(IJornfU fcui ^rlyool library Cornell University Library KD 1650.C43 1920 The Sale of Goods Act, 1893 :lncludlng t 3 1924 022 471 605 Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924022471605 THE SALE OF GOODS ACT, 1893, INCLUDING THE FAOTOES ACTS, 1889 & 1890. BUTTERWORTHS' "COMMERCIAL LAW" SERIES Of Elementary Legal Text-Books for Comtneroial Classes. 1. Stevens' Mercantile Law- Fourth Edition. By Herbeki Jacobs, BaiTister-at-Law. 1903. Price 12s. ed. net ; postage 9d: extra. %* Selected by the Institute of Chartered Accountants in England, the Incorporated Society of Accountants, the Institute of Secretaries, University College, Cardiff, etc., etc., as a text-book for their examinations. 2. Underbill's taw of Partnership. , , . By A. Undbkhill, M.A., VL.D., one of the Conveyancing Counsel of the HighCourt. Second Edition. 1906. Price IDs. ed. net ; postage 9d. extra. %* Selected by the Institute of Chartered Accountants for Ireland as text-book. 3. Redman's Law of Arbitrations and Awards. Fourth Edition, fey J. H. REDMAN, Barrister-at-Law. (Dec.) 1903. Price 20s. net ; for cash, postage Is. extra. ■' *,* Selected by the Institute of Chartered Accountants, the Incor- porated Society of Accountants, etc., as a text-book for their examina- tions. 4. Robbins and Maw's Law of Executors and Administrators. Fourth Edition. By L. G. G. BOBBINS, of Lincoln's Inn, Barrister-at- Law, and F. T. MAW, Barrister-at-Law. 1908. Price 20s. net ; postage Is. extra. *»* Selected by the Incorporated Society of Accountants, the Cardiff Borough Technical School, as a text-book for their examinations. 5. Topham's Company Law. Second Edition. By Alfred F. Topham, LL.M., of Lincoln's Inn, Barrister-at-Law, Assistant Reader in Equity to the Council of Legal Education. 1907. Price 7s. Bd. net tor cash ; postage 8d. extra. "To students we would say, 'read any other book yoii like, but don't go in for your examination without studying your " Topham " thoroughly. ' "Students' Telephone. 6. Pratt's Income Tax Acts. Seventh Edition. By J. H. REDMAN, of the Middle 'Temple, Barrister- at-Law. 1904. Prioe-9s. 6d. net ; postage 9d. extra. *** Recommended by the Society of Accountants as a text-book for their examinations. 7. Sykes' Banking and Currency. Second Edition By Ernest Sykes, B.A., Oxon., formerly of the London and County Bank, Lecturer on Banking and Currency to the London Chamber of Commerce. 1908. Price 5s. net ; postage 5d. extra. *f* Appointed as a text-book by the Institute of Bankers for their examinations. 8. Clemson's Methods and Machinery of Business. By H. Clemson, Diploma, London Chamber of Commerce, Lecturer at principal London Commercial Institutes. New edition in preparation. " We congratulate the author, who is a practical teacher, upon the compilation of a work so admirably suited to the commercial student," — Chamber of Commerce Journal. 9. Steele's Present Day Banking. By Francis E. Steele, Fellow of the Institute of Bankers, sometime Lecturer on Banking and Currency to the London Chamber of Com- merce. 1009. Price 5s. net ; postage 5d. extra. " The volume fulfils all the purposes of an admirable little Encyclo- paedia of HsmViuig."— Daily Mail. jEhdl pa/rticulars of all tJie above post free, on application to BUTTERWORTH & CO., Bell Yard, Temple Bar, W.C. THE SALE OF GOODS ACT, 1893, INCLUDING ■ THE FACTORS ACTS, 1889 & 1890. ■ \ SiE M. D. CHALMERS, K.C.B., O.S.I., (draftsman of the act), fobmbrlt parliamentary codnsbt to the treasdry, judge of county COURTS, AND LAW MEMBER OP THE VICBBO'B'S COUNCIL IN INDIA, ETC. EIGHTH EDITION. LONDON : BUTTEEWOETH & CO., Bell Yard, Temple Bab. SYDNEY: BUTTBRWORTH & CO. (AUSTRALIA), LTD. CALCUTTA: BUTTEEWOBTH & CO. (INDIA), LTD. WINNIPEG : BUTTBRWORTH & 00. (CANADA), LTD. WELLINGTON (n.Z.) : BUTTBRWORTH & CO. (AUSTRALIA), LTD. 1920, PEINTED BY WILLIAM CLOWES AND BONP, LIMITED. LONDON AND BBCCLES. PREFACE In this Edition the Notes have been revised, some have been re- written, and some fresh notes have been added. Since the last edition no statute has been passed directly affecting the Sale of Goods Act. The Larceny Act, 1861, has been repealed, and re-enacted by the Larceny^ Act, 1916, and section 45 of the latter Act, which deals with the restitution of stolen property, expressly saves the provisions of the Sale of Goods Act (pp. 71, 172). The Eegistration of Business Names Act, 1916, imposes disabilities on traders who are required to register under that Act, and do not do so (p. 17). The Profiteering Act, 1919, and the action of the Food Controller, under his statutory powers, temporarily abrogate the freedom of contract as regards price, which is recognised by section 8 of the Sale of Goods Act. Cases arising out of the contract of sale have been numerous during recent years. In so far as they turn upon the construction of the Act, I hope they have been carefully noted, but in so far as they illustrate general principles of the law of contract, they have been only lightly touched on. Many of the cases reported during the last five years have arisen out of the dislocation of commerce caused by war, and it is to be hoped that they are only of temporary interest. In Ertel Bieber d; Co. v. Rio Tinto Co., the House of Lords has summed up the law of trading with the enemy so far as regards contracts of sale. Four other judgments of the House of Lords or Privy Council are of special interest. In The Parchim, Lord Parker lays stress on the VI PREFAOE general uniformity of the mercantile laws of all commercial nations, and establishes the principle that, as the Sale of Goods Act is a codifying Act, its provisions may be applied in construing foreign as well as British contracts of sale, unless and until the foreign rule is proved to differ from ours (p. 143). In 11.8. Steel Products Co. V. G. W. Railway the House of Lords have settled the conflicting rights of the unpaid seller who stops goods in transitu, and of the carrier who has a lien upon them (p. 105). In Yangtsze Ins. Assn. V. Luk Manjee Lord Sumner, with his usual lucidity, explains the rights and duties of the parties to an ex-ship contract (p. 88). In Biddell Bros. v. ^. Clemens Horst & Co. Lord Justice Kennedy, in a judgment which is expressly adopted by the House of Lords, illuminates the whole scope of the c.ii. contract and its relation to the Sale of Goods Act. Many references are made to this judgment. It may be noted that recent decisions show an in- creasing desire to give effect to trade usages^ on the ground that the parties intend to contract with reference to them, and very explicit language must be used to exclude their operation. I am indebted to Mr. Gerahty, of the Middle Temple, for the completion of the list of foreign countries which have adopted the English Act with or without variations. M. D, C. October, 1920. INTRODUCTION TO FIRST EDITION. It is difficult to know whether to call this little book a first edition or a second edition. It is a first edition of the Sale of Goods Act, 1893, but it is a reproduction of my book on the Sale of Goods, published in 1890, which was in substance a commentary on the Sale of Goods Bill. The clauses of the Bill, with a few verbal alterations, formed the large type propositions of the book. But though the language of the propositions remains the same, its effect is now very different. Those propositions were only law in so far as they were correct and logical inductions from the decided cases. Now the position is reversed. The propositions have become sections of the Act, and the decided cases are only law in so far as they are correct and logical deductions from the language of the Act. Each case, therefore, must be tested with reference to the Act itself. But it may be none the less useful to the reader to call his attention to the decisions which formed the basis of the various sections, and which were intended to be reproduced in the Act. In so far as the law is unaltered, they are still in point as illustrations. The history of the Act is as follows : The Bill was originally drafted by me in 1888. I then settled it in consultation with Lord Herschell, who kindly consented to take charge of it. In 1889, Lord Herschell introduced it in the House of Lords, not to press it on, but to get criticisms on it. In 1890 there was no opportunity of proceeding with it, but in 1891 the Bill was again introduced in the Lords, and referred to a Select Committee. It had in the mean time been criticised by Lord BramweU, ilr. Walter VUl INTRODUCTION TO FIRBT EDITION. Ker, and other friends, and the Bar Committee had submitted a valuable memorandum on it. In the Lords it was carefully con- sidered by a Select Committee, consisting of Lords Herschell, Halsbury, Bramwell, and Watson. A question arose as to its extension to Scotland, so the Bill stood over till 1892. It was then again introduced in the Lords, and extended to Scotland, on the advice of Lord Watson, who had consulted various Scotch legal authorities. Professor Eichard Brown and Mr. Spens of Glasgow took an infinity of pains to suggest the necessary amendments. In 1893 the Bill was again passed through the Lords in the form in which it was settled in 1892. It was then considered by a Select Committee of the House of Commons and further amended. The Committee consisted of Sir Charles Russell, A.G., Sir R. Webster, Q.C., Mr. Asher, Q.C. (the Scotch Solicitor-General), Mr. Shiress Will, Q.C., Mr. Bousfield, Q.C., Mr. Ambrose, Q.C., and Mr. Mather. Some of the amendments introduced by the Commons were modified on its return to the Lords, and it was finally settled in its present form. The Bill, in its original form, was drafted on the same lines as the Bills of Exchange Bill. On Lord Hersohell's advice it endeavoured to reproduce as exactly as possible the existing law, leaving any amendments that might seem desirable to be introduced in Committee on the authority of the Legislature. So far as England is concerned, the conscious changes effected in the law have been very slight. They are pointed out in the notes to the various sections. As regards Scotland, in some cases the Scottish rule has been saved or enacted for Scotland, in others it has been modified, while in others the English rule has been adopted. These points are noted under the sections as they arise. Scottish law differs from English law mainly by adhering to the Roman law in matters where English law has developed a rule of its own. The Mercantile Law Commission of 1855 reported on this question, and recom- mended that on certain points the Scotch rule should be adopted in England, while on other points the English rule should be adopted in Scotland. The recommendations of the Commission were partially embodied in the English and Scotch Mercantile Law Amendment INTRODUCTION TO FIRST EDITION. IX Acts of 1856. The result was curious. Either by accident or design certain rules were enacted for England which resembled, but did not reproduce, the Scotch law, while other rules were enacted for Scotland which resembled, but did not reproduce, the English law. The present Act has carried the process of assimilation 'somewhat further. It is perhaps to be regretted that the process has not been completed; but future legislation may accomplish that. It is always easier to amend an Act than to alter common law. Legislation, too, is cheaper than litigation. Moreover, in mercantile matters, the certainty of the rule is often of more importance than the substance of the rule (a). If the parties know beforehand what their legal position is, they can provide for their particular wants by express stipulation. Sale is a consensual contract, and the Act does not seek to prevent the parties from making any bargain they please. Its object is to lay down clear rules for the case where the parties have either formed no intention, or failed to express it. As regards this edition, I have not attempted to expound or criticise the mass of cases which illustrate or are modified by the Act. Such a work could hardly be undertaken with any prospect of success until the Act has been for some time in operation. I have only sought to indicate the sources of the various provisions in the Act, and to elucidate the general principles of the law of sale by citations from eminent judges. Our common law is rich in the exposition of principles, and these expositions lose none of their value now that the law is codified. A rule can never be appreciated apart from the reasons on which it is founded. I have compared the main propositions 'of the English law with the corresponding provisions of the Code Napoleon, which is the model on which most of the Continental Codes have been framed (6). On the one hand, the scope and effect of a principle (a) Of. Lockyer v. Offley, 1 T. E., at p. 259. (6) A note has been added at p. 144 giving references to Colonial Acts which have adopted and re-enacted the provisions of the English Sale of Goods Act for their respective territories. Since the fourth edition of this book was published, Germany has enacted a new civil code for her empire. The German Civil Code of 1900 is a notable addition to legal theory and practice. Its main provisions, relating to sale are collected in a sub-heading of the chapter dealing with " Obligatory Relations." C.S.G. ^ X INTRODUCTION TO FIRST EDITION. are "of tea best brought out by contrast ; on the other hand, where any rule of municipal law is found to be generally adopted in other countries, there is a strong presumption that the rule is founded on broad grounds of expediency, and that its application should not be narrowed. The Eoman lawyers were justified in attaching a peculiar value to those rules of law which were jitris gentium. 1 have also made frequent reference to Pothier's Traite du Contrat de Venfe. Although published more than a century ago — for Pothier died in 1772 — it is still, probably, the best reasoned treatise on the Law of Sale that has seen the light of day. "The authority of Pothier," says Best, C. J., " is as high as can be had next to the decision of a court of justice in this country " (c). This statement must obviously be taken with the qualification that it only holds good when Pothier is discussing some principle of general applica- tion; for the law he was particularly dealing with was French law, as modified by the custom of Orleans, before the Code Napoleon. The references to the Oivil Law need little comment. It is the foundation of the Scottish law, and it is an inexhaustible store of legal principles. There is hardly a judgment of importance on the law of sale in which reference is not made to the Oivil Law. " The Koman law," says Tindal, 0. J., " forms no rule binding in itself on the subjects of these realms ; but in deciding a case upon principle, where n(> direct authority can be cited from our books, it affords no small evidence of the soundness of the conclusion at which we have arrived, if it prove to be supported by that law — the fruit of the researches of the most learned men, the collective wisdom of ages, and the groundwork of the municipal law of most of the countries of Europe " (d). My task of reference in this edition has been much But the scheme of the German Code is so widely different from the lines on which . the Sale of Goods Act is framed, that any attempt at comparison would be futile . unless explained by a detailed discussion, which would be unsuitable to a small manual .such as this. (c) Cox V. Troy (1822), 5 B. & Aid. 481 ; c/. M'Lean v. Olydesdale Bank (1883), 9 App. Gas., at p. 105, per Lord Blackburn. (d) Acton V. Blundell (1843), 12 M. & W., at p. 324 ; cf. Keighley v. Durant [1901] A. 0., at p. 244, ' INTBODUOTION TO FIRST EDITION. XI facilitated by Dr. Moyle's excellent monograph on the Contract of Sale in the Civil Law, published in 1892. To facilitate reference to contemporaneous reports, the date of each case cited has been given. M. D. Chalmbks. Birmingham County Coubt, 1894. CONTENTS. Pkeface xo Eightu Edition . . ''^'^^ Introduotion to First Edition • • • . • Table of Statutes Cited lABLE OF Cases Citbd XIX SECT PART I. FOBMATION OF THE CONTEACT. Contract of Sale. 1. Sale and agreement to sell 1 Gapacity of Parties. 2. Capacity to buy and sell . . 12 Formalities of the Contract. 3. Contract of sale, how made 17 4. Contract of sale for £10 and upwards 18 Subject-matter of Contract. 5. Existing or future goods 25 6. Goods which have perished 27 7. Goods perishing before sale but after agreement to sell . ... 28 The Price. 8. Ascertainment of price 30 9. Agreement to sell at valuation 32 Conditions and Warranties. 10. Stipulations as to time of payment ....... 83 11. When condition to be treated as warranty 36 XIV go:ntent8. ■ 12. Implied undertaking as to title, etc. . ., . • - ■ 13. Sale by description 14. Eule of caveat emptor. Implied condition as to quality or fitness 15. Sale by sample riSB 38 40 42 48 PART 11. Bl'FECTa OP THE CONTKAGT. Transfer of Property as hetween Seller and Buyer. 16. Goods must be ascertained 17. Property passes wben intended to pass 18. Rules for ascertaining intention 19. Reservation of right of disposal 20. Risk primix facie passes -with property Transfer of Title. 21. Sale by person not the owner 22. Market overt 23. Sale under voidable title 24. Revesting of property in stolen goods on conviction of offender 25. (1) Disposition by seller remaining in possession . (2) Disposition by buyer obtaining possession 26. Effect of writs of execution 51 52 54 60 62 64 67 69 70 72 72 74 PART III. Performance of ike Contract. 27. Duties of seller and buyer 76 28. PajTuent and delivery are concurrent conditions 77 29. Rules as to delivery _ .... 78 30. Delivery of wrong quantity 81 31. Instalment deliveries 82 32. Delivery to carrier 84 33. Risk where goods are delivered at distant place 88 34. Buyer's right of examining the goods 89 35. Acceptance 90 36. Buyer not bound to return rejected goods 91 37. Liability of buyer for neglecting or refusing delivery of goods . . 91 CONTENTS. XV PART IV. Eights of Unpaid Seller against the Goods. *''™- PACK 38. Unpaid seller defined 93 39. Unpaid seller's rights 94 40. Attachment by seller in Scotland .96 Unpaid Seller's Lien. 41. Seller's lien 96 42. Part delivery 98 43. Termination of lien 99 Stoppage in Transitu. 44. Right of stoppage in transitu 100 45. Duration of transit . . 102 46. How stoppage i« irawsto is effected 105 Re-sale hy Buyer and Seller, 47. Effect of sub-sale or pledge by buyer 106 48. Sale not generally rescinded by lien or stoppage in transitu . . . 109 PART V. ; Actions for Breach of the Contbacx. Remedies of the Seller. 49. Action for price Ill 50. Damages for non-acceptance 114 Remedies of the Buyer. 51. Damages fornon-delivery ; . 115 52. Speciiic performance 120 53. Kemedy for breach of warranty 120 54. Interest and special damages 123 PART VI. Supplementary. 55. Exclusion of implied terms and conditions . . ... 126 56. Reasonable time a question of fact 128 XVI CONTENTS. SECT. 57. 58. 59. 60. 61. Rights enforceable by action Auction sales Payment into Court in Scotland wlieo breach of warranty alleged Repeals Savings ... 62. Interpretation of terras . 63. Commencement . . 64. Short title Schedule (of repeals) . PAGE 128 129 131 131 131 133 142 143 145 THE FACTORS ACT, 1889 (52 & 53 Vict. c. 45) Preliminary (Definitions) .... Dispositions by mercantile agents Dispositions by sellers and buyers of goods ■Supplemental ,•.... THE FACTORS SCOTLAND ACT, 1890 (53 & 54 Vict. c. 40) APPENDIX I.— Statutes. 18 & 19 Vict. c. Ill (Bills of Lading Act, 1855) . 41 & 42 Vict. c. 31, s. 4 (Bills of Sale Act, 1878) 50 & 51 Vict. c. 28, s. 17 (Merchandise Marks Act, 1887) . 54 & 55 Vict. c. 39, in part (Stamp Act, 1891) . 1 Edw. 7, c. 7 (Finance Act, 1901),-in part .... 5 Edw. 7, c. 4 (Finance), in part 7 Edw. 7, c. 23 (Criminal Appeals, Restitution of Stolen Goods), in part 8 & 9 Geo. 5, c. 50, s, 45 (Larceny, Restitution) 163 166 167 168 170 171 171 172 APPENDIX II.— Notes. ■ Note A. Use of the Terms Contract, Condition, and Warranty Note B. Construction of Terms and Conditions . Note C. Delivery to Carrier 174 181 189 TABLE OF STATUTES. PAGE (Stolen Goods, 1529) 70 (Market and Pair, 1643) 68 (Sale of Horses, 1555) 68 (Sale of Horses, 1589) 68 (Statute of Frauds, 1677) 4, 17, 20, 21, 25, 60, 74, 90, 91, 99, 137, 143, 149, 157 (Max and Hempseed (Ireland) Act, 1810) 42 (Factors Act, 1823) 146,160 (Factors Act, 1826) 149,151,154,155,160 (Statute of Frauds Amendment Act, 1828) 20, 21, 25 (Civil Procedure Act, 1833) 113 (Banlc of England Act, 1 833) 112 (Factors Act, 1842) ... 66, 149, 150, 161, 153, 154, 155, 160 (Auctioneers Act, 1845) 130 (Bills of Lading Act, 1855) ... 66, 79, 108, 109, 163,165 (Mercantile Law Amendment (Scotland) Act, 1866) 47, 54, 95, 96 (Mercantile Law Amendment (England) Act, 1866) 74, 120 (Law of Property Amendment Act, 1869) 3 (Larceny Act, 1861) 68,71 (Hop (Prevention of Frauds) Act, 1 866) 42 (Criminal Law Amendment Act, 1867) 173 (Sales of Land by Auction Act, 1867) 130 (Coinage Act, 1870) 12 (Judicature Act, 1873) 133 (Lifants' Relief Act, 1874) 14 (Sale of Food and Drugs Act, 1 875) 42 (Factors Act, 1877) ... 107, 110, 147, 162, 156, 157, 158, 159, 160 (BiUs of Sale Act, 1878) 7, .65, 132, 136, 149, 166, 167 (Summary Jurisdiction Act, 1879) 71,173 (Conveyancing Act, 1881) 39,133 (Bills of Sale Act (1878), Amendment Act, 1882) 7, 132, 167 (Bills of Exchange Act, 1882) 143,152 (Married Women's Property Act, 1882) ... 3, 14 (Merchandise Marks Act, 1887) 42,45,167 (Factors Act, 1889) ... 6, 8, 66, 72, 73, 79, 81, 106, 107, 108, 110, 119, 136, 146—161 52 & 53 Vict. 0. 63. (Interpretation Act, 1889) 17, 19, 143 21 Hen. 8, o. 11. 34 & 35 Hen. 8, c. 26. 2 & 3 Phil. & ; Mary. 31 Eliz. c. 12 1^ 29 Car. 2, c. : 3. 60 Geo. 3, c. 82. 4 Geo. 4, c. 83. 6 Geo. 4, c. 94. 9 Geo. 4, c. 14. 3 & 4 Will 4 , c. 42. 3 & 4 WiU. 4 , c. 98. 5 & 6 Vict, c, .39. 8 & 9 Vict, c, , 15. 18 & 19 Vict. 0. 111. 19 & 20 Vict. c. 60. 19 & 20 Vict. 0.97. 22 & 23 Vict. c. 35. 24 & 25 Vict. c. 96. 29 & 30 Vict. 0.37. 30 & 31 Vict. c. '35. 30 & 31 Vict. c. 48. 33 & 34 Vict. 0. 10. 36 & 37 Vict. c. 66. 37 & 38 Vict. c. 62. 38 & 39 Vict. c. 63. 40 & 41 Vict. c. 39. 41 & 42 Vict. c. 31. 42 & 43 Vict. c. 49. 46 & 46 Vict. c. 41. 46 & 46 Vict. c. 43. 45 & 46 Vict. c. 61. 45 & 46 Vict. c. 76. 60&^1 Vict. c. 28. 52 & 53 Vict. c. 45. XVlll TABLE OF STATUTES. 53 & 54 Viot. c. 39. 53 & 54 Vict. c. 40. 53 & 54 Vict. c. 53. 64 & 55 Vict. c. 35. 54 & 55 Vict. c. 39. 56 & 67 Viet. o. 63. 57 & 58 Vict. c. 60. 62 & 63 Vict. c. 23. 1 Edw. 7, c. 7. 5 Edw. 7, 0. 4. 7 Edw. 7, c. 23. 8 Edw. 7, c. 49. 8 Edw. 7, c. 69. 3 & 4 Geo. 5, c. 20. 4 & 5 Geo. 5, c. 14. 4 & 6 Geo. 5, c. 59. 5 & 6 Geo. 5, c. 98. 6 & 7 Geo. 5, c. 50. 6 & 7 Geo. 5, c. 58. 9 & 10 Geo. 6, c. 66. (Partnership Act, 1890) (Factors (Scotland) Act, 1890) 65, (BiUs of Sale Act, 1890) 7, (BiUs of Sale Act, 1891) 7, (Stamp Act, 1891) (Married Women's Property Act, 1893) (Merchant Shipping Act, 1894) (Anchors and Chain Cables Act, 1899) (Finance Act, 1901) (Finance Act, 1905) (Criminal Appeal Act, 1907) (Statute Law Revision Act, 1908) (Companies (Consolidation) Act, 1908). (Bankruptcy (Scotland) Act, 1913) (Currency and Bank Notes, 1914) (Bankruptcy Act, 1914) ... 65, 74, 132, (Trading with the Enemy Act, 1915) (Larceny Act, 1916) 71,72, (Registration of Business Names Act, 1916) (Profiteering Act, 1919) I'AGK ... 67 73, 138, 155, 160, 162 132, 150, 167 132, 150, 167 4, 168—170 ... 3, 14 17, 138 ... 42 170—171 ... 171 71, 171, 172 143, 160 7 ... 132 ... 112 136, 152, 159 ... 16 159, 172, 173 ... 17 ... 