Commercial Law - Sales of Goods - Essay Example

Emily accepted this proposal and handed over the scarf to Andrea for cleaning. Christine, who saw the scarf in the shop, instantly decided to purchase the scarf. Accordingly, she offered a very lucrative amount for it. Andrea accepted this offer and gave the scarf to Christine. Later on Emily came to know of this transaction and made a strong resolve to get back her scarf from Christine. Issues For advising Emily and Christine in respect of their rights regarding the possession of the scarf, the issues to be addressed are: Whether there was a contract of sale between Andrea and Emily.

Whether Andrea possesses title to the scarf which was sold to Christine. Whether Emily got any remedy under the provisions of sale of goods Act. Whether Christine’s sale transaction with Andrea is a legally valid one. Rule of law As per the provisions of section 2(1) of the Sale of Goods Act 1979, a contract of sale is one in which the seller either transfers or accepts to sell the property in goods to another person called the buyer for a consideration which can be termed as price. As per section 21 of the Sale of Goods Act 1979, an individual without title in the goods cannot transfer the same to others Application Since, Emily had paid for the scarf and taken possession, she had become its owner, as per the provisions of the Sale of Goods Act 1979.

Thus, she possesses title to the property. . In bailment, mere possession of the goods is given and there is no transfer of property in the goods. A bailment involves a transfer of possession in the goods. On the other hand, a sale results in the transfer of the general property in the goods. In instances, wherein there is a hire purchase agreement or a return transaction, the bailee may obtain property in the goods from the bailor (Macleod, 2002, p. 22). The bailor has the right to claim a return of the goods bailed, the moment that the purpose of such bailment has been realised.

In the event of any delay by the bailee in returning these goods, the bailor can claim compensation. The remedy for failure by the bailee to take proper care of the goods is damages. On occasion, the risk and property in goods sold could have been transferred to the buyer and the seller could be duty bound to deliver goods to the buyer. In such instances, any ensuing damage to the goods resulting from the negligence of the seller has to be compensated for by the provision of damages to the buyer (Title and Passing of Property).

However, in such cases, the buyer cannot reject the goods. As such, in a contract of bailment, the goods are delivered with the condition that the goods are to be returned to the owner or some other party. Despite the fact that the holder of the goods in a contract of bailment possesses certain obligations and rights, the title in the goods does not pass to that person (Sale of goods: contract, property and risk). The bailee does not hold good title, since property in goods is not transferred.

Section 21(1) of the Sale of Goods Act 1979, enjoins a general rule. This rule declares that it is not