A, the holder of the bill of lading, re-sells the goods to B who pays the money. Does B acquire interest in the goods?
Find the answer to the Law of Sale of Goods only on Legal Bites.
Question: A, the holder of the bill of lading, re-sells the goods to B who pays the money. Does B acquire interest in the goods?Find the answer to the Law of Sale of Goods only on Legal Bites. [A, the holder of the bill of lading, re-sells the goods to B who pays the money. Does B acquire interest in the goods?]AnswerIn the context of the Sale of Goods Act, when A (the holder of the bill of lading) re-sells the goods to B and B pays the money, the crucial aspect to determine B's interest in...
Question: A, the holder of the bill of lading, re-sells the goods to B who pays the money. Does B acquire interest in the goods?
Find the answer to the Law of Sale of Goods only on Legal Bites. [A, the holder of the bill of lading, re-sells the goods to B who pays the money. Does B acquire interest in the goods?]
Answer
In the context of the Sale of Goods Act, when A (the holder of the bill of lading) re-sells the goods to B and B pays the money, the crucial aspect to determine B's interest in the goods is whether there has been a valid transfer of ownership.
Under the Sale of Goods Act, the transfer of ownership of goods is crucial because it determines who holds the legal title to the goods. The general rule is that ownership in goods passes from the seller to the buyer when the parties intend it to pass. Intent is typically determined by the terms of their agreement, which could be express or implied.
Key factors that may be considered to establish the intention of the parties include:
• Delivery of the Goods: If the goods have been physically delivered to B, it may suggest an intention to transfer ownership.
• Payment of the Purchase Price: If B has already paid the money, it could be a strong indication of an intention to transfer ownership.
• Transfer of the Bill of Lading: The Bill of lading is an important document in the context of international trade. If the bill of lading is endorsed (signed over) by A and handed over to B, it may indicate the intention to transfer ownership.
• Terms and Conditions of the Sale: The specific terms and conditions agreed upon by A and B will also play a significant role in determining when ownership passes. For example, if they explicitly agree that ownership transfers on payment or delivery, it will be crucial in establishing B's interest in the goods.
If the transfer of ownership is successful and valid, B will acquire an interest in the goods. They will become the rightful owner with all the associated rights and responsibilities.