31 TABLE OF CASES. PASIS Abbot V. Wolsey, [1895] 2 Q. B. 97, C. A 19, 22 Acebal t>. Levy (1834), 10 Bing. 376 30 Acmo Wood Co. w. Sutherland Innes & Co. (1904), 9 Com. Cas. 170 ... 185 Acramam;. Morrice (1849), 8 C. B. 449 ; 18 L. J. C. P. 67 55 AgiusD. Great Western CoUiery Co., [1899] 1 Q. B. 413, C. A 125 Aird V. PuUan (1904), 7 F. 268 37 Aitken «;. BouUen (1908), 10 P. 490, Ct. of Sess 48,82 Ajello f. Worsley, [1898] 1 Ch. 274 25,31,136 Aleook ». Smith, [1892] 1 Ch. 238, C. A 12 Aldersonw. Maddison(1880), 5Ex. D. 293 175 Aldridge v. Johnson (1857), 26 L. J. Q. B. 296 5, 61, 66 Alewyn v. Pryor (1826), R. & M. 406 182 Alexander >. Gardner (1835), 1 Bing. N. C. 671 56, 84, 111, 183 Alexanders. Vanderzee (1872), L. R. 7 C. P. 530 182 Allen r. Cameron (1833), 1 Cr. & M. 832 121 AUen V. Hopkins (1844), 13 M. & W. 94 10 Allen V. Pink (1839), 4 M. & W. 140 35 AUen «. Stein (1790), M. 4949 96 American Commerce Co. v. Boehm, Ltd. (1919), 36 T. L. R. 224 88, 171, 186 Aneona v. Rogers (1876), 1 Ex. D. 285, C. A 79, 167 Anderson «;. Croall (1903), 6 F. 153, Ct. of Sess 38,130 Anderson t;. Morice (1875), 1 App. Cas. 713 62,64,85,186 Andrews «. BelMd (1857), 2 C. B. (if.s.) 779 187 Anglesey (Marquis of), iJe, [1901] 2 Ch. 548, C. A 113 Anglo-Egyptian Navigation Co. v. Rennie (1875), L. R. 10 C. P. 271 ... 6 Angus «. McLachlan (1883), 23 Ch. D. 330 100 Annie Johnson, The, [1918] P. 154 61 Anthony «. Halstead( 1877), 37 L. T. (n.s.) 433 188 Ant. Urgens Margarine fabrieken v. Louis Dreyfus & Co., [1914] 3 K B. 41 107 Appleby v. Myers (1867), L. R. 2 C. P. 661 • 28 Argeraina,The{1867),L.'R.lAdm,310 165 Armstrong i;. Jackson, [1917] 2 K. B. 822 3 Arnold w. Cheque Bank (1876), 1 C. P. D. 578 10 Ashforth v. Redford (1873), L. R. 9 C. P. 20 185 Ashmore v. Cox, [1899] 1 Q. B. 436 116, 189 Ashworth «. WeUs (1898), 78 L. T. (n.s.) 136, C. A 122 Asiatic Petroleum Co. v. Lennards Carrying Co., [1914] 1 K. B. 419 ; 18 Com. Gas 156 Atkinson «. Bell (1828), 8 B. & C. 277 57 Attenborough, Be (1855), 14 Exch. 461 7 Attenborough V. Solomon, [1914] A. C. 76 H. L 65,139 XX TABLE OF OASES. PAOB Attwood «. Emery (1856), 26 L. J. C. P. 73 184 Azemar V. Casella (1867), L. R. 2 C. P. 677, Ex. Ch 40,41,188 Badisohe Anilin Fabrik v. Basle Chemical Works, [1898] A. C. 200 H. L. 57, 84 Badisohe AniUn Pabrik i). Hickson, [1906] A. C. 419 51.53 Bagueley v. Hawley ( 1 867), L. R. 2 0. P. 625 26, 76 Bailey V. Sweeting (1861), 30 L. J. C. P. 150 23 Baily v. De Crespigny (1869), L. R. 4 Q. B. 180 37 Baines v. Swainson (1863), 32 L. J. Q. B. 281 152 Baird «. Wells (1890), 44 Ch.D. 661 H Baker t;. Eirminger (1859), 28 L. T. Ex. 130 78 Baker t>. Keen (1818), 2 Stark 601 15 Baldev w. Parker (1823), 2 B. & C. 37 22,99 Bank Line ?;. Capel & Co., [1919] A. C. 435 29 Bankart i;. Bowers (1860), L. R. 1 C. P. 484 77 Banner, ^a;2)orte (1876), 2 Ch.D. 278 61 Bannerman t;. White (1861), 31 L. J. C. P. 28 ... 34,36,36,121,180 Barber w. Meyerstein (1870), L. R. 4 H. L. 317 166 Barker «. Furlong, [1891] 2 Ch. 172 130 Barnard «. Faber, [1893] 1 Q. B. 340, C. A 179 Barnes «;. Toye (1884), 13 Q. B. D. 410 12 Barnett, fej)ar. Tayleur (1856), 17 C. B. 21 118 Forbes u Smith (1863), 11 W. R. 574 ; ... 112 Ford «. Yates (1841), 2 M. & Gr. 549 78 Foi^et V. Ostigny, [1895] A. C. 318, P. C 30 Forrest v. Avamayo (1900), 9 Asp. Mar. Cas. 134, C. A 76, 92 Forysth «;. Jervis (1816), 1 Stark. 437 5 Fowkes V. Manchester life Assurance Association (1862), 32 L. J. Q. B. 153 : 127 Fragano t). Long (1826), 4 B. & C. 219 56,62 France i;. Gaudet (1871), L. R. 6 Q. B. 199 119 Francis, £« parte (1887), 4 Morr. 146 102 Franklin V. Neate (1844), 13 M. & W. 481 139 Freemant;. Appleyard(1862), 32L. J. Ex. 175 137 Freeman v. Cooke (1848), 2 Ex. 654 ; 18 L. J. Ex. 114 64 Freeth i;. Burr (1874), L. R. 9 C. P. 208 84 French i;. Howie, [1906] 2 K. B. 674, C. A 15 Frost V. Aylesbury Dairy Co., [1905] 1 K. B. 608, C. A 42, 44 Fuentes v. Montis (1868), L. R. 4 C. P. 93 Ex. Ch 146, 153, 160 Furley v. Bates (1863), 33 L. J. Ex. 43 54, 66, 58 Gabarron V. Kreeft (1876), L. R. 10 Ex. 274 610 Gabriel (Thomas) & Sons v. Churchill, [1914] 3 K. B. 1272, C. A 32 Gapp V, Bond (1887), 19 Q. B. D. 200 167 Gardiner t;. Grey (1816), 4 Camp. 144 •... 49 Gardner v. Grout (1857), 2 C. B. (n.s.) 340 22 Gattomo i;. Adams (1862), 12 C. B. (N..S.) 560 182 Geake V. Ross (1876), 44 L. J. C. P. 315 113 C.S.G. ' C XXVI TABLE OF CAS^S. PASB General Trading Co., Be (1911), 16 Com. Cas. 96 33 Genn «;. Winkel (1912), 17 Com. Gas. 323, 0. A 57,91 George w. Sldvington (1869), L. R. 6 Ex. 1 47 George Whiteohurch, Ltd. v. Cavanagh, [1902] A. C 164 Gihhes, Ex parte {1815), I Ch. B. 101 101 Gibson?;. Carruthers (1841), 8 M. &W. 321 95,100,101 Gibson «. HoUand (1865), L. R. 1 C. P. 1 23 Gieve, i?e, [1899] 1 Q. B. 794, C. A 30 GiU V. MoDoweU, [1902] 2 Irish Rep. 463 18 Gillard t). Brittan (1841), 8 M. & W. 575 119 GiUespie Brothers v. Cheyney, [1896] 2 Q. B. 59 43, 44 GiUett i>. HiU (1834), 2 Cr. & M. 530 10,52 Gibnour v. Supple (1858), 11 Moore, P. C. 551 ; 6 W. R. 445 54 Glasgow S. W. R,ailway D. Forrest, [1916] A. 0. 526, H. L. 35 Glyn Mills & Co. «;. East & West India Docks (1882), 7 App. Cas. 691 ... 165 Godts V. Rose (1856), 17 C. B. 229 ; 26 L. J. C. P. 61 : 22, 66, 60, 79, 136, 183 Godwin v. Francis (1870), L. R. 5 C. P. 295 23 Golding Davis & Co., Ex parte (1880), 13 Ch. D. 628, C. A 86, 107, 108 Goldshedev. CottreU(1836), 2M. & W. 20 93 Gompertz D. Denton (1832), 1 Cr. & M. 207 121 Goodbody, iJe (1900), 5 Com. Cas. 69, C. A 183 Goodlock t). Cousins, [1897] 1 Q. B. 558, C. A. 65 Gordon u Swan (1810), 2 Camp. 429 113 Gordon u Whitehouse (1856), 18 C. B. 747 113 Gore V. Gibson (1846), 13 M. & W. 623 ; 13 L. J. Ex. 151 14 Gorrissen v. Perrin (1857), 27 L. J. C. P. 29 183, 186 Gobs «. Nugent (Lord) (1833), 6 B. & Ad. 68 24 Grafi «. Evans (1882), 8 Q. B. D. 373 11 Graham w.Musson (1839), 5 Bing. N. C. 603 21 Grantham v. Hawley (1603), Hobart Rep. 132 ; 2 Roll. 48, pi. 20 27 Graves v. Legg (1854), 9 Exch. 709 ; 23 L. J. Ex. 228 36, 114, 182 Graves ?;. Weld (1833), B. & Ad. 106 137 Great Northern Railway Co. v. Swiffield (1874), L. R. 9 Ex. 152 65 Greaves j;. Ashhn (1813), 3 Camp. 425 92,109 Greaves V. Hepke (1818), 2 B. & Aid. 131 56 Grebert-Borgnis v. Nugent (1886), 15 Q. B. D. 85, C. A. ... 116, 118, 124 Green v. All Motors, Ltd., [1917] 1 K. B. 625, C. A. 158 Green v. Baverstoek (1863), 32 L. J. C. P. 181 ... 129 185 Gregg «. Wells (1839), 10 A. & E. 90 ' 64 Grice «. Richardson (1877), 3 App. Cas. 319, P. C. ... 97 Griffiths V. Perry (1859), 28 L. J. Q. B. 204 93, 96, 97, 99, 100, 101 Grigg V. National Guardian Assurance Co., [1891] 3 Ch. 206 167 Grimoldby v. Wells (1875), L. R. 10 C. P. 391 " '"50 91 Grissell v. Bristowe (1868), L. R. 4 C. P. 36 Ex. Ch !. ... ' 7 Groom i;. Barber, [1916] 1 K. B. 316 61,62,87,88,185 Guarantee Trust Co. of New York v. Hannay & Co., [1918] 2 K. B. 623, C. A. 165 Gunn V. Bolokow, Vaughan & Co. (1878), L. R. 10 Ch. App. 491 : 93,'94, 97, 149 Gumey v. Behrend (1854), 3 E. & B. 622 165 Gwillim V. Daniell (1835), 2 C. M. & R. 61 [" 186 Hadley v. Baxendale (1854), 9 Exoh. 341 ; 2 Smith, L. C. ; 11th Ed. 639 116 Haegerstrand v. Annie Thomas Steamship Co. (1906), 10 Com. Cas. 67 ... 189 Hale D. Rawson (1868), 27 L. J. C. P. 189 ... ... 26,29,37,182,183 TABLE OF OASES. xxvn Hall, Be, Close, Ex parte (1885), 54 L. J. Q. B. 43 Hallas V. Robinson (1886), 15 Q. B. D. 288, C. A HaUiday v. Holgate (1868), L. R. 3 Ea. 299, Ex. Ch HamUton v. MajHI (1883), 12 Ir. L. R. 186 Hamilton w. Vaughan, [1894] 3 Ch. 689 Hammond v. Bussey (1887), 20 Q. B. D. 79, C. A Hanks v. Palling (1856), 6 E. & B. 669 ; 25 L. J. Q. B. 375 ... Hanson w. Armitage (1822), 5 B. & Aid. 657 Hanson «. Meyer (1805), 6 East, 614 Happev. Manas8eh(1915), 32T. L. R. 112, C. A Hardman v. Booth (1863), 32 L. J. Ex. 106 ; 1 H. & C. 803 Hargreave v. Spink, [1892] 1 Q. B. 26 - ... Harland «;. BurstaU (1901), 6 Com. Gas. 113 Harman v. Reeve ( 1856), 26 L. J. C. P. 267 Hamor v. Groves (1865), 15 C. B. 667 ; 24 L. J. C. P. 53 Harris v. Nickerson ( 1 873), L. R. 8 Q. B. 286 , Harrison i;. Knowles & Foster, [1918] 1 K. B. 608, 0. A Harrison v. Luke (1845), 14 M. & W. 139 Harrison & Mioks, .Be, [1917] 1 K. B. 765 Hart i;. Mills (1846), 15 M. & W. 86 Harvey & Co., Ex parte (1890), 7 Morr. 138 Haatingb w. Pearson, [1893] 1 Q. B. 62 Hatfield v. Phillips (1842), 9 M. & W. 647 ; (1845), 14 M. & W. 665 Hathering v. Laing (1873), L. R. 17 Eq. 92 Hawes «;. Wilson (1824), 2 B. & C. 543 Hayman v. Flewker (1863), 32 L. J. C. P. 132 Hayman v. M'Lintoek (1907), 9 F. a. of Sesb. Haynes v. Haynes (1861), 1 Dr. & Sm. 426 ... Head v. Tattersall (1871), L. R. 7 Ex. 7 Healey v. Howlett & Sons, [1917] 1 K. B. 337 Heilbutt V. Hickson (1872), L. R. 7 C. P. 438 ... Helby V. Matthews, [1895] A. C. 471, H. L Hellings v. RusseU (1876), 33 L. T. (n.s.) 380 Henderaon i;. Williams, [1895] 1 Q. B. 621 Heron «. Grainger (1803), 6 Esp. 269 Heseltine v. Siggers ( 1 848), 1 Exch. 866 Hewlings v. Graham (1901 ), 70 L. J. Ch. 568 Heyward's Case (1595), 2 Coke 35 a ; Poph. 95 ; 2 And. 202 Heyworth v. Hutohiiison (1867), L. R. 2 Q. B. 447 ... 48, 49, 141 Hibblewhite v. M'Morine (1839), 5 M. & W. 462 Hickman v. Haynes (1875), L. R. 10 C. P. 598 Higgons V. Burton (1867), 26 L. J. Ex. 342 Hilbery v. Hatton (1864), 33 L. J. Ex. 190 HiU D. Perrott (1810), 3 Taunt. 374 Hill V. Smith (1812), 4 Taunt. 520, Ex. Ch Hill & Sons V. Showell & Sons (1918), 87 L. J. Q. B. 1106, H. L. ... HinchcUffe v. Barwick (1880), 6 Ex. D. 177, C. A Hinde v. Liddell (1876), L. R. Q. B. 266 Hinde «. Whitehouse (1866), 7 East, 558 Hiort V. London & North-We&tem Railway (1879), i Ex. D. 188, C. A. Hitchcock i;. Giddings (1817), Daniell, 1 Hoadly «;. MT.aine (1834), 10 Bing. 482 PAQE ... 149 ... 27 8, 139 ... 125 ... 14 116, 121, 126 ... 26 22,86 ... 55 ... 88 69, 157 ... 68 81, 187 ... 6,21 35, 49, 90 ... 130 35,36 5 186, 187 ... 81 4 148, 151 ... 153 ... 149 99 148 62, 79, 108, 139 174, 175 7, 59, 62, 91, 188 67 2, 34, 36, 48, 60, 61, 56, 67, 89, 90, 91, 121, 179 1, 64, 133, 168 148 10 169 25 16 ... 59 181, 188 . ... 26 26, 114, 118 ... 69 ... 119 ... 10 ... 49 ... 117 ... 188 116, 117 ... 22 119 26 23 61, XXVIU TABLE OF GASES. J. Ch. 193 Hoare «. Rennie (1859), 29 L. J. Ex. 73 Hodgens v. Hodgens (1837), 4 01. & F. 323, H. L Hodgson V. Loy (1797), 7 T. R. 440 Holden v. Bostock (1902), 60 W. R. 323, C. A. Holdsworth v. Glasgow Bank (1880), 6 App. Cas. 317 Hollins V. Fowler (1875), L. R. 7 H. L. 757 Holroyd v. MarshaU (1862), 10 H. of L. Cas. 191 ; 33 L. Holyday v. Morgan (1858), 28 L. J. Q. B. 9 Honok V. Muller (1881), 7 Q. B. D. 92, C. A Hooper v. Gumm (1867), 2 Ch. App. 282 Hope V. Hayley (1856), 25 L. J. Q. B. 165 Hopkins v. Hitchcock (1863), 32 L. J. C. P. 164 Hopkins V. Tanqueray (1854), 15 C. B. 130 ; 23 L. J. C. P. 162 HorsfaU v. Thomas (1862), 31 L. J. Ex. 322 Horwood V. Smith (1788), 2 T. R. 760 Houlditch V. Desanges (1818), 2 Stark. 337 Howard v. Castle (1796), 6 T. R. 642 ... Howe V. Smith (1884), 27 Ch. D. 87, C. A. Howell V. Coupland (1876), 1 Q. B. D. 258, C. Howell V. Richards (1809), 11 East, 633 Howes «. BaU (1827), 7 B. & G. 481 ... Hubbard, Ex parte (1886), 17 Q. B. D. 690 ; 55 L. J. Q. B. 490 Hughes, Ex -parte { 1 892), 4 Morr. 294 Hugill V. Masker (1889), 22 Q. B. D. 364, C. A. Hull V. Adams (1896), 65 L. J. Q. B. 114 Humble v. MitcheU (1839), 11 A. & E. 205 .. Hunt V. Hecht (1853), 8 Exch. 814 Hussey v. Home Payne (1879), 4 App. Cas. 311 Hutchinson v. Bowker (1839), 5 M. & W. 535 Hutton V. Warren ( 1 836), 1 M. & W. 466 Hutton V. Lippert (1883), 8 App. Cas. 309, P. C. Hydraulic Co. v. MoHaffie (1878), 4 Q. B. D. 670, C. A, Hyslop V. Sbirland (1905), 7 F. 875, Ct. of Sess. 84 15 93 122 123 64, 65, 66, 119 26 188 76, 83, ,84, 126, 181 .. 138 .. 26 .. 41 34, 35 .. 42 68,70 .. 99 .. 129 23,31 28,29 .. 38 8,139 .. 7,8 .. 102 21, 157 .. 158 .. 137 118, 195 Imperial Bank v. London & St. Katherine Dock Co. (1877), 5 Ch. D Imperial Loan Co. f. Stone, [1892] 1 Q. B. 699, C. A. Inglis V. Robertson, [1898] A. C. 616 ; 67 L. J. P. C. 108 ... 143, 147, Inglis V. Stack (1885), 10 App. Cas. 263 ; 64 L. J. Q. B. 582 International Sponge Co. v. Andrew Watts & Sons, [1911] A. C. 279 Ireland v. Livingston (1872), L. R. 5 H. L. 396; 41 L. J. Q. B. 20L 87, 93, Isherwood v. Whitmore (1843), 11 M. & W. 347 ; 12 L. J. Ex. 318 Jackson «. AUaway (1844), 6 M. & Gr. 942 ; 13 L. J. C. P. 84 78 Jackson v. Rotax Motor Cycle Co., [1910] 2 K. B. 937, C. A. : 36, 45, 48, 82, 84, 184 Jackson w. Scott (1899), 2 F. 70, H. L. 42 Jackson v. Union Marine Insurance Co. (1874), L. R. 10 C. P. 125 ... 29 Jackson v. Watson & Sons, [1909] 2 K. B. 193, C. A. 44, 122 Jager «;. Tolme, [1916] 1 K. B. 9^9, C. A 11,88 James «;. Griffin (1837), 2 M. &W. 623 103,104 Jay «;. Robinson (1890), 26 Q. B. D. 467 16 .Jenkynsi). Brown(1849), 14Q. B. 496; 19L. J. Q. B. 286 139 Jenkyns v. Usborne (1844), 7 M. & Gr. 678 94,157 20 187 128 4 124, 184 188 94 14 153, 166 52,86 112 185, 186, TABLE OF OASES, XXIX PAOK Jenner v. Smith ( 1869), L. R. 4 C. P. 270 51 , 56 Jevan «. Whitworth (1866), L. R. 2 Eq. 692 164 John Griffiths Cycle Co. V. Humber & Co., [1899] 2 Q. B. 414, 0. A. ... 24 Johnson v. Credit Lyonnais (1877), 3 C. P. D. 32 ; 47 L. J. Q. B. 241 ... 110, 155, 1S6, 160 Johnson v. Dodgson (1837), 2 M. & W. 653 ; 6 L. J. Ex. 185 23 Johnson u. Lancashire Railway (1878), 3 C. P. D 119 Johnson v. Maodonald (1842), 9 M. & W. 600 9, 189 Johnson v. Raylton (1881), 7 Q. B. D. 438; 50 L. J. Q. B. 753, C. A. : 11, 45, 187 Johnson V. Stear (1863), 33 L. J. C. P. 130 119 Johnstone ti. Marks (1889), 19 Q. B. D. 509, C. A 12 Jonassohn v. Young (1863), 32 L. J. Q. B. 385 84 Jones, iZe (1889), 5 Morr. 193 58 Jones u. Bowden (1813), 4 Taunt. 847 43 Jones «;. Bright (1829), 5 Bing. 533 42,46,179 Jones V. Gibbons (1853), 8 Exch. 920 80,115,184 Jones V. Gordon (1877), 2 App. Cas. 616 ; 47 L. J. (Bey) 1 141, 142 Jones «. Just (1868), L. R. 3 Q. B. 197 42,43,121 Jones w Padgett (1890), 24 Q. B. D. 650 43 Jones t). TankerviUe, [1909] 2 Ch. 440 120,138 Jones V. Victoria Dock Co. (1877), 2 Q. B. D. 314 23 Jordeson & Co. V. London Hardwood Co. (1813), 19 Com. Cas. 161 ... 60 Joseph V. Lyons (1884), 15 Q. B. D. 280, C. A 27 Josling «. Irvine (1861), 6 H. & N. 512 ; 30 L. J. Ex. 78 116 Josling V. Kingsford (1863), 13 C. B. (n.s.) 447 ; 32 L. J. C. P. 64 40 Joyce V. Swann (1864), 17 C. B. (N.s.) 84 54,56 Kaltenbach v. Lewis (1885), 10 App. Cas. 617 154, 160 Kaltenbach V. Mackenzie (1878), 3 C. P. D. 467, C. A 65 Karburg (Amhold) v. Green Blythe & Co., [1916] 1 K. B. 495 ; 25 Com. Cas. 174, C. A 30, 87 Keighley u Durant, [1901] A. C. 240 131 Keith V. Burrows (1876), 1 C. P. D. 722 ; 45 L. J. Q. B. 876 7 Kemp V. Baerselman, [1906] 2 K. B. 604, C. A 11 Kemp V. Falk (1882), 7 App. Cas. 573 ; 52 L. J. Ch. 167 : 95, 98, 102, 104, 106, 106, 107, 108, 109, 149 Kemp «;. Ismay (1909), 14 Com. Cas. 202 102 Kendal v. Marshall, Stevens & Co. (1883), 11 Q. B. D. 356, C. A. : 95, 101, 103 Kennedy v. Panama Co. (1867), L. R. 2 Q. B. 680 18, 35, 41, 46, 141 Khan D. Duch^ (1906), 10 Com. Cas. 87 89,184 KiddeU V. Bumard (1842), 9 M. & W. 668 188 Kidston u Monceau Iron Works Co. (1902), 7 Com. Cas 82 Kilpin V. Ratley, [1892] 1 Q. B. 582 5 King «. England (1864), 33 L. J. Q. B. 145 3 Kingdom V. Cox (L848), 5 C. B. 522 82 Kingsbury u CoUins (1827), 4 Bing. 202 137 Kingsford v. Merry (1856), 1 H. & N. 503 ; 26 L. J. Ex. 83 ... 69, 159 Kirkham v. Attenborough, [1897] 1 Q. B. 201 ; 66 L. J. Q. B. 149, C. A. : 56, 188 Kitaon t). Hardwick (1872), L. R. 7 C. P. 473 ; 26 L. T. 846 3 Kleinert i;. Abosso Mining Co. (1913), 58 S. J. 48, P. C 37 Knights V. Wiffen (1870), L. R. 5 Q. B. 660 64, 100, 107 Kreuger v. Blanck (1870), L. R. 5 Ex. 179 ; 39 L. J. Ex. 160 186 Kronprincessin Cecilie, The (imi), 33 T. L. U. 292, V. a , 4,31 XXX TABLE OF GASES. PAQli Kruger v. Wilcox (1755), Indor's Merc. Cas. 3rd Ed. 370 ; Ambl. 252 ... 90 Kuhliz V. Lambert Bros., Ltd. (1913), 18 Com. Cas. 217 3, 67 Kymer i;. Suwercropp (1807), 1 Camp. 109 HI Ladenburg & Co. j;. Goodwin, [1912] 3 K. B. 275 7 Laidler v. Burlin&on (1837), 2 M. & W. 602 55, 58 Laingh (Sir J.) u Barclay & Co., [1908] A. C. 35, H. L 53 Laird i;. Pirn (1841), 7 M. & W. 478 114 Lamb v. Attenborough (1862), 31 L. J. Q. B. 41 148 Lambton Ex parte (1875), L. R. 10 Ch. App. 405 58, 93, 97 Lamond r. Davall (1847), 9 Q. B. 1030 ; 16 L. J. Q. B. 136 : 7, 91, 110, 114 Lancashire Wagon Co. r. Pitzhugh (1861), 30 L. J. Ex. 231 119 Landauer v. Asser, [1905] 3 K. B. 184 ; 74 L. J. K. B. 659 88, 186 Landauer v. Craven, [1912] 2 K. B. 94 ; 81 L. .T. K. B. 650 ; 17 Com. Cas. 193 33,87 La Neuville t). Nourse (1813), 3 Camp. 350 6 Lang v. Smith (1831), 7 Bing. 284 137 Langton v. Higgins (1859), 4 H. & K. 402; 28 L. J. Es. 252 : 25, 26, 56, 110, 119 Lascelles v. Rathbun (1919), 35 T. L. R. 347, C. A 17 Last i;. HucMesby, [1914] W. N. 157, C. A 23 Lavery i;. PurseE (1888), 39 Ch. D. 508 ; 57 L. J. Ch. 570 138 Law & Bonar u. American Tobacco Co., [1916] 2 K. B. 605 88 Lawford v. Billericay District Council, [1903] 1 K. B. 772, C. A 18 Lea Bridge Gas Co. i;. Malvern, [1917] 1 K. B. 803 15 Leask v. Scott (1877), 2 Q. B. D. 376, C. A '. 108 Leather Cloth Co. v. Hieronimus ( 1 875), L. R. 10 Q. B. 140 25 Lee «. Bayes (1856), 18 C. B. 599 ; 25 L. J. C. P. 249 64,68 Lee t). Butler, [1893] 2 Q. B. 318 ; 62 L. J. Q. B. 691 158 Lee t). Gaskell (1876), 1 Q. B. D. 700 137 Lee V. Griffin (1861), 1 B. & S. 272 ; 30 L. J. Q. B. 252 4, 5 Learning t). Snaith (1851), 16 Q. B. 275 ; 20 L. J. Q. B. 164 186 Lees, Re, Collins, Ex parte ( 1 875), L. R. 10 Ch. App. 367 176 Leigh «. Paterson (1818), 8 Taunt. 540 116 Leir u Leir (1833), 6 C. & P. 239 130 Leith's Estate, Re (1866), L. R. 1 P. C. 296 ; 36 L. J. P. C. 17 ... 100, 127 Leroux i;. Brown (1852), 12 C. B. 801 ; 22 L. J. C. P. 1 20 Leslie j;. Shiel, [1914] 2 K. B. 607, C. A 13 Levy V. Green (1869), 28 L. J. Q. B. 319, Ex. Ch 82 Levy ti. Langridge (1838), 4 M. & W. 337, Ex. Oh 35 Lewis u. Clifton (1864), 14 C. B. 246 115 Lickbarrow v. Mason (1793), 6 East, 21 n. ; 2 Term Rep. 63 ; 1 Smith L. C. 11th Ei. 693 100,108 Litt j;. Cowley (1816), 7 Taunt. 169 105,106 Lookett V. Nicklin (1848), 2 Exch. 93 ; 19 L. J. Ex. 403 17,78 Lodert). Kekul6(1857), 27L. J. C. P. 27 121 London &. N. W. Railway t>. Bartlett (1861), 31 L. J. Ex. 92 103 London & Yorkshire Bank v. White (1895), 17 T. L. R. 670 7 L. C. & D. Railway j;. S. E. Railway, [1893] A. C. 429 113 Lord «. Price (1877), L. R. 9 Ex. 64 109; 110 Lorymer v. Smith (1822), 1 B. & C. 1 ; 2 Dow. & Ry. K. B. 23 ... 48, 49 Lucas j;. Bristow (1868), 27 L. J. Q. B. 364 187 Lucas V. Dixon (1889), 22 Q. B. D. 367, C. A. 23 Lucy w. Mouflet (1860), 29 L. J. Ex. 110 91 TABLE OF OASES. XXXI Lunn V. Thornton (1845), 1 C. B. 379 ; 14 L. J. C. P. 161 Lyons v. HofEnung (1890), 15 App. Gas. 391, P. 0. ... Lysney v. Selby (1705), 2 Ld. Raym. 1118 Maas t;. Pepper, [1905] A. C. 102, H. L. 4 McBain v. Wallace (1881), 6 App. Gas. 588 ; 45 L. T. 261 9, 54, 132 McColIin V. GUpin (1881), 6 Q. B. D. 516, C. A 187 McGomiell v. Murphy (1873), L. R. 5 P. C. 203 82, 186 Maodonald «. Longbottom (1860), 29 L. J. Q. B. 256, Ex. Gh 187 McDowell V. Snowball ( 1904), 7 F. 35, a. of Sess 1 85 McBntire v. Crossley Brothers, [1895] A. C. 467 ; 64 L. J. G. P. 129 : 2, 9, 52 McEwan V. Smith (1849), 2 H. of Jj. Gas. ; 13 Jut. 265 ... 80,100,107,157 Macfarlane r. Taylor (1868), L. R. 1 Sc. App. 245 ; 18L. T. 214 48 Maokay v. Dick (1881), 6 App. Gas. 251 ; 29 W. R. 541 .37 McGruther v. Pitcher, [1904] 2 Gh. 306 ; 73 L. J. Ch. 653 32 Mackintosh V. Mitchinson (1849), 4 Exch. 175 15 MacLaren, ife(1879), llCh. D. 68; 48L. J. (Bey)49, G. A 3 McLay v. Perry (1881), 44 L. T. 152 - 187 Maclean v. Dunn (1828), 4 Bing. 722 ; 6 L. J. (o.s.) G. P. 184 ... 109, 115 McManus v. Fortesoue, [1907] 2 K. B. 1 ; 76 L. J. K B. 393, C. A. : 24, 130 Macnee u Gorst (1807), L. R. 4 Eq. 315 154 Maddison v. Alderson (1883), 8 App. Gas. 467 ; 52 L. J. Q. B. 737... 21. 35 MadeU w. Thomas, [1891] 1 Q. B. 230 ; 60 L. J. Q. B. 227 4 Maine Spinning Co. v. SutcHffe & Go. (1917), 23 Gom. Gas. 216 ; 34 T. L. R. 154 37,86 Mainprice V. Westley (1865), 34 L. J. Q. B. 229 ... 129 Malcolm V. Gross (1898), 35 Sc. L. R. 794 34 Manbre Saccharine Go. v. Gom Products Go., [1919] 1 K. B. 198 ... 28, 40, 87 Manchester Ship Canal Go. «;. Horlock, [1914] 1 Gh. 453 17,138 Manchester, etc., Ry. v. North Central Wagon Co. (1888), 13 App. Gas. 554, H. L. Manders v. WiUiams (1849), 4 Exch. 339 ; 18 L. J. Ex. 437 Market Overt, The Case of (1596), 5 Coke R. 83 b Marshall v. Green (1875), 1 C. P. D. 35 ; 45 L. J. Q. B. 153 .. Marson v. Short (1835), 2 Bing. N. C. 118 Martin v. Reed (1863), 31 L. J. G. P. 126 Martin v. Whale, [1917] 2 K. B. 480, C. A Martindale v. Smith (1841), 1 Q. B. 389 ; 10 L. J. Q. B. 156 : 33, 64, 93, 96, 109 Martineau v. Kitching (1872), L. R. 7 Q. B. 436 31, 62, 63 Mihivm, Ex parle (1915), 84:L. J. K.B. 1893 16 Marvin v. Wallace (1856), 25 L. J. Q. B. 369 22, 134 Mass «;. Pepper, [1905] A. 0. 102, H. L 132 Matsonkis i;. Priestman, [1916] 1 K. B. 681 29 Maughan «;. Sharp (1864), 34 L. J. C. P. 19 7 Meehan V. McLachlan (1910), S. C. 758. Ct. of Sess 90 Megan v. MoUoy (1878), 2 L. R. Ir. 530, C. A 18 Mehta v. Sutton (1913), 30 T. L. R. 17, G. A 71, 150 Melrose D. Hastie (1851), 13 Sess. Gas. 880 95 Merchant Banking Co. v. Phoenix Bessemer Steel Co. (1877), 5 Ch. D. 206 ; 46L.J. Gh. 418 '•• 95,98,107 Meredith v. Meigh (1863), 2 E. & B. 364 ; 22 L. J. Q. B. 40 ... 22, 85 Mersey Steel & Iron Co. v. Naylor (1884), 9 App. Cas. 434 ; 53 L. J. Q. B. 497 33,83,84,92 PACK 25 101, 102 ... 179 7 ... 65 ... 67 137, 138 1,169 ... 65 12, 73, 133, 158 22, XXXll TABLE OF GASES. pAas 98 29 24 49 155 103, 104 96,98 79, 109, 119, 139 29 ... 83 186 128 47 L. J. Q. B. 51, 56, 60, 61 61,88 12, 165 60 . 40,43,48,49,127 128 65 Mess v. Duffus (1901), 6 Com. Gas. 165 Metropolitan Water Board v. Dick Kerr & Co., [1918] A. C. 119, H. L. Mews w. Carr (1856), 26 L. J. Ex. 39 Meyer t). Everth (1814), 4 Camp. 22 Mildred v. Masfons (1883), 8 App. Cas. 874 ; 53 L. J. Q. B. 33 Miles, £a; parte (1885), 15 Q. B. D. 39, C. A Miles V. Gorton (1834), 2 Cr. & M. 504 ; 3 L. J. Ex. 155 ... Milgate u Kebble (1841), 3 M. & Gr. 100 MiUar & Co. v. Taylor & Co., [1916] 1 K. B. 402, C. A. Millars Karri & Co. v. WeddeU & Co. (1908), 14 Com. Cas. 25 Miller v. Bomer, [1900] 1 Q. B. 691 Miller, Gibb & Co. v. Smith & Tyrer, [1917] 2 K. B. 141, C. A, Mirabita v. Imperial Ottoman Bank (1878), 3 Ex. D. 164 ; 418 C. A. Miramichi, The, [1915] P. 71 ; 84 L. J. P. 105 Missouri Steamship Co., Be (1889), 42 Ch. D. 321, C. A. Moakes v. Nicholson (1865), 3i L. J. C. P. 273 Mody V. Gregson (1868), L. R..4 Ex. 49 ; 38 L. J. Ex. 12 MoUett V. Robinson (1872), L. B. 7 C. P. 84 ; 41 L. J. C. P. Mondel v. Steel (1841), 8 M. & W. 858 ; 10 L. J. Ex. 426 Monk V. Whittenbury (1831), 2 B. & Aid. 484 Montf orts v. Marsden ( 1 896), 12 R. P. C. 266 Moorcoclc, The (1889), 14 P. D. 64 ; 58 L. J. P. 73, C. A ' Moran v. Pitt (1873), 42 L. J. Q. B. 47 Mordaimt Brothers v. British Oil and Cake Mills, [1910] 2 K. B. 502 Morel Brothers v. Westmoreland, [1904] A. C. 11, H. L Morgan v. Bain (1874), L. R. 10 C. P. 15 Morgan v. Gath (1865), 3 H. & C. 748 ; 34 L. J. Ex. 165 Morgan v. Russell & Sons, [1909] 1 K. B. 357 Morley v. Attenborough (1849), 3 Exoh. 500 ; 18 L. J. Ex. 148 Moodv V. PaU Mall Deposit Co. (1917), 33 T. L. R. 306 Moore v. Campbell (1854), 10 Exch. 323 ; 23 L. J. Ex. 310 Moore t;. Evans, [1918] A. C. 185, H. L. ... ' Moore v. Singer Manufacturing Co., [1904] A. C. 11, H. L Morris v. Baron & Co., [1918] A. C. 1, H. L Morris v. Levison (1876), I C. P. D. 155 Morrison v. Univ. Mar. Ins. Co. (1873), L. R. 8 Ex. 197, Ex. Ch. ... Morrit, Be (1886), 18 Q. B. D. 222 ; 56 L. J. Q. B. 139, C. A- Mortimer v. BeU (1865), L. R. 1 Ch. App. 10 ; 35 L. J. Ch. 25 Mortimore v. Wright (1846), 6 M. & W. 482 Morton w. Lamb (1797), 7 T. R. 125 Moss V. Hancock, [1899] 2 Q. B. Ill ; 68 L. J. Q. B. 657 Moss V. Sweet (1851), 16 Q. B. 493 ; 60 L. J. Q. B. 167 Moyce v. Newington (1878), 4 Q. B. D. 32 ; 48 L. J. Q. B. 125 Muirhead v. Dickson (1905), 7 E. 686, a. of Sess Mulliner v. Florence (1878), 3 Q. B. D. 484 ; 47 L. J. Q. B. 700, C. A. Murdoch v. Greig (1889), 16 R. 396, Ct. of Sess Murgatroyd w. Wright, [1907] 2 K. B. 333 Murray u Mann (1848), 2 Exch. 538 Nash V. Inman, [1908] 2 K. B. 1, C. A. National Phonograph Co. of Australia v. Menck, [1911] A. C. 336, P. C. Navulshaw v. Brownrigg (1852), 21 L. J. Ch. 908 121, 122 ... 