of the Sale of Goods Ordinance, address situations wherein the seller of goods remains in possession of the same or the documents relating to their title.

In such instances, if a buyer purchases these goods from the seller, then the buyer may obtain good title. It is to be construed that the seller had been explicitly authorised by the buyer in the prior sale. However, the buyer in the subsequent sale should have acted without notice of the prior sale and in good faith (Mau, 2006, p. 288). There are two situations that could arise, whenever the owner of some property legally parts with its possession. First, the owner intends to exercise exclusive control over the property, which deprives the receiver of the property of any possessory rights.