Business/commercial law question and answer

  • In relation to the Sale of Goods Act:
    • Explain four rules that govern delivery of (8 marks)
    • Outline the circumstances under which the unpaid seller may exercise his right of lien.

ANSWER
• Unless otherwise agreed, the place of delivery is the sellers place of business if any, if not, his residence.
• If specific goods, the subject matter of the contract are in some other place known to the parties, that other place is the place of delivery.
• If the goods are in the hands of a third party, delivery is complete when the third party acknowledges to the buyer that he holds the goods on his behalf.
• If the seller is bound to transmit the goods to the buyer, he must do so within the stipulated or reasonable time.
• Unless otherwise agreed, the cost of and incidental to putting the goods into a deliverable state is borne the seller.

(ii) Under the provisions of the Sale of Goods Act, the unpaid sellers lien is exercisable if:
• If the buyer becomes insolvent
• If the goods have not been sold on credit
• If the goods have been sold on credit but the term of credit has expired



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