151 ... 38 80, 181 ... 68 ... 107 ... 15 24,98 31, 149 4,136 39,45 ... 152 82, 186 ... 55 ... 15 18, 24, 38 ... 186 ... 175 8 ... 129 ... 15 ... 77 137 55 71 4 .. 139 6 .. 75 ,. 121 13, 16 .. 32 .. 152 VI, 68, TABLE OF CASES. XXXIU PAGE Naylor Benzon & Co. v. Kreinische Industrie Gesellschaft, [1918] 2 K. B. 486, C. A. 30 Neill i;. Whitworth (1886), L. R. 1 C. P. 684, Ex. Ch 183,185 Nelson I'. William Chalmers & Co. (1913), Ct. of Sest. Cas. 441 37 Nevill, Re, White, Ex parte (1870), L. R. 6 Ch. App. 397 4 New V. Swain (1828), 1 Dan. & Lloyd, 193 96 NeweU v. Radford (1887), L. R. 3 C. P. 52 23, 24 Newman «7. Jones (1886), 17 Q. B. D. 132 11 New Zealand Shipping Co. v. Societe des Ateliers de France, [1919] A. C. 1, H.L. 7,29 Nichol «;. Godts (1854), 10 Exch. 191 40 Nicholson v. Bradfield Union (1866), L. R. 1 Q. B. 620; 35 L. J. Q. B. 176: 18, 82 Nicholson w. Harper, [1895] 2 Ch. 45 74 NickoU V. Ashton, [1900] 2 Q. B. 298 ; 69 L. J. Q. B. 640 ... 29, 80, 118, 124, 182 189 Noble I. Ward (1867), L. R. 2 Ex. 135, Ex. Ch 25 Norman v. Phillips (1845), 14 M. & W. 277 ; 14 L. J. Ex. 306 ... 22, 87 North Central Wagon Co. v. Manchester Railway (1887), 36 Ch. D. . 7, 187 North- Western Rubber Co., JJe, [1908] 2 K. B. 907, C. A. 42,188 North- West Salt Co., iJe, [1913] 3 K. B. 422, C. A 132 Northern Steel & Hardware Co. v. Bath & Co. (1917), 33 T. L. R. 516, C. A. 86 Norton ?;. Davison, [1899] 1 Q. B. 401, C. A. 19 Nyberg v. Handelaar, [1902] 2 Q. B. 202 ; 61 L. J. Q. B. 309, C. A. : 67, 139 O'Dea V. Crawford (1899), 68 L. J. Q. B. 655 140 0. Gray (1849), 7 C. B. 961 115 Jlandall v. Newson (1877), 2 Q. B. D. 102, C. A 40, 42, 47, 49, 121 RandaU v. Roper (1858), 27 L. J. Q. B. 266 121 Ranking Potter (1873), L.R. OH. L. 83: 42 L. J. ('. P. 16!) 5!) Raphael?'. Bank of England (IS.'JS), 17 C. B. 161 152 Ratoliffe «. Evans, [1892] 2 Q. B. 524, C. A 124 Rawson v. Johnson (1801), 1 East, 201 77 Ray i;. Barker (1879), 4 Ex. D. 279, C. A 55 Reddall u Union Castle Steamship Co. (1914), 20 Com. Cas. 86 105 Reed v. Mestaer (1802), 2 Comyn on Contract, 229 ; BuUen & Leake's Prec. of Pleading, 6th Ed., p. 759 113 Reeves v. Barlow (1884), 12 Q. B. D. 436, C. A 2 Reeves V. Capper (1828), 5 Bing. N. C. 136 7 Reeves «. Whitmore (1864), 33 L. J. Ch. 63 26 Reid t;. Hutchinson (1813), 3 Camp. 351 5 Reid V. Macbeth, [1904] A. C. 223, H. L 52, 53 Rein r. Lane (1867), L. R. 2 Q. B. 144 ; 36 L. J. Q. B. 81 169 Rennie V. Mess, [1902] W. N. 122, H. L 19 Reuss V. Pioksley (1866), L. R. 1 Ex. 342, Ex. Ch 20, 21, 23 Reuter v. Sala (1879), 4 C. P. D. 239 ; 48 L. J. Q. B. 492, C. A. ... 33, 34, 82, 84, 182, 186 Rhodes, iJe (1820), 44 Ch. D. 94, C. A 13,14 Rice V. Reed, [1900] 1 Q. B. 54, C. A 10 Richards t). Delbridge (1874), L. R. 18 Eq. 11 5 Richardson i;. Dubois (1869), L. R. 5 Q. B. 51 - " ... 15 Riggew.'Burbidge(1846), 15M. & W. 698 122 BiponCity, The, [1897] P. 226 7,15 Roberts, iJe (1887), 36 Ch. D. 196 167 Roberts D.Gray, [1913] 1 K. B. 520, C. A 14 Robertson, iff, Crawcour,.Ba; ^orie (1878), 9 Ch. D. 419, C. A 2 Robinson «. Lynes, [1894] 2 Q. B. 577 15 Robinson u. MoUet (1876), L. R. 7 H. L. 802 127 Rodger «;. Comptoir d'Escompte (1869), L. R. 2 P. C. 393 108 Rodocanachi v. Milburn (1886), 18 Q. B. D. 67; 66 L. J. Q. B. 202, C. A. ... 119 Rodriguez v. Speyer Brothers, [1919] A. C. 69, H. L 16 Roe V. Naylor, Ltd. (1918), 87 L. J. K. B. 968, C. A 18, 20, 143 Roe V. Tranmar (1757), 2 Smith, L. C. 11th Ed., p. 518 ; 2 Wils. 75 ... 127^ Rohde V. Thwaites (1827), 6 B. & C. 388 ; 6 L. J. (o.s.) K. B. 163 ... 2, 51, 56 Roots V. Lord Dormer (1832), 4 B. & Ad. 77 129 Roper V. Johnson (1873), L. R. 8 C. P. 167 ; 42 L. J. C. P. 65 114, 116, 117 Roscorla v. Thomas (1842), 3 Q. B. 234 ; 11 L. J. Q. B. 214 34 Rosevear China Clay Co., Ex parte (1879), 11 Ch. D. 660 102, 103 Ross Brothers v. Shaw & Co. (1917), 2 Ir. Rep. 367 184 Roth V. Tayaon (1896), 1 Com. Cas. 306, 0. A 115, 118, 124 XXX VI TABLE OF OASES. Rourke v. Short (1856), 25 L. J. Q. B. 196 Rugg u Minett (1809), 11 East, 210 .- Ryan D. Ridley (1902), 8 Com. Cas. 105 Ryan v. Sams (1848), 17 L. J. Q. B. 271 Ryder v. Womfewell (1868), L. R. 4 Ex. 32 Ex. Ch Sailing Ship Blairmore v. Macredie, [1898] A. C. 693, H. L. ... Saks t>. TiUey (1915), 32 T. L. R. 148, C. A Salter v. Woolams (1841), 2 M. & Gr. 650 ; 10 L. J. 0. P. 145 Sanders J>. Jameson (1848), 2 C. & K. 567 Sanders v. Maclean (1883), 11 Q. B. D. 327 ; 62 L. J. Q. B. 481 135, 146, 164, 165, 184 Saunders v. Topp (1849), 4 Exch. 390 ; 18 L. J. Ex. 374 90 Scattergood v. Sylvester (1850), 15 Q. B. 606 ; 19 L. J. Q. B. 447 70 Schawel i;. Reade, [1913] 2 Ir. Rep. 64, H. L 36,188 Schotsmans v. Lancashire & Yorkshire Railway Co. (1867), 2 Ch. App. 332 ; 36L. J. Oh. 361 36,61,94,106,188 3 27 22 HI 18 ...4,30 65, 62 . 33, 116, 184 ... 15 ... 12 ... 136 63, 60 76, 80 ... 90 39, 80, 52, 54, Sootson V. Pegg (1861), 6 H. & N. 296 ; 30 L. J. Ex. 225 Scott V. Coulson, [1903] 2 Ch." 249, C. A Scott V. Eastern Comities Railway (1843), 12 M. & W. 33 Scott «. England (1844), 2 D. & L. 620 Scriven Brothers v. Hindley & Co., [1913] 3 K. B. 664 Scrivener v. Great Northern Railway (1871), 19 W. R. 388 Seath V. Moore (1886), 11 App. Cas. 360 ; 55 L. J. R G. 54 Seddon v. North-Eastern Salt Co., [1906] 1 Ch. 326 ... Seton V. Lafone (1887), 19 Q. B. D. 68, 0. A Sewell V. Burdick (1884), 10 App. Cas. 74, H. L. Seymour, i?e, [1913] 1 Ch. 475, C. A Seymour v. London and Provincial Marine Insurance Co. (1872), 41 L. J. C. P. 193 Shardlow v. CottereU (1881), 20 Ch. D. 20 ; 51 L. J. Ch. 353 Sharman v. Brandt (1871), L. R. 6 Q. B. 720 ; 40 L. J. Q. B. 312 56,68 . 35 ... 64 108, 163, 164 6 132 23 24 Sharpe & Co. u. Nosawa & Co., [1917] 2 K. B. 814 87,116,118 Shaw V. Holland (1846), 15 M. & W. 136 ; 16 L. J. Ex. 87 116 Shaw w. Symmons & Sons, [1917] 1 K. B. 799 62 Sheffenius w. Goldberg, [1916] 1 K. B. 284, C. A 16 Sheldon V. Cox (1824), 3 B. & C. 420 5 Shenstone D. Hilton, [1894] 2 Q. B. 452 168 Shepherd v. Harrison (1871), L. R. 6 H. L. 116 ; 40 L. J. Q. B. 148 ... 52, 60 Shepherd j;. Kain (1822), 5 B. & Aid. 240 187 Shipton V. Casson (1826), 5 B. & C. 378 Shipton Anderson & Co., Re, [1915] 3 K. B. 676 Shipton Anderson & Co. v. Weil Bros., [1912] 1 K. B. 574 ; 17 Com. Cas, Sievewright v. Archibald (1861), 17 Q. B. 103 ; 20 L. J. Q. B. 629 Simmons v. Swift (1826), 5 B. & C. 867 Simond v. Braddon (1867), 2 C. B. (n.s.) 324 Simpson v. Crippin (1872), L. R. 8 Q. B. 14 ; 42 L. J. Q. B. 28 Sims j;. Marryat (1851), 17 Q. B. 281 Sims&Co.«. Midland Railway (1912), 18 Com. Cas. 44 Smeed «;. Poord (1859), 28 L. J. Q. B. 178 Smith V. Blandy (1825), Ry. & M. 257 Smith «. Chance (1819), 2 B. & Aid. 763 "... Smith V. Green (1875), 1 C. P. D. 92 163 81 29 82 ... 24 55,62 ... 183 36,84 ... 39 ... 65 115, 118 ... 185 ... 80 ... 121 TABLE OF CASES xxxvu Smith V. Hudson (1865), 34 L. J. Q. B. 145 Smith u. Hughes (1871), L. R. 6 Q. B. 597 Smith t>. Jeffiyes (1846), 15 M. & W. 561 Smith I?. Lascelles (1788), R. R. 457 Smith V. Mercer (1867), L. R. 3 Ex. 51 Smith V. Myers (1871), L. R. 7 Q. B. 139, Ex. Cli Smith V. Peters (1876), L. R. 20 Eq. 511 Snee V. Prescot (1743), 1 Abk. 245 Snowball, Ex parte (1872), L. R. 7 Ch. App. 534 Societe Anonyme v. Scholefield (1902), 7 Com. Cas. 114 Somes t)..British Empire Shipping Co. (1860), 30 L. J. Q. B. 229, H. L. Soper V. Arnold (1887), 14 App. Cas. 429 South Australia Insurance Co. v. Randell (1869), L. R. 3 P. C. 101 Spalding v. Ruding (1843), 6 Beav. 376 ; 12 L. J. Ch. 503 SpartaU v. Beneoke (1850), 10 C. B. 212 ; 19 L. J. C. P. 293 Speight u. Gaunt (1883), 9 App. Cas. 1 H. L Spence v. Union Marine Insurance Co. (1868), L. R. 3 C. P. 427 Spicer V. Cooper (1841), 1 Q. B. 424 Stanton v. Richardson (1872), t. R. 7 C. P. 421 Stapleton, .Ba; parte (1879), 10 Ch.D. 586; 14 L. T. 14 Starey v. Chilworth (1889), 24 Q. B. D. 90 Startup D. Cortazzi (1835), C. M. & R. 165 Startup V. Macdonald (1843), 6 M. & Gr. 593, Ex. Ch. Staunton v. Wood (1851), 16 Q. B. 638 Steinberger v. Atkmson & Co. (1914), 31 T. L. R. 110 Stein Forbes & Co. v. County Tailoring Co. (1916), 115 L. T. 215 Stewart w. Kennedy (1890), 15 App. Cas. 75 Stock V. Inglis (1884), 12 Q. B. f). 564 ; affirmed (1885), 10 App. Cas. 263 : 62, 86, 185 Stocks «. Wilson, [1913] 2 K B. 235 13,16 FAQE .. 22 18 .. 187 86 .. 185 27, 183 32 .. 105 .. 152 .. 187 .. 97 .. 31 .. 4,5 .. 108 91, 183 .. 146 .. 52 .. 186 .. 179 93, 97, 98, 109, 110, 114, 115 45 117 81, 89, 112, 184 183, 184 83, 98 : 88, 111, 184 120 78, ...79, Stoneham v. Stoneham, [1919] 1 Ch. 149 Stoweld V. Hughes (1811), 14 East, 308 Strass V. Spillers & Baker, [1911] 2 K. B. 759 , Street v. Blay (1831), 2 B. & Ad. 456 ... Strickland «. Turner (1852), 7 Ex. 208 ... Stucley V. Bailey (1862), 31 L. J. Ex. 483 Sutro & Co., Be, [1917] 2KB. 348, C. A. . Swain v. Shepherd (1832), 1 M. & Rob. 223 . Sweeting v. Turner (1871), L. R. 7 Q. B. 310 . Syers v. Jonas (1848), 2 Exch. Ill J. Ch, Taddy & Co. v. Sterious & Co., [1904] 1 Ch. 354 ; 73 L. Tager v. Tolme & Runge, [1916] 1KB. 939, C. A. Tailby v. Official Receiver (1888), 13 App. Cas. 523 ; 58 L. J Tamplin, Re, Bamett, Ex parte (1890), 7 Morr. 70 Tamvaco v. Lucas (1861), 30 L. J. Q. B. 234 Tancred t). Steel Co. of Scotland (1890), 15 App. Cas. 125, H, Tansley v. Turner (1835), 2 Bing. N. C. 151 Tarling v. Baxter (1827), 6 B. & C. 360 ; 5 L. J. (o.s.) K. B. Taylor v. BuUen (1850), 5 Exch. 779 ; 20 L. J. Ex. 21 Taylor v. CaldweU (1863), 3 B. & S. 826 ; 32 L. J. Q. B. 164 Taylor v. G. E. Railway, [1901] 1KB. 774; 70 L. J. K. B. 499: Taylor v. Jones (1876), 1 C. P. D. 87 5 ... 107 ... 186 121, 180 ... 27 34, 180 86, 128 ... 58 54, 62, 64 18, 43, 48, 49, 121 191... Q. B. 75 : L. 164 19, .. 32 .. 185 11,26 .. 67 81, 183 .. 187 .. 65 64,62 .. 187 28 21, 90, 106 ... 17 XXXVlll TABLE OF OASES. Taylor «. Kymer (1832), 3 B. & Ad. 320 154 Taylor V. Smith, [1893] 2 Q. B. 65, C. A 22,23 Tebbit Bros, u Smith (1917), 33 T. L. R. 506, C. A 187 Tdegrafo, The (1811), L.U. 3 'P. G.67S 64 Tenants (Lancashire), Ltd. v. Wilson, [1917] A. C. 496 29 Thacklin ?;. Newberry Sanitary Laundry (1919), S. J. 337 115 Thames Sack & Bag Co. «. Knowles & Co., [1918] W. N. 176 120 Thelman Freres v. Texas Flour Mill Co. (1900), 5 Com. Cas. 321, C. A. ... 189 ThirkeU v. Cambi, [1919] 2 K. B. 690, C. A 23, 24 Thol «. Henderson (1881), 8 Q. B. D. 457 ; 46 L. T. 483 117 Thomas v. Fredericks (1847), 10 Q. B. 775 ; 16 L. J. Q. B. 393 32 Thompson v. Dominy (1845), 14 M. & W. 403 164 Thompson «. Gardiner (1876), 1 C. P. D. 777 24 Thomett v. Beers & Sons, [1919] 1 K. B. 486 43 Thomett v. Haines (1846), 15 M. & W. 367 ' 129, 185 Thornton «;. Kempster (1814), 6 Taunt. 786 23 Thumell v. Balbimie (1837), 2 M. & W. 786 ; 6 L. J. Ex. 255 32 riffress, y^e (1863), 32 L. J. Adm. 97 105,106 Tilley «. Bowman, Ltd., [1910] 1 K. B. 745 69 Titmus w. Littlewood, [1916] 1 K. B. 732 •.. 140 Todd u Armour (1882), 9 R. 90, a. of Sess 12,68 Tolhur&t V. Poitland Cement, [1903] A. C. 414, H. L 11 Toulmin «. Hedley (1845), 2 C. i& K. 157 97 Tredegar Iron Co, v. Hawthorn (1902), 18 T. L. R. 716, C. A 118 TregeUes v. SeweU (1862), 7 H. & N. 574, Ex. Ch 56 Tremoille «;. Christie (1893), 37 Sol. Jo. 650 148 Tucker «. Humphrey (1828), 4 Bing. 516 93,^5 Turner v. Liverpool Docks (1861), 6 Bxch. 543 ; 20 L. J. Ex. 393, Ex. Ch. 60 Tyers v. Rosedale Co. (1875), L. R. 10 Ex. 196, Ex. Ch 25, 1 18 Union Bank u Munster (1887), 37 Ch. D. 51 ; 57 L. J. Ch. 124 129 Union Credit Bank v. Mersey Docks, [1899] 2 Q. B. 205 ; 68 L. J. Q. B. 842 149 United States Steel Products Co. v. Q. W. Railway, [1916] A. C. 185, H. L. 105, 127 Vagliano v. Bank of England, [1891] A. C. 107, H. L. Valpy V. Gibson (1847), 4 C. B. 837 ; 16 L. J. C. P. 241 Valpy V. Oakley (1851), 16 Q. B. 941 ; 20 L. J. Q. B. 380 . Van Casteel v. Booker (1848), 2 Exch. 691 ; 18 L. J. Ex. 9 , Vanderbergh v. Spooner (1866), L. R. 1 Ex. 316 Varleyy. Whipp, [1900] 1 Q. B. 513 Vickers v. Hertz (1871), L. R. 2 So. App. 113 Viokers v. Vickers (1867), L. R. 4 Eq. 629 Vic. Mills, Ltd., iJc, [1913] 1 Ch. 465, C. A Vigers v. Sanderson, [1901] 1 K. B. 608 ; 6 Com. Cas. 99 . Villars, Ex parte (1874), L. R. 9 Ch. App. 434 Vilmont v. Bentley (1886), 18 Q. B. D. 322, C. A Vincentelli v. Rowlatt, [1911] 2 K. B. 739 Vindobala, The (1887), 13 P. D. 42 ; 57 L. J. P. 37 ... Wackerbarth v. Masson (1812), 3 Camp. 270 Waddell 17. Blockey (1879), 4 Q. B. D. 678 Wait V. Baker (1848), 2 Exch. 1 ; 17 L. J. Ex. 307 ... ... , , , 143 ... 31, 102, 103 96, 97, 100, 107 6C 1,93 ... ... 23 40 •,41 152, 160 ... ... 32 , , , ,,, 114 40, 188 39 ... 57,68 1,71 88 64 184 ... ... 123 56, 58, 59, 60 ,84 TABLE OF 0A8HB. XXxix -w-rr 11 *- . PAGE Walker «. Matthews (1881), 8 0. B. D. 109 68 Walker V. MeUor (1848), 11 Q.B. 478 4 Walker V. Nussey (1847), 16 M. & W. 302 23 Walker «. Shaw, [1904] 2 K. B. 152 48,188 WaUer «;. Drakeford (1863), 1 E. & B. 747 10 Walley V. Montgomery (1803), 3 East, 585 1 Wallis t;. Pratt, [1910] 2 K. B. 1003 91,141 Wallis V. Pratt, [1911] A. C. 394, H. L 36,40,188 Wallis V. Russell, [1902] 2 I. R. 585 ; 36 I. L. T. 67, C. A. ... 43, 44, 46, 47, 143 Walton «. MaacaU (1844), 13 M. & W. 452 112 Ward, £a; parte, [1905] 2 K. B. 465 ; 69 Ward V. Hobbs (1879), 4 App. Cas. 13 ; 48 L. J. Q. B. 281 ... 41, 42, 126, 187 Warde w Stewart ( ), 1 C. B. (n.s.) 88 187 Warlow V. Harrison (1858), 28 L. J. Q. B. 19 129, 130 Warrington ?;. Furbor (1807), 8 East, 242 169 Watkins v. Rymill (1883), 10 Q. B. D. 178 17, 182 Watson, £a: parte (1877), 6 Ch. B. 35, C. A 102,105 Watson, JJe (1890), 25 Q. B. D. 27, C. A 4 Watts w. Friend (1830), 10 B. & C. 446 25 Waynes Merthyr Steam Coal Co. v. Morewood (1877), 46 L. J. Q. B. 746 : 112, 114, 185 Webb «;. Eairmaner (1838), 3 M. & W. 473 33 Weiner v. Gill, [1906] 2 K. B. 574, C. A 56, 64, 189 Weiner v. Harris, [1910] 1 K. B. 285 ; 15 Com. Cas. 39 ... 4, 147, 148, 189 . Weis & Co., iJe, [1916] 1 K. B. 346 29 Wentworth u. Outhwaite (1842), 10 M. & W. 436 109 Wertheim v. Chicoutimi Pulp Co., [1911] A. C. 301, P. C ... 114, 116, 118, 119, 123 West Ham Guardians i\ Pearson (1890), 62 L. T. 638 14 Westzinthus, .Re (1833), 5 B. & Ad. 817 , 108 Whistler 1). Porster (1863), 32 L. J. C. P. 161 66 White, Ex parte, Ne-viU, Re (1870), L. R. 6 Ch. App. 397 4, 55 White V. Garden (1851), 10 C. B. 919 ; 20 L. J. C. P. 1 66 69 White ?;. Proctor (1811), 4 Taunt. 209 24 White j;. Williams, [1912] A. C. 814, P. C 186 Whitehead I). Anderson (1842), 9 M. & W. 518 102,103,105,106 Whitehom Bros. v. Davison, [1911] 1 K. B. 463, C. A 69, 71 Wiche I). Dennis Bros. (1913),' 29 T. L. R. 250 62 Wieler v. Schilizzi (1856), 17 C. B. 619 ; 26 L. J. C. P. 89 41 Wigglesworth v. Dallison (1779), 2 Smith, L. C. 11th Ed., 545 ; 1 Doog. 201 : 127 Wigram i;. BucMey, [1894] 3 Ch 74 Wilkinson v. Evans (1866), L. R. 1 C. P. 407, C. A 23 Wilkinson u King (1809), 2 Camp. 335 68 Wilks V. Atkinson (1815), 1 Marsh 412 ; 6 Taunt. 11 77, 78 WilUamsi;. Agius, [1914] A. C. 510, H. L 117,119 Williams v. Reynolds (1865), 34 L. J. Q. B. 221 117 Wilson z). DunviUe (1879), 6 L. R. Ir. 210 121 Wilson V. Glossop (1888), 20 Q. B. D. 354, C. A 15 Wilson Holgate & Co. v. Belgian Grain Co., [1919] W. N. 180 87 Wimble v. Rosenberg & Sons, [1919] 3 K. B. 743, C. A. ... 78, 86, 86, 87, 143 Withers i;. Reynolds (1841), 2 B. & Ad. 882 84 Wolf & Sons 1). Carr Parke & Co. (1915), 31 T. L. R. 407, C. A 16 Wood t). Baxter (1883), 49 L. T. (n.s.) 45 76 xl TABLE OF CASES. Wood V. Lewis, [1914] 3 K. B. 73, C. A. Wood V. Rowolifie (1846), 6 Hare, 183 ... Wood V. Smith (1829), 5 M. & B. 124 ... Wood V. Tassell (1844), 6 Q. B. 234 ... Woodland v. Fuller (1840), 11 A. & E. 849 Woodley V. Coventry (1863), 32 L. J. Ex. 185 Woods V. RusseU (1822), 5 B. & Aid. 942 Woolf Phillips V. Brooks (1919), 24 Com. Cas. 263 Woolfe V. Home (1877), 2 Q. B. D. 355, C. A. Wren v. Holt, [1903] 1 K. B. 610, C. A. WylUe V. Povah (1907), 12 Com. Cas. 317 Xenos V. Wiokham (1867), L. R. 2 H. L. 296 ... Yangtsze Ins. Association v. Lukmanjee, [1918] A. C. 585 299, P. C Yates V. Pym (1816), 6 Taunt. 446 Young V. Matthews (1866), L. R. 2 C. P. 127 ... . Yuill V. Robson, [1908] 1 K. B. 270 ; 77 L. J. K. B. 259, C, PASS 14 148 188 80 74 107 58 69 36, 76, 184 44, 49, 131 7. 57 23 Com. Cas. 78, 88 187 ... 52, 54, 55 A. ... 88, 186 Zagury v. Purnell (1809), 2 Camp. 239 ... 55 THE SALE OF GOODS ACT, 1893. (56 & 57 Vict. c. 71.) An Act for codifying the Law relating to the Sale of Goods (a). [20th February, 1894.] INote. — Scottish technical terms, which were inserted in the Bill when it was applied to Scotland, are printed in square brackets.] PART I. TOBMATION OF THE CONTRACT. Contract of Sale. 1. — (1.) Sale and agreement to sell. — A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price (S). There may be a contract of sale between one part owner and another (e). (2.) A contract of sale may be absolute or conditional (d). {a) Short title " The Sale of Goods Act, 1893," see sect. 64:, post. (6) By sect. 62 " buyer " means a person who buys or agrees to buy goods. There must therefore be a consent to buy as well as a consent to sell, Helby v. Matthews, [1895] A. C. 471, H. L. (option to buy) ; Belsize Motor Supply Co. v. Cox, [1914] 1 K. B. 244 (option to buy) ; Manders v. Williams (1849), 5 Exch. 339 (option to sell. No contract of sale till option exercised). See a conditional agreement to buy distinguished from an option to buy, Martin v. Whale, [1917] 2 K. B. 480, C. A. (c) See note post, p. 3, and as to sale by a co-owner to a third party, and the remedies of co-owners, inter se, see post, p. 67. As to sale of undivided moiety of specific chattel, creating co-ownership, see Marson v. Short (1835), 2 Bing. N. 0. 118. (d) See note post, p. 6 ; Laws of England, yol, xyv., p. 115 ; and cf. Walley v. Montgomery (1803), 3 East, 585, 590. C.S.G. B 2 THE SALE OF GOODS AGT, 1893. (3.) Where under a contract of sale the property in the goods is transferred from the seller to the buyer the contract is called a sale ; but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled the contract is called " an agreement to sell " (e). (4.) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred (/). This section appears to be purely declaratory. By sect. 62, post, " buyer " means a person who buys or agrees to buy goods, and " contract of safe " includes an agreement to sell as well as a sale ; and " sale " includes a bargain and sale as well as a sale and delivery ; and " property " means the general property in goods and not merely a special property. The general prc^erty or ownership in a thing must be distinguished from a merely special property, such as that of a bailee, see post, p. 139 ; and see the right of property in a thing distinguished from the right to the possession of it, post, p. 139. See " goods " defined by sect. 62, post, p. 136 ; and as to the " price," see sects. 8 and 9, post. The definition of " sale " has been criticised as failing to distinguish a contract, by which a jus in personam is created, from a conveyance, by which a jus in rem is transferred. But the language of English law is inveterate, an agreement to sell being known as an executory contract of sale, while a sale is known as an executed contract of sale. As to the scope of the term " contract," see note, ^osi, p. 174. Belation of sale to contract generally. — Pothier points out that the contract of sale is consensual, bi -lateral (synallagmatique), and commutative {cf). In part it is governed by principles peculiar to itself, and in part by j)rinciples common to all contracts of the description above referred to. The Act, except incidentally, deals only with the first-mentioned principles. The principles of law which govern the contract of sale, in common with aU other consensual contracts, are outside its scope. But they are expressly saved by sect. 61, post, p. 131. If the law of contract were codified, the present Act would form a single chapter in the code. The present work is limited in the (e) Cf. Heilbuttv. Hickson (1872), L.R. 7 0. P., at p. 449 ; Marten v. Whale, [1917] 2 K. B. 480, at p. 484, 0. A. Laws of England, vol. xxv., p. 117. (/) Bishop V. Shillito (1819), 2 B. & Aid. 329, n. (special condition) ; Sohde v. Thwaites (1827), 6 B. & 0. 388, at p. 398 (appropriation of goods to contract) ; Bianchi v. Nash (1836), 1 M. & W. 545 (special condition) ; Ex p. Crawcour, he Bohertson (1878), 9 Ch. D. 419, at p. 424, 0. A. ; McEntire v. Crossley, [1895] A. 0. 457 (hire purchase agreement) ; Beeves, v. Barlow (1884), 12 Q. B. D. 436, -at p. 442, C. A. (building contract). See further, sects. 16-20, ^josi, p. 51. (3) Pothier, Oordrat de Vente, § 1. See also Moyle's Sale in the Civil Law, pp. 1-3. CONTBAGT OF SALE (SECT. 1). 3 same manner as the Aot. The contract of sale must be founded on mutnal consent, and it may be avoided for fraud or illegality. But as regards these matters, and such matters as substituted performance, rescission, or what constitutes a valid tender of the price, the reader is referred to general works on the law of Contract. Sub-sect. 1. — Seller and buyer must be different persons. — The essence of sale is the transfer of the property in a thing from one person to another for a price. Hence it has been said that if a man purchase his own goods there is no sale. Suse rei emptio non valet, sive sciens sive ignoraTis emerit (h). But one co-owner may sell to another, a partner may seU to his firm, and the firm may sell to a partner (z), and there are clearly certain quasi- exceptions to the rule ; for instance, when a man's goods are sold under an execution or distress he may himseK become the purchaser. Before the Married Women's Property Acts, a wife could not sell to, or buy from, her husband, for they were in contemplation of law but one person. Now she can do so (k). So, too, a bank- rupt may buy back his own goods from his trustee, " though the trustee, the auctioneer, or any one having a fiduciary character, is precluded from becoming a purchaser by the general policy of the law which prohibits an agent from selling to himself " (I). The true position seems to be this ; buyer and seller must be different persons, but where one person has by law the right to sell another person's goods, that other person may purchase his own goods. As to the supply of liquor in a club to a member of the club, see post, p. 11. Hatnie of sale. — Pothier, writing before the Code Napoleon, objects to sale being defined as a transfer of the property iu a thing, because, he says, a man may in good faith sell a thing which is not his own, and if this be so the buyer cannot complain until his possession is disturbed. The seller, he says, merely contracts with the buyer, " de lui faire avoir librement, i titre de proprietaire, une chose pour le prix d'une certaine somme d'argent." In this view he followed the Civil Law, Hactenus tenetur ut rem emptori habere liceat nonut ejusfaciat (m). The objection seems hypercritical, for, as between the parties to the contract, sale is a transfer of the property in the goods sold. The purport of the contract is that the seller divests himseK of all proprietary right in the thing sold in (h) Black. Com., 450 ; jPothier, Contrat de Vente, 'No. 8 ; cf. Scotson v. Pegg (1861), 60 L. J. Ex., at p. 226, per WUde, B. ; King v. England (1864), 33 L. J. Q. B. 145 (distrainor taking goods at valuation), approved Moore v. Singer Manufacturing Co., [1904] 1 K. B. 820, C. A. (distrainor buying at auction goods distrained) ; Plasycoed Collieries Co. v. Partridge, Jones & Co., [1912] 2 K. B. 345 (distrainor). For power to assign personal property to self and others, see Law of Property Amendment Act, 1859 (22 & 23 Vict. e. 35), s. 21. (i) Be McLaren (1879), 11 Oh. D. 68, C. A. A partner, of course, must not make a secret profit ; cf. KuhUz v. Lambert Bros., Ltd. (1913), 18 Com. Gas. 217, 226 (oo- adventurer). {k) Bamsay v. Margrett, [1894] 2 Q. B. 18, C. A. (i) Mtson V. Hardunck (1872), L. E. 7 C. A., at p. 478 ; cf. Armstrong v. Jackson, [1917] 2 K. B. 822. (ot) Pothier, Contrat de Vente, No. 1 and No. 48 ; Moyle's Sale in the Civil Law, pp, 3, 108. 