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

In relation to the Sale of Goods Act:

i) Explain four rules that govern delivery of goods.

ii) Outline the circumstances under which the unpaid seller may exercise his right of lien.

ANSWER

i) Four rules that govern delivery of goods

• 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 by 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