4 THE SALE OF GOODS ACT, 1893. favour of the buyer (w). The framers of the Code Napoleon adopted this opinion, and in France, as in England, an unconditional sale passes the p:;:operty in the thing sold, so far as the parties to the contract are concerned (o). Cognate contracts. — ^"Whether a given contract be a contract of sale or some other kind of contract is a question of substance and not of form. Thus it depends on the real meaning and nature of a contract whether it is to be construed as a contract of sale or a mere guarantee for the price (p) ; as a contract of sale or a bailment on trust (g) ; as a contract of " sale or return," or a contract of del credere agency (r) ; as a contract of sale or a contract for sale on commission (s) ; as a contract of sale or a contract of loan on security or mortgage (f) ; as a contract of sale or a mere wager (w) ; as a contract of sale or contract for work and materials (x) ; as a contract of sale or a contract of hiring (y) ; as a contract of sale or a contract to do work as an agent (z) ; "as a contract of sale or a licence to get mineral products from land (a). By sect. 61 (4), post, it is expressly provided that " the provisions of this Act relating to contracts of sale do not apply to any transaction in the form of a contract of sale which is intended to operate by way of mortgage, pledge, charge, or other security." The question whether a given contract be a contract of sale or some other allied form of contract, though often difficult to determine, is of practical, and not merely of theoretical importance. Work and materials. — A contract for work and materials does not come within sect. IV of the Statute of Frauds, now reproduced in sect. 4 of this Act ; but if in writing it must be properly stamped, whereas contracts of sale are exempt from stamp duty, see Stamp Act, lS91,post, p. 169. Opinions have differed much as to the test for distinguishing between these two contracts, but since the case of Lee V. Griffin, decided in 1861, the rule seems to be that if the contract is intended to result in transferring for a price from A to B an article in which (n) Of. Walker v. Mellor (1848), 11 Q, B. 478. (o) French Civil Code, art. 1583 ; Italian Commercial Code, art. 59. (p) Button V. Lippert (1883), 8 App. Gas. 309, P. C. (2) South Australian Ins. Co. v. BaM,dell (1869), L. E. 3 P. 0. 101. Cf. Comber V. Leyland, [1898] A. C, at p. 530, H. L. (r) Ex p. White, Be Nevill (1870), L. E. 6 Oh. App. 397 ; cf. Ex p. Bright (1879), 10 Oh. D. 565, 0. A. ; Weinerv. Harris, [1910] 1 K. B. 285, C. A. (s) The Prim Adelbert, [1917] A. 0. 586, P. 0. For a hybrid contract of sale and agency, see The Kronprincessin CeciUe (1917), 83 T. L. B. 292 P. C. (0 Exp. Harvey & Co. (1890), 7 MorreU, 138; Be Watson (1890), 25 Q. B. D. 27, 0. A. ; Madell v. Thomas, [1891] 1 Q. B. 230, C. A. ; Maas v. Pepper, [1905] A. 0. 102, H. L. (bin of sale cases) ; cf. sect. 61 (4), post, p. 132. The Ortheric, [1920] A. C. 724, P. C. (bill of exchange with bill of lading attached, " sold " to bank). (u) Bourke v. Short (1856), 25 L. J. Q. B. 196 (alternative price as a wager). (x) Lee V. Griffin (1861), 30 L. 3. Q. B. 252 (artificial teeth made to order, sale). (j/) Muirhead v. Dickson (1905), 7 F. 686, Court of Session ; Brooks v. Bierhstein, [1909] 1 K. B. 98. (0) Dixon V. London Small Arms Co. (1876), 1 App. Gas. 633, at pp. 645, 648, 654. (a) Morgan v. Bussell & Son, [1909] 1 K. B, 357, See further Laws of England, vol. XXV., p. 113, CONTRACT OF SALE (SECT. 1), 5 B had no previous property, it is a contract of sale (6). But is this exhaustive P Suppose an artist paints a picture for a picture dealer who supplies him with canvas, paint, and brushes, is not this sale (c) ? Gift. — Where goods are transferred by one person to another without any price or other consideration being given in return, the transaction is called a gift. Where a gift of goods is not effected by deed (d), it is incomplete and ineffectual until delivery to the donee of the thing intended to be given. Donatio perficitur possessione accipientis. The intention to transfer the pro- perty is of no avail. The distinction between sale and gift in this respect has been elaborately discussed by Lord Bowen (e). So, again, a gift must be distinguished from a declaration of trust. In the case of a gift there must be a transfer of possession, in the case of a declaration of trust the trustee must retain, and intend to retain, the control. An inchoate gift falls between the two (/). Exchange of goods or barter. — Where the consideration for the transfer of the property in goods from one person to another consists of other goods, the contract is not a contract of sale, but is a contract of exchange or barter {g). But if the consideration for such a transfer consists partly of goods and partly of money, it seems that the contract is a contract of sale Qi). Thus where 32 bullocks, valued at £6 a piece, were tb be exchanged for 100 quarters of barley at £2 per quarter, the difference to be paid in cash, the contract was treated as a contract of sale (i). But where goods were supplied on the terms that they were to be paid for by the bill of a third party, without recourse to the buyer if the bill was dishonoured, the contract was treated as exchange not sale (j). (6) Lee v. Griffin (1861), 80 L. J. Q. B. 252, at p. 254, per Blackburn, J. ; cf. Anglo-Egyptian Navigation Go, v. Bennie (1875), L. E. 10 0. P. 271 (boilera for ship, work and materials) ; Law Quarterly Review, vol. i., p. 8, and Laws of England, vol. XXV., p. 114. The difficulty ia an old one, and was much debated by the Roman lawyers. See Inst. III., 24, 4, and Moyle's Sale in the Civil Laio, pp. 6-8. (c) Cf. Dixon V. London Small Arms Co. (1876), 1 App. Cas. 683, at 646, 648. (d) Be Seymour, [1918] 1 Oh. 475, C. A. (deed). (e) Cochrane v. Moore (1890), 25 Q. B. D. 57, 0. A. (attempted gift of undivided fourth part of a racehorse) ; Law Quarterly Beview, vol. vi.,p. 446 ; Kilpin v. Ratley, [1892] 1 Q. B. 582 (constructive delivery of furniture) ; Cain v. Moon, [1896] 2 Q. B. 283, 289 (constructive delivery) ; Stoneham v. Stoneham, [1919] 1 Oh. 149 (construc- tive delivery). (/) Cf. Richards v. Delbridge (1S74), L. R. 18 Eq. 11. (g) Harrison v. Luke (1845), 14 M. & W. 139 ; French Oivll Code, art. 1702 ; Laws of England, vol. xxv., p. 109. {h) Aldridge v. Johnson (1857), 26 L. J. Q. B. 296; Sheldon v. Cox (18241, 3 B. & 0. 420, where the goods had been delivered and the action was brought for the money balance. Cf. Forysth v. Jervis (1816), 1 Stark. 437 ; Bull v. Parker (1842), 12 L. J. Q. B. 98 ; Barman v. Beeve (1856), 25 L. J. 0. P. 257 ; South Australian Ins. Co. V. Bandell (1869), L. R. 3 P. 0. 101 (alternative consideration). (i) Aldridge v. Johnson (1857), 26 L. 3. Q. B. 296. (;■) Beid v. Hutchinson (1813), 3 Oamp. 851. 6 THE SALE OF GOODS ACT, 1893, When a statute refers in terms to contracts of sale (as, for instance, the Sale of Goods Act or the Stamp Act), it seems clear that it would have no application to contracts of exchange. Sect. 5 of Factors Act, 1889, post, p. 154. for its special purpose, draws a distinction between sales and exchanges. But, apart from statute, it seems that rules of law relating to sales apply iu general to contracts of barter or exchange; but t£e question has been by no means fuUy worked out (k). The BiU originally contained a clause applying its provisions mutatis mutandis to exchanges, but the clanse was cut-out by the Commons Select Committee. The distinction between sale and exchange seems a universal one. Its effects in France are discussed at length by Pothier(Z). In Roman law the matter was long a subject of controversy, but it was eventually settled by imperial rescripts (m). " It is important," says Mr. Moyle, speaking of Roman law, " to distinguish between sale {emptio venditio) and exchange (permutatio) for they belong to different classes of contract, and their respective m'ncwZajitris- are imposed by different causx. Permutatio is one of the innominate contracts ; there is no ohligatio till one of the two exhanging parties has done what he has promised ; but in sale which is consensual, the ohligatio is independent of part performance. It is not, however, necessary that the whole price shall be in money (Dig. 18, 1, 79) ; and if, after the contract is concluded, the vendor changes his mind and agrees to take goods in Heu of the purchase-money, it remains sale, and does not become exchange " (n). Sub-sect. 2. — Conditional contracts of Sale. — As the contract of sale is con- sensual, it follows that it may be either absolute or conditional, as the parties may please. The conditions inserted by the parties may be either conditions precedent or conditions subsequent. In the apt phraseology of the French and Civil lawyers, a contract of sale may be either a sale pure and simple, transferring the property absolutely to the buyer, or it may be subject to a "suspensive" or "resolutive" condition (o). The division of conditions into those which are suspensive and those which are resolutive is convenient, because those terms mark clearly the distinction between an agreement for sale which is to become an actual sale on the fulfilment of a particular condition, and an actual sale passing the property to the buyer, but subject to defeasance on the happening of some specified event. When goods are sold by weight or measure, (7c) Cf. Fairmaner v, Budd (1831), 7 Bing. 674 ; Emanuely. Dane (1812), 3 Camp. 299 (warranty) ; La Neuville v. Nourse (1813), 3 Camp. 350 (caveat emptor) ; Pothier, Contrat de Vente, No. 620, citing the rule permutatio vicina est empUoni ; French Civil Code, arts. 1702-1707. (I) Pothier, Contrat de Vente, No. 620, and see arts. 1702-1707 of the French Civil Code, which now regulate the matter. (to) Moyle's Sale in the Civil Law, pp. 3-5 ; Moyle'a Justinian, p. 420. («) Moyle's Justinian, p. 420. By art. 1703 of the French Civil Code, the contract of exchange is made consensual like sale. As to the origin of sale in exchange, and how the two contracts were difEerentiated, see Dig. 18, 1, 1. (o) French Civil Code, arts. 1583, 1584 ; cf. Moyle's Sale in the Civil Law, p. 165 ; Murdoch v. Oreig (1889), 16 R. 396 (Court of Session). CONTRACT OF SALE (SECT. 1). 7 the weighing and measuring are suspensive conditions, and if goods he sent on approval, the approval of the buyer constitutes a suspensive condition (see sect. 18, (4) post). But if goods he sold by auction with a condition that they may be re-sold if not paid for within twenty -four hours, the condition is reso- lutive (y). As a contract of sale may be conditional, the parties may attach such consequences as they see fit to the non-fulfilment of the condition. They may stipulate that in the event of non-fulfibnent both parties shall be dis- charged from their obligations, or that the seller shall not be bound to deliver, or that the buyer shall not be bound to pay the price (g). Uortgage of goods. — A mortgage is sometimes called a con'ditional sale, but, as Cave, J., has pointed out, a sale with a condition for re-sale to the original seller need have nothing to do with a mortgage (r). A mortgage of goods may be defined as a transfer of the general property in goods from mortgagor to mortgagee in order to secure a debt (s). This Act has no application to any mortgage, even though clad with the form of a contract of sale ; see sect. 61 (4), post, p. 132. If a mortgage of goods be in writing, it usually comes within the Bills of Sale Acts, 1878 and 1882. But it seems that goods maybe mortgaged by parol (f). Such a mortgage apparently comes under neither this Act nor the BiUs of Sale Acts ; for the latter Acts strike only at documents, and not at the transactions themselves (m). Letters of hypothecation. — A letter of hypothecation of imported goods need not be registei'ed as a bill of sale (a;). Pledge. — A pledge may be defined as a delivery or bailment of goods by one (J)) See Lamond v. Davall (1847), 9 Q. B. 2030; Head v. Tattersall (1871), 7 L. E, Ex. 7 (horses). For a peculiar resolutive condition containing a term for novation, see Orissell v. Bristowe, L. B. i 0. P. 36 (sale on Stock Exchange). Eor an example of a ship sold conditionally, see The Bipon City, [1897] P. 226. See, too, Wyllie V. Povah (1907), 12 Com. Cas. 317, 321 (goods sold while at sea, in case of non-arrival the contract to be void). (g) Calcutta Co. v. De Mattos (1863), 32 L. J. Q. B. 322, at p. 828 ; Laws of England, vol. xxv., pp. 115, 116. Cf. New Zealand Shipping Co. v. Sacieti des Ateliers de France, [1919] A. C. 1 (H. L.). (r) Beckett v. Tower Assets Co., [1891] 1 ;Q. B. at p. 25 ; cf. Manchester, <£c. By. V. North Central Wagon Co. (1888), 13 App. Cas. 554, H. L. (s) Keith V. Burrows (1876), 1 0. P. D., at p. 731, per Lindley, L.J. ; Ex p. Hubbard (1886), 17 Q. B. D., at p. 698, per Bowen, L.J. A memorandum of a pledge of goods containing a power of sale is not a mortgage for stamp purposes, Be Attenborough (1855), 14 Exoh. 461. (t) Maughan v. Sharp (1864), 34 L. J. C. P. 19, and cf. Beeves v. Capper (1828), 5 Bing. N. C. 136 ; London and Yorkshire Bank v. White (1895), 17 T. L. R. 570. (u) North Cent. Wagon Co. v. Manchester By. (1887), 35 Oh. D., at p. 206, C. A: {x) Bills of Sale Act, 1890 (53 & 54 Vict. c. 53), as amended by Bills of Sale Act, 1891 (54 & 55 Vict. c. 85). As to registration of charges created by limited companies, see sect. 93 of the Companies (Consolidation) Act, 1908 (8 Edw. 7, c 69), and Ladenburg <& Co. v. Goodwin, [1912] 3 K. B. 275 (hypothecation of proceeds of exported goods=charge on book debts). 8 THE SALE OF GOODS ACT, 1893. person to another in order to secure payment of a debt (2/). If the pledgor makes default in paying the debt the pledgee may seU the goods after notice to the pledgor (a). A pledge differs from a mortgage— (1) because the mortgagor may retain possession, while a pledge must be delivered to the pledgee; (2) because the mortgagee obtains the general property in the goods, while the pledgee only obtains a special property necessary to secure his rights (a). Note a wider definition of pledge given by sect. 1 (5) of the Factors Act, 1889, for the purposes of that Act, post, p. 150. Sub-sect. 3. — Sale and agreement to sell distinguished. — The term contract of sale includes both actual sales and agreements for sale. It is important to distingfuish clearly between the two classes of contracts. An agreement to sell, or, as it is often called, an executory contract of sale, is a contract pure and simple ; whereas a sale, or, as it is called for distinction, an executed contract of sale, is a contract plus a conveyance (5) . By an agreement to sell a jits in personam is created, by a sale a jus in rem is transferred. Where goods have been sold, and the buyer makes default, the seller may sue for the contract price, but where an agreement to buy is broken, the seller's remedy is an action for un- liquidated damages. If an agreement to sell be broken by the seller, the buyer has only a personal remedy against the seller. The goods are still the property of the seller, and he can dispose of them as he Hkes ; they may be taken in execution for his debts, and, if he becomes bankrupt, they pass to his trustee, who may disclaim the contract. But if there has been a sale, and the seller breaks his engagement to deliver the goods, the buyer has not only a personal remedy against the seller, but also the usual proprietary remedies in respect of the goods themselves, such as the actions for conversion and detinue. In majiy cases, too, he can follow the goods into the hands of third parties. Again, if there be an agreement for sale, and the goods are destroyed, the loss, as a rule, falls on the seller, while, if there has been a sale, the loss, as a rule, falls upon the buyer, though the goods have never come into his possession. Sub-sect. 4. — rAgreement to sell passing into sale. — By sect. 62,post, p. 139, the (2/) Story on Bailments, §§ 7, 286, citing Dig. 13, 7, 2. Propria pignus dicimus, guod ad creditor em transit; hypothecam, cum non transit neepossessio ad creditorem. (z) Story on Bailments, { 308, and see generally the notes to Ooggs v. Bernard, 1 Smith Lead. Gas., and p. 139, post. The power of a pledgee to sell without the intervention of any court ia peculiar to English law, see The Odessa, [1916] A. 0. 145, at p, 162, P. 0. As to Scotland, see Green's EncyclopcBdia of Scots Law, tit. " Pledge." (a) HallidayY. Holgate (1868), L. B. 8 Ex. 299, Ex. Ch. ; see per Willes, J. ; Exp. Hubbard (1886), 17 Q. B. D. at p. 698 ; Re Morrit (1886), 18 Q. B. D. at p. 232 ; see a mere lien distinguished from a pledge, Donald v. Suckling (1866), L. B. 1 Q, B. at p. 612 ; c/. Howes v. Ball (1827), 7 B. & C. 481 (hypothecation) ; and see pledge and sale contrasted, Burdick v. Sewell (1884), IS Q. B. D. at p. 175, o'. A., and 10 App. Gas. at p. 98. (6) By sect. 62, post, " sale " includes a bargain and sale as well as a sale and delivery. QUASI-CONTRACTS OF SALE (SECT. 1). 9 term " sale " includes a bargain and sale, as well as a sale and delivery (e). According to the Civil Law which, with some statutory modifications, prevailed in Scotland before the Act, the property in the goods sold did not pass to the buyer until delivery (d). But English law has rejected the objective test of delivery, and has adopted the rule that the property in the goods may be trans- ferred by the contract itseH if the parties so intend (e). The parties may make whatever bargain they please, and the law will give effect to it. When the parties express their intention clearly no difficulty arises. The contract may pass the property at once, or at a future time, or contingently on the performance of some condition (/). But in many cases the parties either form no intention on the point, or fail to express it. To meet such cases the Courts worked out a series of more or less artificial rules for determining when the property is to be deemed to pass, according to the imputed intention of the parties. These rules are now reproduced in sect. 18 of the Act, post. M. YioUet, in an interesting chapter in his " History of French Law," traces the steps by which French lawyers gradually discarded delivery as the means of passing the property, and arrived at a rule similar to our own (g). Quasi- Contracts of Sale. The Act deals only with contracts of sale, properly so called. But there are certain quasi-contracts of sale which require to be noted. By a quasi-contract of sale is meant a ti-ansaction to which, independently of the will of the parties, the law annexes consequences similar to those which result from a sale (h). For example : — ■ (1) Satisfied judgment in trover, trespass, or detinue. — Wherein an action for trespass to, or the conversion or wrongful detention of goods, the plaintiff recovers the fuU value of the goods as damages, and the defendant satisfies the judgment, the transaction operates as a sale of the goods from the plaintiff to the defendant as from the time when the judgment is satisfied (i). (c) As to the old distinction between the action for goods bargained and sold and the action for goods sold and delivered, see BuUen and Leake, Free, of Plead,, 3rd ed., pp. 8, 9, and see now ed. 6, pp. 273, 275. (d) See McBaAn v. Wallace (1881), 6 App. Cas. at pp. 605, 608 ; and Moyle's Sale m the Civil haw, p. 110. - (e) See Blackburn on Sale, pp. 187-197, who finds traces of the rule as far back as -the time of Edward i. The history of the question is treated exhaustively in the judgment in Cochrane v. Moore (1890), 25 Q. B. D. 57, C. A (gift of a horse). (/) Johnson v. Macdonald (1842), 9 M. & W. 600 (sale of goods to arrive) ; McEntire V. Crossley (1895), A. C, at p. 463 (hire-purchase). (g) VioUet, Histoire du Droit Eranqais, pp. 515-523. See now French Civil Code, art. 1583. (A) As to quasi-contracts, see Anson on Contracts, ed. 13, pp. 9, 416. (i) Jenkins' ith Centj Cos., No. 88, as to trespass, citing the maxim, " Solutio pretii emptionis loco habetur " ; Cooper v. Shepherd (1846), 3 0. B. 226, 15 L. J. C. P. 237 ; Brinsmead v. Harrison (1871), L. E. 6 C. P. 584, at p. 588, as to trover or conversion; Ex p. Drake (1877), 5 Ch. D. 866, 0. A., as to detinue; c/. Eberle v. Jonas (1887), 18 Q. B. D., at p. 468. 10 THE SALE OF GOODS ACT, 1893. "The theory of the judgment in Hn action of detinue," says Jessel, M.R., " is that it is a kind of involuntary sale of the plaintiff 'i3 goods to the defendant. The plaintiff wants to get his goods hack, and the Court gives him the next best thing, that is the value of the goods. If he does not get that value then he does not lose his property in the goods " (fc). It has been suggested that ■when the judgment is satisfied the defendant's title relates back to his wrongful act (Z) : but the doctrine of relation is not in accordance with the general principles of English law. An unsatisfied judgment does not transfer the property. (2) Sale induced by fraud. — It has been held that where a plaintiff has been induced, by the fraud of a third person, to sell goods to an insolvent buyer, and such third person has afterwards obtained the goods himself, the plaintiff may waive the tort, and treat the transaction as a sale to such third person (m). (3) Waiver of tort. — Again, there are many cases where, when one person has wrongfully obtained possession of the goods of another, the owner of the goods may waive the tort, and treat the transaction as a sale by himself to the person who has got the goods (n). So, too, when goods have been sold by a person who has no right to seU them, " the owner may waive the tort and recover the proceeds in an action for money had and received " (o). (4) Sale by estappel. — So, too, there may be a sale by estoppel. Suppose a defendant sells specific goods to one person, and the documents of title to the goods to another person, he would be liable to both, though a doubt might arise as to which person would be entitled to the goods themselves. So, too, a person holding himself out as the buyer may be liable as such (p). Conversely a person who stands by and lets his goods be sold is bound by the sale (q). For further instances of quasi-contract, see notes to next section (persons incompetent to contract). (&) Ex p. Drake (1877), 5 Ch. D. 866, at p. 871, C. A. ; but cf. Bradley v. Ramsay d Co. (1912), 106 L. T. 771, C. A. (goods on appro., efEeot of unsatisfied judgment by consent). (1) Addison on Torts, ed. 17, p. 550. (m) Bill V. Perroit (1810), 3 Taunt. 274. (n) Rice v. Reed, [1900] 1 Q. B. 54, C. A. (wrongful sale by servant, evidence of election to waive torfcji. (o) Arnoldv. Cheque Bank (1876), 1 C. P. D. at p. 585; cf. Dickinson v. Naul ^1833), 4 B. & Ad. 688 ; AlUn v. Hopkins (1844), 13 M, & W. 94, 102. (p) Cornish v. AUngton (1859), 28 L. J. Ex. 262. As to property by estoppel, see Oillett V. Hill (1834), 2 Or. & M. 530 (wharfinger accepting delivery order estopped from denying he had the goods) ; Coventry v. Great Eastern Railway Co. (1883), 11 Q. B. D. 776 (two delivery orders for same goods) ; cf. Henderson v. Williams (1895), 1 Q. B. 521 (person getting delivery order by pretending to be an old customer) ; Farguharson Brothers v. King& Co., [1901] 2 K. B. 697, C.-A. reversed, A. 0. (1902), 325 H. L. (fraudulent clerk giving delivery order in fictitious name and then selling to plaintifi) ; Law Quarterly Review, vol. xviii., p. 159. (2) Waller v. Drakeford (1853), 1 E. & B. 749; Cohen v. Mitchell (1890), 25 Q. B. D. 262, C. A. (sale by bankrupt, trustee not intervening). CONFLICT OF LAWS (SECT. 1). 11 Liquor sold in clubs. — Where intoxicating' liquor, which is hond fide the property of a club, is supplied to a member of the club, who pays for it, the transaction, though resembling a sale, is not a sale within the meaniag of the Licensuig Acts. In substance the member is consuming his own property, and the mode of payment is a matter of internal arrangement regulated by the rules of the club (r). Assignment of contract of sale. — The assignability of contracts of sale has not been much discussed, but presumably the rights and obligations under a contract of sale may be assigned under the like conditions and qualifications as in the case of other contracts (s). If any question of personal skill, confidence or com- petency is involved, the contract is not assignable (t) ; and a contract cannot be assigned when the result of the assignment would be to make the contract more onerous («). Thus where A, a provision merchant, undertakes to supply B, a cake manufacturer, with all the eggs he may require in his business for a year, B undertaking not to buy eggs from any one else, this is a personal contract, and if B assigns his business to a limited eompanyj A is discharged from his obligation («). As the price when payable constitutes a debt, the obligation to pay it may be assigned like any other book debt [y). Three cognate transactions must be distinguished, namely, (1) the assignment of a contract with its reciprocal rights and obligations, (2) the delegation of the performance of a contract, as where a manufacturer supplies articles manuf acured wholly or in part by some one else {z), and (3) novation, as for instance where there is a contract between A and B, and by a tripartite agreement C is substituted for either A or B (a). Conflict of laws. — Sales iu foreign countries are in general regulated by the law of the country where the sale takes place. Subject to certaia qualifica- tions, the rule is that if personal property be disposed of in a manner binding according to the law of the country where it is, that disposition is binding (r) Graff v. Evans (1882), 8 Q. B. D. 373, 378 ; Davies v. Burnett, [1902] 1 K. B. 666 ; cf. Newman v. Jones (1886), 17 Q. B. D. 182 (unauthorised sale by steward to person not a member of club) ; as to status of member of proprietary club, see Baird v. Wells (1890), 44 Ch. D. 661 ; and see further Paterson'a Licensing Acts, ed. 24, p. 667. (s) Cf. Bidden Brothers v. S. Clemens, Horst & Co. (1911), 16 Com. Gas. 8, 12; 1 K. B., [1911] 214, 219 ; and A. C, [1912] 18 (assignment by seller) ; Whiteley v. Hilt, [1918] 2 K. B. 808, at pp. 820, 822, C. A. (hire-purchase agreement). (t) British Wagon Co. v. Lea (1880), 5 Q. B. D. 149, 153. (u) Tolhurst V. Portland Cement Manufacturers, [1901] 2 K. B. 811 ; reversed on an inference of fact, ibid., [1902] 2 K. B. 660, 0. A., see at p. 668 for principles (contract for supply of chalk for SO years), and A. C, [1903] 414, H. L. (x) Kemp V. Baerselman, [1906] 2 K. B. 604, 0. A. ; cf Cooper v. MicklefleU (1912), 107 L. T. 457 (coal supplied on special terms). (y) Cf. Tailhy v. Official Receiver (1888), 13 App. Oas. 523, H. L. ; Bullen and Leake, Free, of Pleading, ed. 6, pp. 88, 586. (2) Cf Johnson y. Bailton (1881), 7 Q. B. D. at p. 447. (a) Cf Jager v. Tohne and Bimge, [1916] 1 K. B. 939, 955, 0, A. 12 THE SALE Oi' GOODS ACT, 1893. everywhere (6). Thus where the master of a ship wrongfully sold the cargo hy auction in Norway, but under such circumstances as to give a good title in Norway, the sale was held vaM, although the cargo subsequently came to England (c) ; and the title to a stolen horse bought in market overt in Ireland, would be recognised in Scotland (d) ; and the validity of a pledge is determined by the law of the country where the goods were pledged (e). Locus regit actum is a rule of wide application. But questions of evidence, e.g. whether the provisions of sect. 4 have been satisfied, belong to the lex fori (/). Stipulations and terms in a contract of sale must be construed according to the lex loci con- tractus which prima facie, but only prima facie, is the law of the place where the contract was entered into (g). In the absence of evidence to the contrary, foreign law is presumed to be the same as English law. If it differs, and the difference is relied on, it must be proved as a question of fact (/i). Capacity of Parties. 2. Capacity to buy and selL — Capacity to buy and sell is regulated by the general law concerning capacity to contract, and to transfer and acquire property. Provided that v?here necessaries are sold and delivered to an infant [or minor] or to a person who by reason of mental incapacity or drunkenness is incompetent to contract, he must pay a reasonable price therefor (i). "Necessaries" in this section mean goods suitable to the condition of life of such infant [or minor] or other person (k), and to his actual requirements at the time of the sale and delivery (I). (6) Embi/ricos v. Anglo-Austrian Bank, [1905] 1 K. B., at p. 683, C. A. ; Dioey's Conflict of Laws, 2nd ed., pp. 519-522. British ships constitute an exception to this rule. (c) Gammel v. Sewell (1860), 29 L. J. Ex. 350, Ex. Oh. ; cf. Alcock v. Smith, [1892] 1 Ch. 238, C. A. (bill of exchange taken in execution abroad). (d) Todd V. Armom (1882), 9 B. 902, Court of Session. (e) City Bank v. Barrow (1880), 5 App. Oas., at p. 677, H. L. (/) Dicey's Conflict of Laws, 2nd ed., 710-712. (g) Be Missouri Steamship Co. (1889), 42 Ch. D. at p. 328, C. A. Cf. Doulton * Co. v. Corporation of Madras, [1920] W. N., p. 221 (goods to be made in England and delivered in India). {h) The Parchim, [1918] A. C. 157, H. L. As to expert evidence to prove the foreign law, see Taylor on Evidence, §§ 1280, 1281. (i) Byder v. Wombwell (1868), L. E. 4 Ex. 32, at p. 38, Ex. Ch. (jewellery). (/c) Ibid.; Peters v. Fleming (1840), 6 M. & W. 42, at p. 46, per Parke, B., and p. 48, per Alderson, B. (I) Barnes v. Toye (1884), 13 Q. B. D. 410 (clothes) ; Johnstone v. Marks (1887), 19 Q. B. D. 509, C. A. (clothes). CAPACITY OF PARTIES (SECT. 2). 13 lUiistraUons. 1. Clothes to the value of £145, including eleven fancy waistcoats, are supplied by a tailor to an infant undergraduate at Cambridge. They are not necessaries, and it is for the plaintifE to show affirmatively that the goods supplied were suitable for the particular infant, and that he was in want of goods of that character at the time of supply (m). 2. A quantity of clover is ordered from an infant trader, and is paid for. If the clover is not delivered, the infant cannot be sued for damages or for money had and received («•). 3. Groods are sold and delivered to an infant who fraudently represents himself to be of age. Some of the goods are necessaries, some not, but the contract is entire. The infant is not liable on the contract or for the conversion of the goods (o). The words " and delivery " at the end of the section were added in Committee, probably to point the distinction between a "bargain and sale " and a " sale and delivery.'' The term " minor " is the Scotch equivalent of our term " infant." Capacity to contract must be distinguished from authority to contract. Capacity means power to bind oneseM ; authority means power to bind another. Capacity is part of the law of status ; authority is part of the law of principal and agent. Capacity is usually a question of law ; authority is usually a question of fact. This section deals only with the question of capacity to buy and sell. As regards authority to buy or sell on behalf of another there appears to be nothing peculiar to the contract of sale, except the provisions of the Factors Acts, post, p. 146. On this subject, therefore, the reader is referred to general works on the law of Agency and Partnership. Sect. 61 (2), post, contains an express saving for the law of principal and agent. The section is probably declaratory. As Cotton, L.J., has pointed out, when necessaries are supplied to a person who is incompetent to contract, the obligations to pay for them arises really quasi ex contractu {p). He cannot bind himseH to pay for them, but it is for his benefit that he shotdd have them, and the law therefore wUl see that a fair price is paid therefor. The obligation to pay arises re and not consensu (q). Lunatic. — As a rule a contract made with an insane person, known to be (to) Nash V. Inman, [1908] 2 K. B. 1, 0. A. (n) Cowern v. Nield, [1912] 2 K. B. 419, as explained in Leslie v. Shiel, [1914] 3 K. B. 607, 0. A. (o) Stocks V. Wilson, [1913] 2 K. B. 235, as explained in Leslie v. Shiel, [1914] 3 K. B. 607, C. A. Qu. as to the power of a court of equity to order restitution if the infant has property ? ibid. (p) Be Bhodes (1890), 44 Ch. D. 94, at pp. 103-107, G. A. (lunatic). (g) The language of this note is approved by Moulton, L.J., in Nash v, Inman, [J.908] 2 K. B., at p. 8, 0. A. 14 THE SALE OF GOODS AGT, X893. insane, cannot be enforced against him ; but his estate is held liable for necessaries supplied to him (r). Drunken man. — A contract made by a drunken man known to be drunk, is, as a rule, voidable ; but as PoUock, C.B., says, a drunkard is liable " when sober, for necessaries supplied to him when drunk " (s). Infant or minor.— By sect. 1 of the Infants Belief Act, 1874 (37 & 38 Vict, c. 62), " all contracts . . . for goods supplied, or to be supplied, other than contracts for necessaries, and all accounts stated with infants shall be absolutely void " (i). The language of that Act is consistent with the view that an infant might be liable on an executory contract to supply him with necessaries, but an infant has never yet been held liable for breach of contract to accept necessaries, or for necessaries bargained and sold, but not delivered. In a case where an infant contracted to go on a billiard tour which involved the supply of necessaries to him, Hamilton, L.J., says he cannot see " why a contract which is in itself binding, because it is a contract for necessaries not qualified by unreasonable- ness, can cease to be binding merely because it is executory " (u). As the law makes the contract for the infant, and for his benefit, he is only liable to pay a reasonable price, and not any price he may have been led to agree to. An infant may marry, so he may make himself liable for necessaries supplied to his family (v). Harried woman. — Under the Married "Women's Property Act, 1882 (45 & 46 Vict. c. 75), as amended by the Married Women's Property Act, 1893 (66 & 57 Vict. c. 63), a married woman has fuU capacity to acquire and dispose of property and to contract. As promisee under a contract she has the same rights as a ma.n, but her liability as promisor is peculiar. She is not personally liable. Her contracts are only enforceable against her in so far as she has separate estate frSe from restraint on anticipation; and if "at the time, of entering into the contract or at any time thereafter she has separate property which she is restrained from anticipating, that property cannot be made avail- able to satisfy any liability arising out of such contract " (w). (r) Be Rhodes (1890), 44 Oh. D. 94, C. A. (necessaries) ; Imp. Loan Co, v. Stone, [1892] 1 Q. B. 599, 0. A. (oontraot). As to determination of agency by lunacy, see ■ Drew v. Nunn^XBI^), i Q. B. D. 661, C. A. As to contracts by lunatics generally, see LoAV Quarterly Beview, 1901, p. 147. (s) Gore v. Gibscm (1845), 13 M. & W., at p. 625 ; cf. West Sam Gua/rdians v. Peerson (1890), 62 L. T. 638 (supply of necessaries to man suflering from delirium tremens). (t) The term " absolutely void " is inapt, because a person of full age is bound by his oontraot with an infant. The effect of the Act is to make an agreement by an infant irrevocably voidable at the option of the infant, even after he attains majority. If an infant buys, uses, and pays for goods, which are not necessaries, he cannot recover the money he has paid, Hamilton v. Vaughan, [1894] 3 Ch., at p. 594. (m) Boberts v. Gray, [1918] 1 K. B. 520, at p. 530, C. A. But note the terms of sect. 2 defining " necessaries." (v) Chappie v. Cooper (1844), 13 M. & W. 252, at p. 259, per Alderson, B. (infant widow liable for husband's funeral expenses). {w) Wood V. Lewis, [1914] 8 K. B. 78, 82, 0. A ; as to the operation and objects of the Act of 1893, see Paqmn, Ltd. v. Beauclerk, [1906] A. C. 148, at p. 163, H. h. As CAPACITY OF PABTIES (SECT. 2). 15 DiTOioed woman. — A woman who is divorced, or who is judicially separated from her husband, is on the same footing as a single woman («). Power of wife to bind. husband. — In certain cases a husband may be liable for necessaries supplied on the order of his wife. When husband and wife are living together the power of the wife to bind her husband is somewhat indefinite. " A married woman," say Mr. Leake, " is presumptively invested with a certain authority to contract as agent for her husband. It is a delegated, not an inherent authority ; the wife can bind her husband only as agent, and a party seeking to charge him with a contract of the wife, 7nust prove the authority. The authority may be referred to two sources : cohabitation, during which the wife is presumptively authorised to manage the domestic affairs of the husband ; and necessity, caused by the husband refusing or failing to maintain his wife " (y). The italicised propositions seem somewhat inconsistent, and there is authority in support of both. The fact that necessaries are supplied on the order of a wife living with her husband does not show joint liability, and proof that a, suitable allowance is made to a wife for household expenses may negative the presumption that she has authority to pledge her husband's credit (z). When a wife is separated from her husband, through his misconduct, and he does not make proper provision for her maintenance, she has, by implication of law, authority to bind him for necessaries (a). The wife of a lunatic has no greater authority to pledge his credit than the wife of a sane man (6). Parent and child. — A father is not liable for necessaries supplied to his infant child without his authority, nor is the mother, though she have separate estate (c). But authority or ratification is inferred on slight evidence (d). Master of ship. — The master of a ship has an impKed authority to bind the owner for the price of necessaries supplied for the ship (e). to debts contracted before marriage, see Jay v. Bobinson (1890), 25 Q. B. D. 467 ; Bobinson v. Lynes, [1894] 2 Q. B. 577. As to continuation of credit to a widow who remarries and gives no notice to the creditor, see Lea Bridge Gas Go. v. Malvem, [1917] 1 K. B. 803. As to a kept mistress, see Byan v. Sams (1848), 17 L. J. Q. B. 271. And see generally Seton on Decrees, ed. 7, pp. 853, 875, and Bullen and Leake, Free, of Pleadings, ed. 6, pp. 185, 193. (x) Matrimonial Causes Act, 1857 (20 & 21 "Vict. a. 85), ss. 21-26 ; Leake on Contracts, ed. 6, p. 405. ■ {y) Leake on Contracts, ed. 6, p. 407 ; cf. Debenham v. Mellon (1880), 6 App. Cas, 24, 35. (z) Morel Brothers v. Westmm-eland, [1903] 1 K. B. 64, C. A. ; affirmed A. C. (1904), 11 H. L. ; French v. Hotoie, [1906] 2 K. B. 674, C. A. (goods ordered by wife, election to proceed against her final) ; Moore v. Flanagan, [1920] 1 K. B. 919, C. A. (election). (a) Bazeley v. Forder (1868), L. B. 3 Q. B. 559 ; Wilson v. Olossop (1888), 20 Q. B. D. 354, C. A. (husband conniving at wife's adultery and then turning her out of doors). (6) Bichardson v. Dubois (1869), L. R. 5 Q. B. 51. (c) Mortimore v. Wright (1846), 6 M. & W. 482, 486 (father) ; Bodgens v. Sodgens (1837), 4 01. & F. 323, 375, H. L. (mother with separate estate). {d) Baker v. Keen (1818), 2 Stark, 501 ; Bazeley v. Forder (1868), L. E. 3 Q. B. 559. (e) Mackintosh v. MitchAson (1849), 4 Exoh. 175. As to the nature of the master's contract when he draws a bill for the price, see The Bipon City, [1897] P. 226, at p: 231. 16 TEE SALE OF GOODS AOT, 1893. Meaning of necessaries. — A somewhat artificial definition of necessaries has been gradually evolved by the cases, and is now embodied in the concluding paragraph of the section. It is for the judge to explain to the jury the legal meaning of necessaries, and for the jury to say whether in' any particular case the goods supplied are necessaries. But it is a question of law for the judge to determine in the first instance whether there is any evidence to go to the jury(/). The law has gradually narrowed the liability of iiafants and other incapacitated persons, so the older cases must be looked at critically in so far as they recognise particular supplies of good as necessaries {g). Since the Act a racing bicycle has been allowed as a necessary for an infant getting 21 shillings a week (?;,), but cartridges, and jewellery for a girl he was courting were held not to be necessaries for an infant with an income of £7 a week (i). As was said long ago, " articles of mere luxury are always excluded, though luxurious articles of utility are sometimes allowed " (Je). Alien enemy. — At common law an alien enemy is a person who carries on business or voluntarily resides in hostile territory. Locality, and not nationality, furnishes the test (I). But by statute enemy status may be imposed on enemy nationals and other persons having hostile associations outside enemy territory, see, e.g. The Trading with the Enemy Act, 1915 (5 & 6 Geo. 5, o. 98). An enemy may be sued, and, as- he may be sued, he may defend and appeal, but as a general rule (except by licence from the Crown) an enemy cannot .suo in a British court or be the acfor in any legal proceeding (m). If an enemy has a right of action which accrued before war, the right is suspended during war, but revives when peace is declared (n). For example, if goods are sold and delivered by a German firm to an English firm before war, no action for the price can be maintained during the war (o). As soon as war is declared aU commerical intercourse with the enemy is prohibited, and if and in so far as any contract is executory, and its due fulfilment would involve inter- course with the enemy, the contract is dissolved. See note to sect. 7, post. (/) Nash V. Inman, [1908] 2 K. B. 1, 0. A. ; cf. Stocks v. Wilson (1913), 2 K. B., at p. 241. (g) See cases collected Laws of England, tit. " Infant," vol. xvii., p. 68. (fe) CVyde Cycle Co. v. Hargreaves (1898), 78 L. T. 296. (i) HewUngs v. Graham (1901), 70 L. J. Ch. 568. (k) Chappie v. Cooper (1844), 13 M. & W., at p. 258. (I) Driefontein Consolidated Mines v. Janson, [1902] A. 0., at p. 405, H. L. ; Porter V. Freudenherg, [1915] 1 K. B. 857, C. A. As to a British registered company under enemy control, whioli gives it enemy status, see The Daimler Co. v. The Continental Tyre Co., [1916] 2 A. G. 387, H. L. (m) Porter v. Freudenherg, [1915] 1 K. B. 857, 0. A. ; Exp. Marum, [1915] 84 L. J. K. B. 1898. But an aliMi enemy may be joined -pro formd as a plaintiff in a partnership action, Rodriguez v. Speyer Brothers, [1919] A. G. 59, H. L. ; and an interned enemy may sue, Sheffenius v. Goldberg, [1916] 1 K. B. 284, C. A. {n) Driefontein Consolidated Mines v. Janson, [1902] A. G., at p. 499 ; Porter v. Freudenherg, [1915] 1 K. B., at p. 873, 0. A. Under the old form of pleading, the plea of " alien enemy " was a plea in abatement and not a plea in bar. (o) Wolf & Sons V. Carr Parke d Co. (1915), 31 T. L, R. 407, G. A. Formalities of the gum tract (sect. 3). 17 Clubs and messes. — A member of a club is not Uable for goods supplied to the club unless lie has expressly or impliedly authorised the supply, and in determin- ing that question the rules of the club are relevant {p). A commanding officer, as such, is not liable for goods ordered by the Mess Committee (j). Registration of business names. — Speaking generally, a person or firm may trade in any name that person or firm likes to adopt. But under the Registra- tion of Business Names Act, 1916 (6 & 7 Geo. 5, c. 58), an individual who carries on business in any name other than his own, and a firm whose firm name does not disclose the names of all the partners, must register the name in which the business is carried on and give the particulars required by the Act. By sect. 8 of the Act, if default is made in complying with the provisions of the Act, the defaulter cannot maintain any action to enforce any contract made or entered into in relation to the business unless the court, for cause shown, grants him relief (r). Formalities of the ■Contract. 3. Contract of sale, how made. — Subject to the provisions of this Act and of any statute in that behalf (s), a contract of sale may be made in writing (either with or without seal), or by word of mouth, or partly in writing and partly by word of mouth {t), or n^ay be implied from the conduct of the parties (m). Provided that nothing in this section shall affect the law relating to corporations. See " writing " defined by sect. 20, of the Interpretation Act, 1889 (52 & 53 Vict. c. 63). A written offer to sell goods may be verbally accepted, and vice versa (x). Where a man goes into a restaurant, orders a dinner and eats it, obrionsly there is a sale though no mention be made of buying, or selling, or (p) Leake on Contracts, ed. 6, p. 380 ; Wertheimer on Clubs, ed. 3, chap. 3. (2) LascelUs v. Bathbun (1919), 35 T. L. B. 347, C. A. ; c/. Cross v. Williams (1842), 31 L. J. Ex. 145 (goods supplied to Volunteer Corps where there was authority). (r) As to the scope of this enactment, see Daniel v. Rogers, [1918] 2 K. B. 225, 0. A. (s) See next section reproducing s. 17 o£ the Statute of Frauds, and see the Merchant Shipping Act, 1894 (57 & 58 Vict. 0. 60, ss. 24, 26, 65, and Sched. I. (A)), transfer of British ships and shares therein by biU of sale only. Cf. Manchester Ship Canal Co. v. Eorloch, [1914] 2 Ch. 179, 0. A. (ship sunk in fairway, sold by harbour authority). (t) Lockett V. Nicklin (1848), 2 Exoh. 93 ; 19 L. J. Ex. 403. {u) Brogden v. Metropolitan By. Co. (1877), 2 App. Cas. 666, H. L. ; cf. Beverley V. Lincoln Gas Co. (1837), 6 A. & B. 829 ; Cornishy. Abington (1859), 28 L. J. Ex. 262. {x) Taylor v. Jmes (1875), 1 C. P. D. 87 (goods ordered by letter and then delivered). As to the construction of such contracts, see Watkins v. Bymill (1878), XO Q. B. D. 178, 188 (sale at horse repository). C.S.G. ^ 18 THE! SALli 01? GOODS AGt, 1893. price. If, however, the parties hare put a contract of sale into writing, the ordinary rules of evidence apply. Parol or oral evidence is inadmissible to contradict the terms of the written instrument; but such evidence is admissible to explain it, and, in explaining it, to annex incidents thereto {y). Oral evidence is of course admissible to avoid a contract, whether in writing or not, as for instance to show that it was induced by fraud, or founded, on such mistake as to prevent what appears to be a contract from ever having been a contract at aU (z), as, for instance, where a purchase is founded on the exhibition by mistake of a wrong sample (a), or where an animal, sold as a heifer, eventually turns out to be an hermaphrodite (6) ; or where, owing to a mislead- ing catalogue, a man purchases Russian tow at an auction believing it to be Russian hemp (c) ; but where a man orders goods, and receives a sold note with- out objection, he is bound by its terms although he has not read them, and the seller did not call his attention to them {d). A written contract may be orally rescinded (e). In some cases by common law, and in others by statute, a corporation can only contract by instrument under seal (/ ). The proviso saves this rule. 4. — (1.) Contract of sale for £10 and upwards. — A contract for the sale of any goods of the value of ten pounds or upwards shall not be enforceable by action unless the buyer shall accept part of the goods so sold, and actually receive the same, or give something in (y) Taylor on Evidence, \\ 1058, 1067 ; Stephen's Law of Evidence, art. 90 ; Bristol Tramways Co. v. Fiat Motor, LW., [1910] 2 K. B., at p. 838, per Farwell, L.J. (extracting contract from long correspondence). As to incidents annexed by usage, see Syers v. Jonas (1848), 2 Exoh. Ill (usage to sell by sample) ; Brown v. Byriie (1854), 8 E. & B. 703 (usage to deduct discount) ; Field v. Lelean (1861), 30 L. J. Ex. 168, Ex. Ch. (usage not to deliver till time of payment arrives) ; Produce Brokers Co. v. Olympia Oil and Cake Co., [1917] 2 K. B. 848, C. A. (appropriation by original seller passed on to second buyer after loss). See further notes to Wigglesworth V. DalUson, 1 Smith, L.C., 11th ed., p. 545. (s) As to fraud, see Chanter v. Hopkins (1838), 4 M. & W., at p. 406 ; Kennedy v. Panama Co. (1867), L. B. 2 Q. B. 580. As to mistake, see Boulton v. Jones (1858), 27 L. J. Ex. 117 (mistake as to person contracted with) ; Baffles v. Wichelhaus (1864), 33 L. J. Ex. 160 (one ship mistaken for another) ; Smith v. Hughes (1871), L. B. 6 Q. B. 597 {old oats asked for, sample of new oats shown). As to mutual assent in general, see Benjamin on Sale, ed. 5, chap, iii, (a) Megaw v. Molloy (1878), 2 Irish L. B. 530, 0. A. (action for non-acoeptance). (6) Gill V. McDowell, [1902] 2 Irish Eep. 463. (c) Scriven Brothers v. Hi/ndley & Co., [1913] 3 K. B. 564. (d) Boe V. Naylor, Ltd., [1917] 1 K. B. 712 ; but see the appeal on the new trial where it appeared that the sold note was obscurely printed and the buyer had defective vision, Boe v. Naylor, Ltd. (1918), 87 L. J. K. B. 958, 0. A. (e) Morris v. Baron & Co., [1918] A. C. 1 H. L. (/) Leake on Contracts, 6th ed., p. 423. But where goods have been supplied to and used by a corporation which can only contract under seal, the goods must be paid for : Nicholsm\. Bradford Union (1866;,.L. E. 1 Q. B. 620 (coals); cf. Lawford V. Billericay District Council, [1903] 1 K. B. 772, 0. A, (work done). FORMALITIES OF THE CONTRACT (SECT. 4). 19 earnest to bind the contract, or in part payment, or unless some note or memorandum in writing {g) of the contract be made and signed by the party to be charged or his agent in that behalf. (2.) The provisions of this sectioii apply to every such contract, • notwithstanding that the goods may be intended to be delivered at some future time, or may not at the time of such contract be actually made, procured,, or provided, or fit or ready for delivery, or some act may be requisite for the making or completing thereof, or rendering the same fit for delivery. I (3.) There is an acceptance of goods within the meaning of this section when the buyer does any act in relation to the goods which recognises a pre-existing contract of sale whether there be an acceptance in performance of the contract or not Qi). (4.) The provisions of this section do not apply to Scotland (i). Illustrations. (1) B verbally agrees to bay certain cabinets, and arranges that a pound, •which, had been overpaid by him on a previous transaction, shall go on account of the cabinets. This is not a part payment within the meaning of sub-sect. (1) (fc). (2) B verbally agrees to buy by sample 20 tons of hay. The hay is delivered at B's wharf, where he inspects and samples it. He rejects it^ saying it is not equal to the original sample. That is a sufficient acceptance under sub- sect. (3)®. (3) B sells to S certain barley lying at a railway station, and directs the railway company to deliver the barley to S. S tries to sell the barley, using a sample given him by B. This is an acceptance by S, and if he subsequently becomes bankrupt, and B, as an unpaid vendor, claims and gets tfie barley back from the railway company, the company is liable in an action for conversion brought by S's trustee (m). (4) Goods ordered by telephone, and cheque for £10 sent by post. In answer to a telephone message a cheque for the balance of £16 is also posted. (g) See " writing " defined by s. 20 of the Interpretation Act, 1889 (52 & 53 Vict. c. 63). (h) Page v. Morgan (1885), 15 Q. B. D. 228, 0. A. ; Allot v, Wolsey, [1895] 2 Q. B. 97, C. A. (taking sample after delivery suffioient). (i) Cf. Bermie v. Moss, [1902] W. N., p. 122, H. L. (fc) Norton v. Davison, [1899] 1 Q. B. 401, C. A. (I) Abbot & Co. V. WoUey, [1895] 2 Q. B. 97, 0. A. (to) Taylor v. O. E. Railway, [1901] 1 K. B. 774. If the statute is not satisfied the contract is " good " but unenforceable, see the consequences worked out at p. 779. 20 THE SALE OF GOODS ACT, 1893. Both cheques are received by the same post, and are at once returned. Thei?e is no part payment, and the buyer cannot enforce the contract (n). (5) A by verbal contract seUs B 3000 bales of jute. A afterwards makes out the contract in the name of S, as seller, signing himself as agent. B returns the conti-act defaced, refusing to buy from S. This is not a sufBcient note to bind A (o). (6) Verbal contract for the sale of goods. The contract extends over more than a year. Part of the goods are delivered and accepted. This is not sufficient, there must be a memorandum in writing which satisfies the 4th section of the Statute of Frauds (29 Car. 2, c. 3) (p). This section reproduces the provisions of the 17th section of the Statute of Frauds (29 Car. 2, c. 3) in relation to the sale of goods. That Act never applied to Scotland, and Scotchmen never appear to have felt the want of it. Its policy has frequently been severely criticised in England (q). It is merely " a weapon of defence, not offence " (r) ; and the defence must be specially pleaded both in the High Court and in the County Court (s). As the section deals with remedies, not rights, it must be regarded as part of the lesefcrri (f) ; and as the note or memorandum is only required to be signed by the party to be charged, it follows that one party may be bound while the other is not (u). The section, it seems, applies to arbitrations («). It does not supersede the 4th section of the Statute of Frauds, which deals with contracts not to be performed within a year, see illustration 6. Statute of Frauds.— Sw6-seci.(l)- reproduces the 17th sect, of the Statute of Frauds (y) in somewhat altered language. The alterations in its language were made (1) to make it harmonise with the language of the rest of the Act ; (2) to give effect to its construction with sect. 7 of the Statute of Frauds Amend- ment Act, 1828 (9 Geo. 4, c. 14), commonly called Lord Tenterden's Act; (3) («) Davis V. Phillips (1908), 24 T. L. B. 4 ; distinguished Parker v. Ci'isp £ Co., [1919] 1 K. B. «1 (cheque retained). (o) Cox V. Hoare (1906), 95 L. T. (N.S.) 121, affirmed (1907), 96 L. T. (N.S.) 719. C. A. Ip) Prested Miners Co. v. Gardner, Ltd., [1910] 2 K. B, 776, affirmed 1 K. B., [1911] 425, C. A. (2) See Law Quarterly Beview, vol, i., p. 1, by Mr. Justice Stephen and Sir P. PoUook. (r) Htissey v. Home Payne (1879), 4 App. Cas. 311. (s) As to High Court, see B. iS. 0., Or. XIX., rule 15 ; Boe v. B. A. Naylor, Ltd. (1918), 87 L. J. K. B. 958, 0. A. (oraJ contract supported, as statute not pleaded) ; as to County Court, see Brutton v. Branson, [1898] 2 Q. B. 219. (t) Lermix v. Brown (1852), 12 0. B. 801 ; Dicey's Conflict of Laws, ed. 2, pp. 710-712 ; Westlake's Private International Law, § 208. , (tt) Cf. Beuss V. Fixley (1866), L. E. 1 Ex. 842, Ex> Ch. {x) Cox V. Hoare (1906), 95 L. T. (N.S.) 121. {y) Printed aa sect. 16 in the Statutes Bevised, and repealed as sect. 16, post, p. 145, FORMALITJES OF THE CONTRACT (SECT. 4). 21 to give efEect to oertain decisions whioh have placed an unexpected interpretation upon some of its terms. The repealed 17th sect, is as follows : — Sect. 17. — "And from and after the said four and twentieth day of June " [1677] no contract for the sale of any goods, wares, and merchandises, for the "price of ten pounds sterling or upwards, shall be allowed to he good, except " the buyer shall accept part of the goods sold, and actually receive the same, " or give something in earnest to bind the bargain, or in part payment, or that " some note or memorandum in writing of the said bargain be made and " signed by the parties to be charged by such contract, or their agents thereunto " lawfully authorised." As regards alterations in language, " value " is substituted for " price " to give efEect to cases which held such was the operation of the construction of Lord Tenterden's Act with the 17th sect. (z). The words " enforceable by action " are substituted for " allowed to be good " to give effect to cases which held that the words in question were the equivalent of "no action shall be brought " in the 4th sect, of the Statute of Frauds, and that they did not make the contract void, but merely unenforceable (a). The word " contract " in line 7 is substituted for the word " bargain " because it is clear since Lord Tenterden's Act that the term " bargain " was equivalent ^o the term " contract " used in the earlier part of the section. The words " party to be charged " are substituted for "parties to be charged" because it had been held that they must be so construed to make the enactment \miform with the 4th sect. (6). The substitution of "his agent" for "their agents" is consequential (c). The word " goods " is substituted for the expression " goods, wares and merchandises," and a definition of goods is given by sect. 62, post, p. 136, and by the same section " action " includes counter-claim and set-off, see post, p. 133, Sub-sect. (2) reproduces the repealed sect. 7 of Lord Tenterden's Act (9 Geo. 4, e. 14) ; the object of which was to make it clear that the Statute of Frauds applied to executory as well as to executed contracts of sale. That section, after reciting the 17th section, and the corresponding Irish provision (which ought to have been repealed), is as follows : — Sect. 7. — " Be it enacted, That the said enactments shall extend to all " contracts for the sale of goods of the value of ten pounds sterling and upwards, " notwithstanding the goods may be intended to be deKvered at some future time, " or may not at the time of such contract be actually made, procured, or provided, " or fit or ready for delivery, or some act may be requisite for the making or " completing thereof or rendering the same fit for delivery." Sub-sect. (3) is necessary to preserve the effect of the decisions reproduced by it, because for other purposes a definition of " acceptance " is given by sect. 35 (2) Harmon v. Beeve (1856), 25 L. J. C. P. 257. (a) Maddison v. Alderson (1883), 8 App. Cas. 467, at p. 488 ; Hugill v. Masker (1889), 22 Q. B. D. 364, at p. 371, 0. A. ; Taylor v. G. E. BaMway, [1901] 2 K. B,, at p. 779. This amendment was made in the Commons Committee. (6) Beuss V. Picksley (1866), L. R. 1 Ex. 342, Ex. Oh. (c) Cf. Graham V. Musson (1839), 5 Bing. N. C. 603, 22 THE SALE OF GOODS ACT, 1893. of the Act, post, p. 90. The sub-sectiou adopts the language of Lord Bowen in Page v. Morgan {d), and seems to dispose of the doubt expressed by Lord Herschell in Taylor v. Smith (e), where he observes that " acceptance is not used in the statute in its common acceptation, and in what precise sense it is used has never been determined." The following points decided on the repealed 17th section would, lit is submitted, hold good on the wording of the present section : — Several articles. — The enactment applies to a single contract for several articles, each of which is priced under £10, if the total value of the articles is £10 or more (/). Acceptance. — The acceptance need not be contemporaneous with the actual receipt. It may precede or follow it {g). The statute requires that the goods or part of them shall be both accepted and actually received. The two questions, though distinct, are frequently confused in the cases. Actual receipt. — Where acceptance is shown a very liberal construction has been put upon the term " actual receipt." If the seller attorns to the buyer and holds the goods as his bailee (Ji), or if the goods are in the possession of a third person who attorns to the buyer, the statute is satisfied (i). A carrier is prima fade the buyer's agent to actually receive the goods though he is not his agent to accept them (Je). Part of the goods. — The acceptance and receipt of a bulk sample may satisfy the statute Q), and so may the acceptance and receipt of a portion of the goods while the rest are still unmade (m). Where growing timber is sold under a verbal" contract, and the buyer fells some of the trees, that is a sufficient aoceptaJice and receipt to satisfy the statute (»). {d) Page v. Morgan (1885), 15 Q. B. D. 228, at p. 233, C. A. (e) Taylor v. Smith, [1893] 2 Q. B. 6S, at p. 71, 0. A. See per Lord Esher, Abbot v. Wolsey, [1895] 2 Q. B., at p. 100. (/) Baldey v. Parker (1823), 2 B. & 0. 37. (g) As to acceptance before receipt, see Gusack v. BoHnson (1861), 80 L. J. Q. B. 261 ; as to acceptance inferred from conduct after receipt, see Chaplin v. Bogers (1800), 1 East, 192 ; Edan v. DudfielA (1841), 1 Q. B. 302 ; Beaumont v. Brengeri (1847), 5 C. B. 301; Parker v. WalUs (1855), 5 E. & B. 21; cf. Meredith v. Meigh (1853), 22 L. J. Q. B. 401 ; Smith v. Hudson (1865), 34 L. J. Q. B. 145. See, too, Law Quarterly Beview, vol. i., pp. 15, 16. (h) Elmore v. Stone (1809), 1 Taunt. 458 ; Marvin v. Wallace (1856), 25 L. J. Q. B. 369 ; Castle v. Sworder (1861), 80 L. J. Ex. 310, Ex. Oh. (i) LaiU Qua/rterly Beview, vol. i., p. 12; cf. Godts v. Bose (1855), 17 C. B. 229, at p. 235. (k) Hanson v. Arndtage (1822), 5 B. & Aid. 557 ; Norman v. Phillips (1845), 14 M. & W. 277 ; cf. Smith v. Hudson (1865), 34 L. J. Q. B. 145. (I) Hinde v. Whitehouse (1866), 7 East, 558; Gardner v. Grout (1857), 2 C. B. (N.S.) 340. (m) Scott V. Eastern Counties Bailway (1843), 12 M. & W. 33. (n) Marshall v. Green (1&15), 1 0. P. D. 35. FOBMALITIES OF THE CONTRACT (SECT. 4). 23 Earnest, — Earnest consists of any coin or thing of value given ia token of the bargain, but which is not, as a rule, part of the price (o). Part payment. — An agreement to set-ofO a claim of the buyer against part of the price inay amount to part payment (p). Note or memorandum. — The note or memorandum must designate the parties by name or description (3), the goods sold (r), the price if agreed on (s), and must show directly or by implication the nature of the promise of the party to be ohai'ged {t). Oral evidence is not usually admissible to connect documents together to make up a memorandum {u). But an envelope may be read with the letter contained in it, and an agreement referred to in a document may be iden4;ified by parol evidenc6-(a;). The note or memorandum need not be contemporaneous with the contract ; but it must be in existence before action brought {y). It may be addressed to a third party (z), or may be contained ia the minutes of a meeting (a). It may consist of a written proposal which is verbaUy accepted (6), or of a letter recognising the contract, but repudiating liability under it (c). Signature. — Signature is the writing of a person's name on a document for the purpose of authenticating it. If the name appears in an unusual place it is a question of fact whether it was intended as a signatui-e (d). Signature by mark, initials, or stamp is sufficient (e). The signature to a telegram form suffices (/) ; so too does the signature of an agent in his own name, for then (o) As to earnest and its history, see Howe v. Smith (188i), 27 Oh. D., at pp. 101, 102, per Fry, L.J. (^) Walker v. Nussey (1847), 16 M. & W. 302, at p. 305 ; Benjamin on- Sale, 5th ed., p. 226. (g) Blackburn on Sale, p. 55 ; Vandenbergh v. Sjpooner (1866), L. E. 1 Ex. 316 ; Newell v. Badford (1867), L. E. 3 C. P. 52 ; and see illustrations 1 and 4, ante, p. 19. (r) Thornton v. Kempster (1814), 5 Taunt. 786; Shardlow v. Cotterell (1881), 20 Ch. D. 20, at p. 97, per Lush, L.J. (s) Elmore v. Kingscote (1826), 5 B. & C. 583 ; aliter, if the contract be for an implied reasonable price, Hoadly v. M'Laine (1834), 10 Bing. 482. («) Egerton v. Matthews (1805), 6 East, 307 ; Peirce v. Corf (1874), L. E. 9 Q. B. 210 ; Law Quarterly Review, vol. i., p. 20. («) Taylor Y. Smith, [1893] 2 Q. B. 65, 0. A. (invoice, advice note, and letter). (x) Pearce v. Gardner, [1897] 1 Q. B. 688, 691, 0. A. Cf. Last v. Euchlesby, [1914] W. N., p. 157 (secondary evidence of lost envelope). (y) Lucas v. Dixon (1889), 22 Q. B. D. 357, 0. A. (z) Gibson v. Holland (1865), L. E. 1 0. P. 1. (a) Jones v. Victoria Dock Co. (1877), 2 Q. B. D. 314 (on sect. 4). (6) Beuss V. Picksley (1866), L. E. 1 Ex. 842, Ex. Oh. (c) Bailey v. Sweeting (1861), 30 L. J. 0. P. 150; Wilkinson v. Evans (1866), L. E. 1 0. P., at p. 411 ; TUrkell v. CamU, [1919] 2 K. B. 590, 0. A. (d) Johnson v. Dodgson (1837), 2 M. & W. 653, at p. 659 ; Caton v. Caton (1867), L. E. 2 H. L. 127. (e) Benjamin on Sale, 5th ed., p. 270. (/) Godwin V. Francis (1870), L, E, 5 0. P, 295, 24 THE SALE OF GOODS ACT, 1S98. evidence is admissible to charge the 'principal though not to discharge the agent {g). Agents to Bign. — The authority of the agent is to be determined according to the ordinary rules of agency; but it seems that one party cannot be' the agent of the other to sign for him {h). A letter written by an agent which refers to and recognises an unsigned document containing the terms of the contract, may satisfy the statute (i). It is obvious that a person may be an agent to sign, though he may not have authority to settle the terms of the contract between the parties. The two questioijs are distinct. Auctioneer. — An auctioneer though employed by the seller is an agent to sign for the buyer, as well as the seller, at an auction (h) ; but his clerk, unless specially authorised, it seems, is not (I). When an auctioneer sells by private contract he is agent for the seller only (m). Broker — A broker is an agent to sign for both seller and buyer. If he duly enters- the contract in his book and signs it, the statute is satisfied (to). So again, if bought and sold notes, which correspond, are signed by the broker and delivered to the parties, that is siifS^oient (o), and it seems that either the bought or sold note is sufBcient to charge either party, for buying implies a sale, and selling implies a purchase, but if only one note is produced evidence would be admissible to prove a variance (p). This point, however, is not clear. Bescission or variation. — ^A contract of sale in writing, or of which there is a memorandum in writing, may be oraUy rescinded (q), but any subsequent variation of the contract, so as to ci'eate in contemplation of law a new contract, must be in writing (r) ; for example, a parol agreement to extend the time for {g) White v. Proctor (1811), 4 Taunt. 209 ; ef. Newell v. Badford (1867), L. R. 3 C. P. 52. (h) Sharman v. Brandt (1871), L. R. 6 Q. B. 720, Ex. Gh. ; ef. Farebrother v. Simmms (1822), 5 B. & Aid. 333 ; cf. Laws of England, vol. xxv., p. 138. (i) John Griffiths Cycle Go. v. Humber & Go., [1899] 2 Q. B. ili, 0. A. (reversed on another point, [1901] W. N., p. 110, H. L.), decided on s. 4. But cf. Thirkell v. Cambi, [1919] 2 K. B. 590, 0. A. (solicitor's letter). {k) White V. Proctor (1811), 4 Taunt. 209. As to his duty to make a written memorandum, see McManus v. Fortescue, [1907] 2 K. B. at p. 4, C. A. (I) Peirce v. Corf (1874), L. R. 9 Q. B. 210 ; but see contra, Sims v. Landray, [1894] 2 Oh. 318. (m) Mews v. Ca/rr (1856), 26 L. J. Ex. 89. (n) Thompson v. Gardiner (1876), 1 0. P. D. 777 ; Laws of England, vol. xxv., p. 138. (o) Sievewright v. Archibald (1851), 17 Q. B. 103 ; 20 L. J. Q. B. 529, where the notes varied, and the variance was held fatal, there being no signed contract. (p) Pa/rton v. Grofts (1864), 33 L. J. C. P. 189 ; Thompson v. Gardiner (1876), 1 C. P. D. 777. (g) Qoss v. Lord Nugent (1833), 5 B. & Ad. 58, at pp. 65, 66 ; Morris v. Baron & Co., [1918] A. 0. 1 H. L. ; cf Morgan v. Bain (1874), L. R. 10 G. P. 15. (r) Plevins v. Dovming (1876), 1 C. P. D. 220 ; but cf. Morrell v. Studd, [1913] § Qh. §48 ; an4 Hartley v. Hymans, [1920] W. N, P- 274, SUBJMQT-MATTER OF CONTRACT (SECT, 5). 25 performing a contract in writing- does not effect the contract, and cannot be , substituted for it (s). The acceptance of a substituted mode of performance (f) or a mere forbeai'ance to make op require delivery at the request of the other party does not constitute a variation of the contract (u). Oaarantee. — A guarantee for the price of goods sold falls within sect. 4 of the Statute of Frauds, and not within this section (a;). Subject-matter of Contract. 5. — (1.) Existing or future goods. — The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or goods to be manufactured or acquired by the seller after tbe making of the contract of sale, in this Act called " future goods " {y). (2.) There may be a contract for the sale of goods, the acquisition of which by the seller depends upon a contingency which may or may not happen (2) . (3.) Where by a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods {a). See the terms " contract of sale," " future goods," " goods," and " specific goods " defined by sect. 62. Sub-sect. (1). The Koman lawyers doubted whether an agreement to sell "future goods " constituted a contract of sale, but it is long since any such question has been raised in English law (&). The term " future goods " is not (s) Noble V. Ward (1867), L. B. 2 Ex. 135, Ex. Oh. ; distinguished Morris v. Baron S Co., [1918] A'. C. 1 H. L. (t) Leather Cloth Co. v. Hieronimus (1875), L. R. 10 Q. B. 140 (change of route). (u) Ogle V. Earl Vane (1868), L. R. 3 Q. B. 272, Ex. Oh. ; Sickman v. Haynes (1875), L. B. 10 0. P. 598, reviewing the previous cases ; cf. Tyers v. Bosedale Co, (1875), L. B. 10 Ex. 195, Ex. Oh. (x) Davys v. Buswell, [1913] 2 K. B. 47. (y) Watts V. Friend (1830), 10 B. & 0. 446 (crop not yet sown) ; Hibbleiohite v. M'Morine (1889), 5 M. & W. 452 (goods which seller can only acquire by purchase) ; Ajello V. Worsley, [1898] 1 Oh. 274 (piano of a rival maker not yet purchased) ; Pothier, Contrat de Vente, No. 5. (z) Pothier, Contrat de Vente, Nos. 6-9; cf. Watts v. Friend (1830), 10 B. & 0.446 (crop not yet sown) ; Male v. Bawson (1858), 27 L. J. 0. P. 189 (goods to arrive by ship) ; Langton v. Eiggins (1859), 28 L. J. Ex. 252 (proceeds of future crop), (a) Lunn v. Thornton (1845), 1 0. B. 379 ; 14 L, J. 0. P, 161 (trover for furniture) ; cf. Heseltme v, Siggers (1848), 1 Exoh. 856 ("bought and sold " in relation to stock may mean agreed to be bought or sold). (6) Moyle's Sale m the Civil Law, p. 29; Hibblewhite v. M-Morine (1839), 5 M. & W. at 466. Sect. 7 of Lord T^nterdep's Act (9 Geo, 4, 0, 14), at any rat^, concluded th@ questiop in iSngland. 26 THE SALE OF GOODS ACT, 1893, a very happy one, but the alternative " after-to-be-aequired goods" was impossible. Sub-sect. (2), " Une simple esperance," say Pothier, " pent memo etre I'objet d'un oontrat de vente ; e'est pourquoi, si on vend' h, quelqu'un son coup de filet pour un certain prist, o'est un vrai oontrat de vente " (c). There is very little English authority on the point. " No doubt," says Martin, B,, " a man may buy the chance of obtaining goods," but he then goes on to say that in the case he was dealing with the plaintiff bought the goods themselves {d). Perhaps the doubtful case of Bagueley v. Sawley may be explained on the ground that the plaintifE there bought another man's bargain at an auction for what it was worth, and not the goods themselves (e). Emptio gpei. — The purchase of a chance was known in the Civil Law as emptio spei. " If the intention of the parties is that the purchase-money shaU be paid in any case, whether the hoped-for equivalent comes to anything or not, it is commonly called, for the sake of distinction, emptio spei simplids. If it is, that it shall not be paid unless something at any rate is forthcoming, or shall only be paid in proportion to what the purchaser actually gets, it is termed emptio rei speratx '' (/). Sub-seet. (3). — Agsignment of after-acquired property, — The conditions under which an ordinary agreement to sell becomes a sale are dealt with in sect. 1, and sects. 16-20, pod. But sometimes a contract purports presently to assign goods to be acquired in the future (g). In such case the legal property in the goods does not pass to the buyer unless and until the seller does some act irrevocably appropriating them to the contract (h), or the buyer takes possession of them under a licence to seize, which is equivalent to a delivery by the seller (i). But if the goods be sufficiently described to be identified on acquisition by the seller, the equitable iuterest in them passes to the buyer as soon as they are acquired (h) : " A man cannot in equity, any more than at law, assign what has no existence. A man can contract to assign property which is to come into existence in the future, and when it has come into existence equity, treating as done that which ought to be done, fastens upon that property, and the contract to assign thus becomes a complete assignment " (Z). It is only (c) Pothier, Contrat de Vente, No. 6. (d) Buddie v. Green (18S7), 27 L. J. Ex. at p. Si (goods in hands of wharfinger). Cf. Hitchcock V. Oiddings (1817), Daniell 1, at p. Y ; Hanks v. Palling (1856), 6 E. & B. at p. 669. (e) Bagueley v. Hawley (1867), L. B. 2 0. P. 625 (second-hand boiler) ; see, too, Chapman v. Speller (1850), 14 Q. B. 621 (sale by sherifi and sub-sale), (/) Moyle'a Sale in the Civil Law, p. 80. (g) See such a contract distinguished from an agreement to sell plus a licence to seize, Reeves v. Whitmore (1864), 88 L. 3. Ch. 63. (h) Langton v. Higgins (1859), 28 L. J. Ex. 252 (sale of future crop). (i) Congreve v. Evetts (1854), 10 Exch. 298 ; 23 L. J. Ex. 273 ; Hope v. Hayley (1856), 25 L. J. Q. B. 155. (k) Sohoyd v. Marshall (1862), 10 H. of L. Caa. 191 ; 83 L. 7. Ch. 193 ; cf. Tailby V. Official Receiver (1888), 13 App. Cag. p.-546. (Z) Collyer v. Isaacs (1881), 19 Ch. T>. 342 ; see at pp. 351, 354, 0. A. SUBJEGT-MATTEJt OF CON TRAGI (SECT. 6), 27 the equitable interest whicli passes to the buyer by the contract, hence his rights are liable to be defeated, if, before he gets the legal property in the goods, the seller disposes of them to a second purchaser without notice, who thus first obtains the legal estate (m). There was one case in which it was supposed at common law that future goods oould be assigned. It was said that a man might seU future goods which had a " potential existence," and that then the legal property in them would pass to the buyer as soon as they came into actual existence. Goods were supposed to have a potential existence if they would naturally grow out of any- thing already owned by the seller. For instance, it was said a man might seU the wool to be grown on sheep which he then had, but not the wool on sheep which he was going to buy in). But there seems to be no rational distinction between one class of future goods and another, and the sub-section may therefore be regarded as declaratory (o). 6. Goods which have perished. — Where there is a contract for the sale of specific goods, and the goods without the knowledge of the seller have perished at the time when the contract was made, the contract is void (jj). By sect. 62, ^ost, p. 140, unless the context or subject-matter otherwise requires, '• specflc goods," means goods identified and agreed upon at the time a . contract of sale is made ; and " contract of sale " includes an agreement to sell as weU as a sale. Note sect. 55, ;poit, as to express agreement or usage. The rule in this section may be based either on the ground of mutual mistake, or on the ground of impossibility of performance. It is confined to the case of specific goods. Generic goods, that is to say, goods defined by descrip- tion only, come within the maxim genus numquam perit. As, in the case contemplated by this section, the contract is void, the price, if paid, can be recovered back (5). (to) Joseph V. Lyons (188i), 15 Q. B. D. 280, C. A. ; Hallas v. Robinson (1885), 15 Q. B. D. 288, C. A. (bill of sale cases). {n) Grantham v. Hawley (1603), Hobart Eep. 132, 2 EoU. 48, pi. 20. This was the emptio rei speratce of the Eoman lawyers. (0) See, however. Laws of England, vol. xxv., p. 171. It might possibly be con- tended that goods having a potential existence do not come within the definition of " future goods," inasmuch as they accrue to the seller, and are not " acquired by " him. (p) Couturier v. Hastie (1856), 5 H. of L. Cas. 673 ; 25 L. 3. Ex. 253 (cargo of corn) ; cf. Clifford v. Watts (1870), L. E. 5 C. P. 577 (covenant in mining lease) ; Smith V. Myers (1870), L. E. 5 Q. B. 429, in Ex. Ch. L. E. 7 Q. B. 139 (cargo " expected to arrive " by particular ship) ; Pothier, Contrat de Yente, No. 4 ; French Civil Code, art. 1601 ; Moyle's Sale in the Civil Law, p. 21 ; Story on Sale, J 149. Cf. Scott V. Coulson, [1908] 2 Oh. 249, C. A. (sale of life policy after death of assured). (2) Strickland v. Turner (1852), 7 Exch. 208 (annuity). 28 THE SALE OF QOODS ACT, 1893. Art. 1601 of the French Civil Code provides that, in case of partial loss, the buyer may either rescind the contract or have the price reduced by valuation. English law recognises no such rule. The only question is whether the article has been so far destroyed as no longer to answer to the description of it given by the contract (r). Thus where a specific cargo of corn was sold at sea, and it turned out after- wards that before the sale the ship had stranded and the corn had been so damaged as not to answer to its description under the contract, the sale was held •to be void (s). But if a man contracts to sell five dozen of a particular brand of champagne, it would be immaterial if unknown to him his whole stock of wine had been destroyed by fire. He must procure five dozen of that champagne elsewhere or pay damages. A mixed case might arise which is not covered by the section. Suppose a man contracts to sell to B " five dozen of the '74 champagne now in my cellar," not knowing that all but three dozen had been destroyed by fire. The question has not been decided, but probably the contract tvould be void. The provisions of this section, like any other implica- tion of law, may be negatived or varied by express-agreement, or by the usage of a particular trade, see sect. 55 post. For example, the section does not apply to a c.i.f . contract, which is a contract for the sale of insured goods, lost or not lost(<). 7. Goods perishing before sale but after agreement to sell. — Where there is an agreement to sell specific goods, and subsequently the. goods, without any fault on the part of the seller or buyer, perish before the risk passes to the buyer, the agreement is thereby avoided (m). • See " specific goods " defined by sect. 62, post, p. 140. The definition is only a prima facie definition. See " fault " defined, post, p. 136, and see sect. 55, post, as to express agreement or usage. It is to be noted that the rule applies to specificaUy described goods, whether in existence at the time the contract was made or not. In a case where there was a contract to supply 200 tons of potatoes to be grown on a particular farm, (r) Barr v. Oibson (1838), 3 M. & W. 390 (stranded ship). Of. the definition of actual total loss given by sect. 57 of the Marine Insurance Act, 1906 (6 Edw. 7, o. 41). (s) Couturier v. Hasti^ (1856), 5 H. of L. Oas. 673 ; 25 L. J. Ex. 253. {t) Cf. Mtmbre Saccharine Co. v. Corn Prodiicts Co., [1919] 1 K. B. 198. As to trade usage, or agreement, see Produce Brokers Co. v. Olympia Oil and Cake Co. (1915), 21 Com. Oas. 820, C. A. and H. L. ; 1 A. C, [1916] 314 (re-sale of goods at sea, the buyer agreeing to accept the appropriation made by the original seller) ; and Produce Brokers Co. v. Olynipia Oil and Cake Co., [1917] 1 K. B. 320, 330, 0. A. (6th case). (m) Eouielt V. Couplamd (1874), L. R. 9 Q. B. 462, at p. 465, per Blackburn, J., and in C. A. (1876), 1 Q. B. D. 258, at p. 262, per Hellish, L.J. ; cf. Taylor^v. Caldwell (1863), 3 B, & S. at p. 834 ; Appleby v. Myers (1867), L. R. 2 C. P. 651 ; ElpUck v, Barnes (1880), 5 Q. V. D. 321 (death o£ a horse delivered, on " sal§ or return"). SVBJEOT-MATTEB OF OONTBAOT (SECT. 7). 29 and the crops failed, Mellish, L.J., said : " This is not like the case of a contract to deliver so many goods of a particular kind, where not specific goods are to be sold. Here there was an agreement to seU and buy 200 tons out of a crop to be grown on specific land, so that it is an agreement to sell what will be, and may be called specific things ; therefore neither party is liable if the performance becomes impossible " (sb). By special agreement goods may be at the buyer's risk before he acquires the property in them. See sect. 20, post, as to incidence of risk. Impossibility or supervening illegality. — Sections 6 and 7 deal with two cases of impossibility peculiar to the law of sale. There are other cases, common to the whole field of contract, where performance is excused on the ground of impossibility {y). As a general rule, if a man makes a contract he must fulfil its conditions or pay damages. It is no excuse that he cannot get the goods he has contracted to deliver, or that he can only obtain them at a prohibitive price («). If he wishes to be safe he must protect himself by express stipulation (a). But there are cases of vis major independent of any particular contract, which excuse performance. For example, if the goods which a man has con- tracted to sell are requisitioned by the G-overnment before delivery he is absolved from his obligation to deliver them (fc). Again, if a contract, legal in its inception, is prohibited by or under an Act of Parliament before its fulfilment, the obligation is dissolved (c). A declaration of war by this country operates as an Act of Parliament prohibiting aU inter- course with the enemy. If a contract made before war involves intercourse (x) Bowell V. Goupland (1874), L. R. 9 Q. B. 462, at p. 465, per Blackburn, J., and in C. A. (1876), 1 Q. B. D. 258, at p. 262, per Mellish, L.J. ; Jackson v. Union Marine Insurance Co. (1874), L. E. 10 0. P., at p. 145 ; see, too, NickoU v. Ashton, [1900] 2 Q. B. 298, as to implied condition in case of impossibility of performance, and for general canon, see- Chandler v. Webster, [1904] 1 K. B. 493, 0. A. (seat to see Coronation). (y) See Pollock on Contracts, chap. viii. (impossibility). . {z) Sale V. Bawson (1858), 27 L. J. 0. P. 189, 191 ; Re Weis <& Co., [1916] 1 K. B. 346 ; Blackburn Bobbin Co. v. Allen S Sons, Ltd., [1918] 2 K. B. 467, G. A. ; Pro'dicce Brokers Co. v. Weis d Co. (1918), 87 L. J. K. B. 472. (a) New Zealand Shipping Co. v. Societe des Ateliers de France, [1919] A. 0. 1 H. Ij. ; cf. Matsoukis v. Priestman, [1915] 1 K. B. 681 (strike clause in contract for ship) ; Tenants (Lancashire), Ltd. v. Wilson £ Co., [1917] A. 0. 496, at p. 510, per Lord Loreburn ; Peter Dixon & Sons v. Henderson d Co. (1918), 23 Com. Cas. 294, C. A. (suspension of delivery if " hindered " by war, etc.) ; Clarh v. Cox, McEwen & Co. (1919), 25 Com. Cas. 94, C. A. (contract to be cancelled if vessel lost before declaration of shipment) ; Be Comtoir Commercial Anversois, [1920] 1 K. B. 868, C. A. (sale of exchange prevented by war). (6) Be Shipton Anderson & Co., [1915] 3 K. B. 676; Bale Steamship Co. v. Northern Steamship Co. (1918), 62 S. J. 328, C. A.; cf. Bank Line v. CapeldCo., [1919] A. C. 435 (requisition of ship, frustration of charterparty). But as to a temporary embargo on export, see Millar & Co. v. Taylor & Co., [1916] 1 K. B. 402, C. A. (c) Metropolitan Water Board v. Dick Kerr& Co., [1918] A. C. 119 H. L. (building contract). 30 THE SALE OF GOODS ACT, 1893. with the enemy for its due performance, the' contract is dissolvedj and a clause purporting to suspend its operation during war is null and void (d). Continental lawyers recognise force 'majeure as excusing the performance of a contract on the principle of act of state. But English judges for the most part rest the defence of vis major on the fiction of an implied condition forming the basis of the conteact between the parties (e). As to who is an alien enemy, see ante, p. 16. The Price. 8. — (1.) Ascertainment of price. — The price in a contract of sale may be fixed by the contract, or may be left to be fixed in manner thereby agreed, or may be determined by the course of dealing between the parties (/). (2.) Where the price is not determined in accordance with the foregoing provisions the buyer must pay a reasonable price (gr). What is a reasonable price is a question of fact dependent on the circumstances of each particular case (h). ' This section and the next deal with the question fixing the price. As to payment or tenders of the price, and actions therefore in case of non-payment, see sect. 49 and notes, poet. The " price " of a thing is its agreed or estimated value expressed in terms of the currency of the country. " The technical term which has been invariably adopted for the numerical expression of the values of commodities, in terms of the standard, is ' price ' " («'). An alternative price, if in the nature of a wager, avoids the contract (Jc). (d) Mtcl Bieber & Co. v. Rio Tinto Co., [1918] A. 0. 260 H. L. ; Naylor Benson £ Co. V. Kreiniache Industrie Oesellschaft, [1918] 2 K. B. 486, 0. A. As to c.i.f. contracts, see Karhurg (Arnhold) v. Oreen Blythe <& Co., [1916] 1 K. B. 495 ; 21 Com. Gas. 174, C. A. ; Krupp v. Orconera Iron Ore Co., [1919] W. N. 50, H. L. (e) See the authorities collected in Blackburn Bobbin Co. v. Allm, and Sons, [1918] 1 K. B. 540. (/) As to usage to deduct discount, see Browne v. Byrne (1854), 3 E. & B. 703. See note, 'post, p. 31, as to maximum prices. (g) Acebal v. Levy (1834), 10 Bing. 376 ; Soadly v. M'Laine (1834), 10 Bing. 482 ; ralpy V. Gibson (1847), 4 G. B. 837, 864. (h) Acebal v. Levy (1834), 10 Bing. 376, at p. 383, per Tindal, C.J. Such price may or may not be the market price, acoording'to circumstances. (i) Scott's Money and Banking, p. 34. As to legal tender, see post, p. 112. (k) Bourke v. Short (1856), 25 L. J. Q. B. 196; cf. Brogden v. Marriott (1846), 8 Bing. N. G. 88 ; and cases cited in Carlill v. Carbolic Co., [1892] 2 Q. B. at p. 486. As to speculative contracts in " futures " seeForgetY. Osligny, [1895] A. C. at p. 323 ; and Be Giebe, [1899] 1 Q. B. 794, C. A. (wagering contract plus contract for sale of stock). THE PBlGE (SECT. 8). 31 " Groods may be sold," says Wilde, C.J., "and frequently are sold, when it IS the intention of the parties to bind themselves by h contract which does not specify the price or mode of payment, leaving them to be settled by some future agreement, or to be determined by what is. reasonable under the ciroum- stajices " (I). The clause originally provided that the price might " be left to be fixed by subsequent arrangement"; but these words were struck out in Committee. Presumably if the price was subsequently fixed by the parties, the Court would hold that it was a resonable price. Marine policies are often affected " at a premium to be ariranged " (to). The same question arises there. A case that is not expressly covered by the above rules is put by Blackburn, J., who says : " When the price is not ascertained, and it could not be ascertained with precision in consequence of the thing perishing, nevertheless the seller may recover the price, if the risk is clearly thrown on the purchaser by ascertaining the amount as nearly as you can " {n). Perhaps, however, the case falls within the rule of reasonable price. The doctrine of implied or reasonable price seems to be an original develop- ment of English law. The rule of Roman law was that the price, or the mode of fixing it, must be expressed in the contract itself. Pretium, auteiin, constitui opoHet, nam nulla emptio sine pretio esse protest ; sed et certum pretiwm esse debet (o). If the price was not fixed, the contract was classed as innominate. Deposit. — Sometimes part of the price is prepaid by way of security, when the contract is entered into. The money so prepaid is called a deposit. The return of the deposit in case the sale goes off is usually a matter of agreement, but in the absence of a different agreement the deposit is forfeited if the sale goes off through the buyer's fault (p). " The deposit," says Lord Macnaghten, " serves two purposes, if the purchase is carried out it goes against the purchase- money ; but its primary purpose is this, it is a guarantee that the purchaser means business " (g). Under-Belling. — A man may, of course, sell at any price he likes (r), and to undersell trade rivals he may offer certain goods at a loss (s) ; so too, a man may (0 Valpy v. Gibson (1847), 4 C. B., at p. 864 ; Joyce v. Swan (1864), 17 C. B. (N.S.), at p. 93. (m) See Marine Insurance Act, 1906 (6 Edw. 7, c. 41), s. 31. (n) Ma/rtineau v. KitcMng (1872), L. R. 7 Q. B. at pp. 455, 456 (sugar shipped at owner's risk at so much per cwt. and destroyed before it could be weighed). Cf. Castle V. PUyford (1872), L. E. 7 Ex. at pp. 99, 100. (o) Inst, lib. iii. tit. 23 ; Moyle's Sale in the Civil Law, pp. 68, 69. To like efieet, Ppthier, Contrat de Vente, No, '23 ; French Civil Code, arts. 1592, 1593. (p) Howe V. Smith (1884), 27 Oh. D. 87, 0. A. See the history of the law of earnest and deposit traced by Fry, L. J., at p. 94. (q) Soper V. Arnold (1887), 14 App. Oas., at p. 435. (r) A temporary abrogation of freedom of contract in fixing prices is furnished by the Profiteering Act, 1919 (9 & 10 Geo. 5, c. 66), and the action of the Food Controller, under his statutory powers, in fixing prices. (s) Ajello V. WorsUy, [1898] 1 Oh. 274, 280. For a hybrid contract between sale and agency, see The Kronprincessin Cecilie (1917), 33 T. L. B, 292, P. C. 32 tHE SALE OF GOODS ACT, 1893. sell goods to a retailer with a condition that they shall not be retailed tinder certain specifled prices (<). But that condition is not binding on subsequent buyers, even with notice (u), except perhaps in the case of patented goods sold under a restrictive licence (a). Alteration of customs or excise duties. — Unless otherwise agreed, where, after the making of the contract and before the delivery of the goods, a new or increased customs or excise duty is imposed, the amount may be added to the price, and, conversely, where the duty is repealed or lowered, the amount may be deducted from the price. In case of disagreement as to the amount it may be fixed by the Commissioners and Excise, see post, p. 170. Del credere agent. — A del credere agent guarantees his principal's ability to pay the price, but he does not undertake that his principal shall be ready to pay without raising objection to the seller's performance of the contract {y). 9. — (1.) Agreement to sell at valuation. — Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of a third party, and such third party cannot or does not make such valuation, the agreement is avoided {z) ; provided that if the goods or any part thereof have been delivered to and appropriated by the buyer he must pay a reasonable price therefor (a). (2.) Where such third party is prevented from making the valuation by the fault of the seller or buyer, the party not in fault may maintain an action for damages against the party in fault (b). In a case where one of the parties prevented the valuer from acting. Page Wood, V.C., refused specific performance, apparently on the ground that there was no complete contract, saying that the Court had adopted this principle from the Civil Law (c). See Inst., lib. iii. tit. 23, where it is said : " Sin autem (t) Ellman v. Garrvngton, [1901] 2 Ch. 275 (embrocation). \u) Taddy & Co. v. Sterious & Co., [1904] 1 Ch. 35i (tobacco) ; McGrutherv. Pitcher, [1904] 2 Ch. 306, C. A. (rubber heel pads) ; Dunlop Pneumatic Tyre Co. V. Selfridge & Co., [1915] A. C. 847, H. L., where at p. 852, Haldane, L.C., says, "our law knows nothing of a. jus gumsitum tertio arising by way of contract." {x) National Phonograph Co. of Australia v. Menck, [1911] A. 0. 336, 347, P. C. ; Colwnbia Phonograph Co. v. Regent Fittings Co. (1913), 30 B. P. C. {y) Gabriel {Thomas) and Sons v. Churchill, [1914] 3 K. B. 1272, 0. A. {z} Thurnell v. Balbirnie (1897), 2 M. & W. 786 (damages) ; Vickers v. Viokers (1867), L. R. 4 Ec[. 529 (specific performance) ; Benjamin on Sale, 4th ed., p. 90. (a) Clarke v. Westrope (1856), 25 L. J. 0. P. 287. i (6) Cf. Thmnas v. Fredericks (1847), 10 Q. B. 775, and Smith v. Peters (18t5), L. B. 20 Eq. 511 (mandatory order). See " fault " defined by sect 62. (c) Vickere v. Vickers (1867), L. B. 4 Eq. 529, at p. 535. CONDITIONS AND WARkANTlES (SECT. 10), 33 ille qui nominatus est vel non potwerit vel noluerit pretium definire, tunc pro nihilo esse venditionem quasi nulla pretio statuto." In some cases the party in fault might be restrained from preventing' the valuer from acting (d). See " fault " defined by sect. 62, post, p. 136. Conditions and Warranties. 10. — (1.) Stipulations as to time. — Unless a different intention appears from the terms of the contract, stipulations as to time of payment are not deemed -to be of the essence of a contract of sale (e). Whether any other stipulation as to time is of the essence of the contract or not depends on the terms of the contract. (2.) In a contract of sale "month" means pn'md/acie calendar month (/). Illustration. Sale of beans, goods to be shipped, and bUl of lading to be dated, in December and for January, and bill of lading to he prima facie evidence of date of shipment. The buyer may refuse to accept the goods if the bUl of lading is dated 2nd February, even though the goods were shipped on 30th January (g). As regards stipulations other than those relating to the time of payment, time is usually of the essence of the contract, at any rate in mercantile trans- actions (7i). Thus, where there was a contract for the sale of twenty-flve tons of pepper, " name of vessel or vessels, marks and particulars to be declared within sixty days of date of biU of lading," Cotton, L.J., says, " It was argued that the rules of Courts of equity are to be regarded in all Courts, and that equity enforced all contracts though the time fixed therein for completion had (d) See Fry on Specific Performance, 4th ed., p. 523. (e) Martindale v. Smith (1841), 1 Q. B. 389, see at p. 395, non-payment on appointed day : cf. sect. 31, post, p. 82 ; and Mersey iSteel and Iron Co. v. Naylor (1884), 9 App. Cas. 434, at p. 444. As to time of pajrment being essential, see Bishop V. ShilUto (1829), 2 B. & Aid. 329 ; Byan v. Ridley (1902), 8 Com. Cas. 105 (perishable cargo, payment cash in exchange for shipping documents). (/) Webb V. Pairmaner (1838), 3 M. & W. 473 ; cf. 45 & 46 Yict. c. 61, s. 14 (4). In ordinary legal documents " month " primarily means lunar month, Bru^ner v. Moore, [1903] 1 Ch. 305. In a particular trade it may by usage have a special trade meaning, Bissell v. Beard (1873), 28 L. T. 740 (iron trade). (g) Be General Trading Co. (1911), 16 Com. Cas. 95. Cf. Landaner v. Craven (1912), 17 Com. Cas. 193, 202. (h) Bowes v. Shand (1877), 2 App. Cas. 455, at p. 463, per, Ld. Cairns ; Beuter v. Sola (1879), 4 C. P. D., at pp. 246, 249, C. A. ; c/. Baton v. Payne (1897), 35 Sc. L. E. 112, H. L. (delivery of printing machine, time not essential) ; Hartley v, Hymans, [1920] W. N. p. 274 (time essential); Brook Tool Manufacturing Co. v. Hydraulit Gears Co. (1920), 89 L. J. K. B. 263 (delay caused by Government action). C.S.G. D 34 THE BALE OF GOODS ACT, 1893. . passed. This was in the case of contracts, such as purchases and sales of land where, unless a contrary intention could be coUeoted from the contract, the Court presumed that time was not an essential condition. To apply this to mercan- tile contracts would be dangerous and unreasonable. We must therefore hold that the time within which the pepper was to be declared was an essential condition of the contract" (»'). Conditions and warranties in general. — The present subdivision of the Act deals with conditions and warranties pectdiar to the law of sale. But the Act must be regarded as a single chapter in the general law of contract, and it therefore does not attempt to deal with the law of representations, conditions, and warranties, in so far as they are governed by considerations common to the whole field of contract. In so far as sale is regulated by the general law of contract, the rules which apply are saved by sect. 61 (2), pogt, p. 131. No defini- tion of condition precedent is given, but the matter is discussed in Note A, post, p. 175. "Warranty," however, is defined by sect. 62, and it is contrasted with "con- dition " in sect. 11. This was req^uisite, because its proper meaning in the law of sale was much disputed ; see Note A, post, p. 177. It must be borne in mind that many stipulations, which are commonly spoken of as warranties, are really conditions precedent, and have always been given effect to as such. But whether a given stipulation is a condition or a warranty as defined by the Act, is not a question of name, but of the true construction of the contract, see sect. 11 (1), (6), post, p. 36. For a list of express stipulations judicially construed, see post, p. 187. By sect. 65, post, p. 126, any implied condition or warranty maybe negatived or varied by express agreement, course of dealing, or usage. Express stipulations. — As regards express stipulations, the following points may be noted : — • A warranty may be either included in the contract of sale (k), or may be given after the contract of sale is completed (I). Where a warranty is given after the contract of sale is completed it must be supported by fresh considera- tion (to). The warranty in such case is a supplemental contract. In Scotland consideration is not necessary to support a simple contract, so there, it seems, a warranty might be added without fresh consideration. Any affirmation made at the time of sale may amount to a warranty provided it is intended as such — that is to say, if it is intended to form part of the contract (n). If, however, the contract be reduced into writing, evidence (i) Beuter v. Sala (1879), 4 C. P. D,, at pp. 246, 249, 0. A. {k)Sopkms V. Tangueray (1854), 18 C. B. 180 (horse) ; 23 L, J. C, P. 162; cf. Bannerman v. White (1861), 31 L. J. 0. P. 28 (hops sold by sample) ; Stucleyy. Saily (1862), 31 L. J. Ex. 483 (yacht). {I) Boscorla v. Thomas (1842), 3 Q. B. 234 (warranty of horse) ; cf. Hdlbutt v. Hickson (1872), L. B. 7 C. P. 438 (army boots). (m) Boscorla v. Thomas (1842), 3 Q. B. 234. As to an alleged warranty previous to the contract of sale, see Malcolm v. Cross (1898), 35 So. L. E. 794. (n) PasUy v. Freeman (1789), 3 T, E, 51, 56, per Buller, J. ; (1862), 31 L. 3. Ex. at p. 489. CONDITIONS AND WARRANTIES (SECT. 10). 35 6t a contemporaneous verbal warranty would not be admissible (o). A repre- sentation, anterior to the contract, does not constitute a warranty (p), though it may give rise to an action for deceit if made fraudulently. Eropresentations made during a contract of sale may be of five kinds : — Bepresentations classified. — (1) The representation may be a mere expression of opinion or mere commendation by the seller of his wares. It is then inoperative, for simplex commendatio non obligat (q). (2) The representation may amount to a warranty (r). (3) The representation may constitute part of the description of the thing sold, or be an essential term of the contract. It is then a condition going to the root of the contract (s). (4) The representation may be false and fraudulent. In that case even if it only goes to part of the consideration, the contract may be avoided according to the rule Fraiis omnia viiiat (t), and the person who makes it may be liable to exemplary damages — in some oases even when the party damnified was not a party to the contract (u). (5) The representation may create an estoppel (a)). A person who obtains money by knowingly giving a false warranty may be liable criminally (y). (o) Sarnor v. Groves (1855), 16 0. B. 667 ; aliter if the writing be a mere memorandum of the contract ; Allen v. Pink (1839), 4 M. & W. 140 (horae). (p) Bopkvns V. Tanqueray (1854), 15 0. B. 130 (horse) ; 23 L. J. 0. P. 162 ; but see Bannerman v. White (1861), 81 L. J. 0. P. 28 (hops sold by sample), where the antecedent representation constituted the hasis on which the parties subsequently entered into the contract. In such case the untruth of the representation may avoid the contract altogether. (g) Power v. Barham (1836), 4 A. & E. 473 (pictures) ; cf. Chandelor v. Lopus (1603), 2 Croke, 2 ; 1 Smith, Lead. Gas. 9th ed., p. 186 ; Budd v. Fairmaner (1831), 8 Bing. 52 ; Bannerman v. White (1861), 31 L. J. C. P. 28. (r) Schawel v. Beade, [1913] 2 Ir, B. 64 H. L. (representation as to soundness of horse). As to the test for distinguishing expression of opinion from warranty, see De Juossalle v. Guildford, [1901] 2 K. B. at p. 221, 0. A. Is) See sects. 11 to 15, post. An executed contract of sale will not be set aside on the ground of innocent misrepresentation, Seddon v. North Eastern Salt Co., [1905] 1 Ch. 326. Innocent misrepresentation (not being a warranty or condition) may be ground for rescission, but does not found a claim for damages, Harrison v. Knowles and Foster, [1918] 1 K. B. 608, C. A., affirming on a difierent ground ibid., [1917] 2 K. B. 606. Cf. a. Scotch case as to making a railway, where it was held that the contract could not be rescinded as restitutio in integrum was impossible, Glasgow S. W. Baihaay v. Forrest, [1915] A. 0. 526, H. L. (i) Cf. Kennedy v. Panama Mail Co. (1867), L. R. 2 Q. B., at p. 587. (tt) Levy V. Langridge (1838), 4 M. & W. 337, Ex. Ch. (gun) ; and see the notes to Pasley v. Freeman, 2 Smith, L. 0., ed. 11, p. 66. (a;) Maddison v. Alderson (1883), 8 App. Gas. at p. 473 j sea representations classified by Stephen, J., in Gourt below, 5 Ex. D., at p. 596. {y) B. V. Sandars, [1919] 1 K. B. 550 (horse warranty). 36 TEE SALE OE GOODS ACT, 1893. 11. — (1.) When oondition to be treated as warranty. — In England or Ireland — (a.) Where a contract of sale is subject to any condition to be fulfilled by the seller, the buyer may waive the condition, or may elect to treat the breach of such condition as a breach of warranty, and not as a ground for treating the contract as repudiated {z). {b.) Whether a stipulation in a contract of sale is a condition, the breach of which may give rise to a right to treat the contract as repudiated, or a warranty, the breach of which may give rise to a claim for damages, but not to a right to reject the goods and treat the contract as repudiated, depends in each case on the construction of the contract (a). A stipulation may be a condition, though called a warranty in the contract (b). (c.) Where a contract of sale is not severable (c), and the buyer has accepted the goods, or part thereof, or where the contract is for specific goods, the property in which has passed to the buyer, the breach of any condition to be fulfilled by the seller can only be treated as a breach of warranty, and not as a ground for rejecting the goods and treating the contract as repudiated (d), unless there bo a term of the contract, express or implied, to that effect (e). (2.) In Scotland, failure by the seller to perform any material part of a contract of sale is a breach of contract, which entitles the buyer either within a reasonable time after delivery to reject the {z) Ellen y. Topp (1851), 6 Exch. 424, at p. 431; Behn v. Burness (1863), 32 L. J. Q. B. 204, Ex. Ch. ; WalUs v. Pratt, [1911] A. C. 394, and judgment of Moulton, L.J., in the court below, 2 K. B., [1910] 1008, 1012, C. A. ; and sect. 53, post p. 121. (a) Graves v. Legg (1854), 9 Exoh. 709 ; 28 L. J. Ex. 228 ; Behn v. Burness (1863), 32 L. J. Q. B. 204, at p. 205, Ex. Ch. ; Woolfe v. Borne (1877),' 2 Q. B. D., at pp. 360, 361. For suggested tests for distinguishing a oondition from a warranty, see Bentsen V. Taylor, [1893] 2 Q. B., at p. 281, per Bowen, L.J. ; Harrison v. Knowles and Foster, [1917] 2 K. B., at p. 510, per Bailhaohe, J. (6) Cf. Wallis V. Pratt, [1911] A. 0., at p. 397. (c) As to several contracts, see Simpson v. Crippen (1872), L. R. 8 Q. B. 14 ; Brandt v. Lawrence (1876), 1 Q. B. D. 344 ; Jackson v. Botax Motor and Cycle Co ', [1910] 2 K. B. 937, 947, 0. A., and sect. 31, ^osi. {d) Graves v. Legg (1854), 9 Exoh. 709, at p. 717 ; 23 L. J. Ex. 228, at p. 231 ; Behn v. Burness (1863), 32 L. J. Q. B. 204, Ex. Ch. ; Heilbutt v. Hiekson (1872), L. B. 7 C. P., at p. 450; Wallis v. Pratt, [1911] A. C. 394, and 2 K.B., [19101 at pp. 1013, 1015, 0. A. ■' («) Bannerman v. White (1861), 31 L. 3. C. P. 28. CONDITIONS AND WABBANTIES (SECT. 11), 37 ■goods and treat the contract as repudiated (/), or to retain the goods and treat the failure to perform such material part as a breach which may give rise to a claim for compensation or damages. (3.) Nothing in this section shall affect the case of any condition or warranty, fulfilment of which is excused by law by reason of impossibility or otherwise (<7). See " warranty " defined in accordance with, this section by sect. 62, post, p. 140, and note ante, p. 34. The Act throughout, so far as it relates to England, draws a distinction between the terms " condition " and " warranty." This distinction has often been insisted on, but seldom observed by judges and text- writers. As used in the Act, " condition " is the equivalent to the old term " dependent covenant," while " warranty " is equivalent to the old term " independent covenant." See the question discussed in Note A, post, p. 175. In Scotland, no distinction was drawn between conditions and warranties, and the right of rejection was much larger than in England. This right is preserved by the Act. On the other hand, the actio quanti minoris was much restricted in Scotland, and when the buyer could return the goods he was not allowed to keep them and sue for damages. Now he has this right, but it is safeguarded by sect. 59 (consignation into Court), post, p. 131. Waiver. — A party may always waive a stipulation which is for his own benefit. The rule is Cuilibit licet renunciare juri pro se introducto. If a stipulation operates for the benefit of both parties, it can only be waived by mutual consent (h) ; and if a condition be waived temporarily, notice should be given before its fulfilment is again insisted on (i). Where the fulfilment of a condition by one party is prevented by the other the condition is waived (k) ; and the wrongful repudiation of a contract by one party may operate as a waiver of conditions precedent to be performed by the other (Z). (/) Couston v. Chapman (1872), L. E. 2 So. App. 254 (wine) ; Aird v. Pullan (1904), 7 F. 258 (printing machine) ; Nelson v. WilUam Chalmers dk Co. (1913), Ct. of Sess. Gas. 441 (yacht). {g) Hale v. Bawson (1858), 27 L. J. 0. P. 189, at p. 191 ; and see sects. 6 and 7, ante, pp. 27, 28 ; cf. Baily v. De Crespigmy (1869), L. B. 4 Q. B., at p. 185. As to dissolution of contracts by war, see Esposito v. Bowden (1857), 7 E. & B. 763 Ex. Oh. (affreightment), and oases cited, ante, p. 29. (h) Maine Spinning Co. v. SutcUffe & Co. (1917), 23 Com. Gas. 216, 219 (" delivery f.o.b. Liverpool"). (i) Panoutsos v. Raymond Hadley Corporation, [1917] 2 K. B. 473, 0. A. As to waiver in contract generally, see Bentsen v. Taylor (1893), 2 Q. B. 274, at p. 283, 0. A. (k) Mackay v. Dick (1881), 6 App. Gas. 251, H. L. (digging machine, condition to be fulfilled by seller prevented by buyer), followed Kleinert v. Abosso Mining Co- (1913), 58 S. J. 48, P. 0. (defective crusher supplied). (I) Cort V. Ambergate BaiVwoAj Co. (1851), 17 Q. B. 127 (chairs) ; Braithwaite v. Foreign Hardwood Co., [1905] 2 K. B. 548, C. A. (saje of timber by instalpaents), and sg§ sggt. 31, post, and Rotes theye^g, 38 TEE SALE OF OOODS ACT, 1893. Bescission or abandonment. — A contraot of sale, whether in ■writing or not, may be orally rescinded by mutual consent (m), and if, after the lapse of a reasonable time, neither party seeks to enforce the obligations of the contract, an intention to abandon the contract may be inferred (w). 12. Implied undertaking as to title, etc. — In a contract of sale, unless the circumstances of the contraot are such as to show a different intention, there is — (1.) An implied condition on the part of the seller that, in the case of a sale, he has a right to sell the goods, and that, in the case of an agreement to sell, he will* have a right to sell the goods at the time when the property is to pass (o) : (2.) An implied warranty that the buyer shall have and enjoy quiet possession of the goods (p) : (3.) An implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party, not declared or known to the buyer before or at the time when the contract is made. Illustrations. (1) Sale of horses by auction after a selling race. The auctioneer by mistake sells a horse which was not intended by the owner to be included in. the sale. The auctioneer is liable to the buyer in damages (j). (2) An auctioneer sells by auction a piano seized under a distress warrant. The buyer knows that the piano is sold under a distress. If the warrant turns out to be invalid, the auctioneer is not liable (»•). (3) A manufactures and sells to B a patent machine. It turns out after- wards that the patent is invalid, and is an infringement of another patent. A is not liable under sect. 12 (s). See " warranty " and " contract of sale " defined by sect. 62 ; and as to the distinction between a condition arid warranty, see sect. 11, and note thereto, and (to) Morris v. Baron & Co., [1918] A. 0. 1, H. L. (n) Pearl Mill Co. v. Ivy Tannery Co., [1919] 1 K. B. 78 ; 24 Com. Gas. 169. (o) McJiholz V. Bannister (1864), 34 L. J. 0. P. 105 (goods sold by job-warehouae- man) ; c/. French Civil Code, arts. 1603, 1625, 1626 ; Pothier, Contrat de Vente, No. 81 ; Indian Contract Act, 1872, § 109. (p) Ibid. Ab to the distinction between the condition as to title and the warranty of quiet possession, see Howell v. Biehards (1809), 11 East, at p. 642. (2) Anderson v. Croall (1903), 6 P. 153, Court of Session, See further, sect. 54, iJost. (r) Payne v. Elsden (1900), 17 T. L. E. 161. (s) Montforts v. Ma/rsden (1895), 12 Patent Cases 266, CONDITIONS AND WARRANTIES (SECT. 12). 39 post, p. 46. As to negativing implied terms, see sect. 55, post, p. 126. Sect. 12 foUows generally the lines of sect. 7 (1) of the Conveyancing Act, 1881 (45 & 46 Vict c. 41) as to realty. Title. — Formerly the rule was stated to be that on a sale of specific goods there was no impUed warranty of title, and that, in the absence of frand, the seller was " not liable for a bad title unless there was an express warranty, or an equivalent to it by declaration or conduct " (<). But as Lord Campbell said, in 1851, " the exceptions have well-nigh eaten up the rule " (m) ; and sub-sect. (1) may be regarded as declaratory. The cases in which an impKed undertaking as to title has been negatived appear to have arisen out of sales by sheriffs or forced sales by public auction, where the circumstances were such as to indicate that the seller was only seUing such right as he might have in the goods. A sherifE selling an execution debtor's goods gives no implied undertaking as to title (x). He is only responsible if he hnows that he has no title to sell (y). " According to the Eoman law," says Parke, B., " and in France and Scotland, and partially in America, there is always an implied contract that the vendor has the right to dispose of the subject which he sells (z). But, strictly speaking, the implied engagement of the seller in French and Civil Law is not a warranty of title. It consists of (a) an obligation to deliver and (6) a guarantee against eviction. It is the equivalent of a covenant for quiet possession rather than the equivalent of a covenant for title (a). Mr. Benjamin suggested that in the case of breach of warranty of title, the buyer might sue for unliquidated damages, and not merely recover the price, if paid, as on a failure of consideration (6) : The Act adopts this suggestion. Freedom from charges. — Before the Act there was probably an implied warranty on the part of the seller that the goods were free from any charge or lien thereon at the time of sale, but there appears to be no English decision in point (c). In Scotland, France, and Italy, the implied warranty of freedom from encumbrance is clearly recognised (d). " C'est une suite de I'obKgation de Uvrer («) Per Parke, B., in Morley v. Attenborough (1849), 3 Exoh. 500, at p. 512; 18 L. J. Ex. 148, at p. 152 (auction sale of forfeited pledges). (m) Sims V. Marryat (1851), 17 Q. B. 281, at p. 291 (sale of copyright). (a;) Exp. Villars (1874), L. R. 9 Oh. App. 434, at p. 487. (y) Peto y. Blaydes (1814), 5 Taunt. 657 (sale by sheriff's auctioneer) ; cf, Doral Ally V. Abdool Azeez (1878), L. R. 5, Ind. App. 116 (sherifE). (0) Morley v. Attenborough (1849), 3 Exoh., at p. 510, citing Domat, bk. i. tit. 2, s. 2, the French Civil Code, art. 1625 ; and as to Scotland, Bell on Sale, p. 94.i (a) See Pothier, Contrat de Vente, Nos. 48, 82. (6) Benjamin on Sale, 5th ed., p. 598. (c) Ibid., p. 705 ; cf. Conveyancing Act, 1881, s. 7, and see passim, Playford v. Mercer (1870), 22 L. T. (N.S.) 41 (goods to be taken " from the deck" ). The stipulation, if implied, was a warranty, not a condition; see per Lord Esher in Sanders v. Maclean (1883), 11 .Q. B. D. at p. 337. {d) Bell's Law of Sale, pp. 79, 95 ; French Civil Code, arts. 1608, 1626, and Italian CivU Code, arts. 1467, 1482. 40 THE SALE OF GOODS ACT, 1893. la chose vendue," say Pothier, " que le vendeur doit faire £i ses frais ce qui est necessaire pour satisfaire k oette obligation. C'est pourquoi si la'ohose vendue se trouvait engagde a quelque oreanoier du vendeur qui I'eut en sa possession le vendeur serait oblige de la degager a ses frais pour la livrer." He then proceeds to quote the Civil Law, and to give various other illustrations (e). 13. Sale by description. — Where there is a contract for the sale of goods by description, there is an implied condition that the goods shall correspond with the description (/) ; and if the sale be by sample, as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description {g). Illustrations. (1) A agrees to buy a second-hand reaping machine, which he has never seen, but which the seller assures him to have been new the previous year, and to have been used only to cut about fifty acres. The machine is delivered to A. This is a sale by description, and if the machine does not correspond with the description A may reject it (i^). (2) Contract for sale of parcels of laths " about the specification mentioned," property to pass on shipment, and any dispute to be settled by arbitration. If the laths do not substantially accord with the specification the buyer may reject them when delivered to him {i). (3) A sells seed to B as " English sanfoin " on the terms that " seller gives no warranty express or implied as to growth, description, or any other matters." B re-seUs to C. The seed is sown and turns out to be giant sanfoin. The seed does not correspond with the description, and B may recover damages from A as in a case of breach of warranty (K). (e) Contrat de Venie, No. 42. (/) Josling v. Eingsford (1863), 32 L. J. C. P. 64 (sale of oxalic acid after inspection and without warranty) ; approved, M)dj/ v. Gregson (1868), L. E. 4 Ex., at p. 56; Borrowman v. Drayton (1876), 2 Ex. D. 15, 0. A. (cargo of i petroleum) ; Bamdall v. Newson (1877), 2 Q. B. D., at p. 109, C. A. (carriage pole) ; Bowes v. Shand (1877), 2 App. Gas. 455 (rice) ; Manbre Saccharine Co. v. Corn Products Co., [1919] 1 K. B. 198, at p. 207 (size of bags). (g) Nichol v. Godts (1854), 10 Exoh. 191 (foreign refined rape oil) ; 23 L. Z. Ex. 314 ; Azimar v. Casella (1867), L. R. 2 C. P. 677, Ex. Oh. ; see at p. 678 (long staple Salem cotton) ; Wallis v. Pratt, [1911] A. C. 394, H. L. (seed sold as English sanfoin, without warranty). (h) Varley v. WTivpp, [1900] 1 Q. B. 513. (i) Vigers v. Sanderson, [1901] 1 K. B. 608. (ft) Wallis V. Pratt, [1911] A. 0. 394, H. L., approving the dissenting judgment of Moulton, L.J., in court below, 2 K. B., [1910] 1003, 1012, C. A. CONDITIONS AND WARRANTIES (SECT. 13). 41 Where goods are described by the contract, and the buyer contracts in reliance on that description, there is a sale by description. " The term sale of goods by description," says Channell, J., " must apply to all cases where the purchaser has not seen the goods, but is relying on the description alone " (Z). And it may apply even where he has seen the goods, if the deviation of the goods from the description is not apparent. The principle is a universal one. Si ms pro aura veneai non valet (m). Thus, where there was a contract to purchase rice to be shipped at Madras in March and April, it was held that the buyer was not bound to accept a cargo of rice, part of which was shipped in February, and Lord Blackburn said, " If you contract to sell peas, you cannot oblige a party to take beans. If the description of the article tendered is different in any respect, it is not the article bargained for, and the other party is not bound to take it " (n). " Suppose," says Montague Smith, J., " a contract were made for the sale of ' ten casks of spirits ' guaranteed to be equal to a sample produced, with a stipulation for an allowance should the quality prove inferior to the guarantee, and the sample being brandy, the bulk tendered were to consist of rum, could the allowance clause be applied ? " ; and he proceeds to show that the same rule must apply to cotton of a different hind (not quality) from the sample (o). Where, however, the article tendered answers to the description, the buyer must, apart from the warranty, express or implied, take the risk as to its quality and condition (p). Where there was a contract for the sale of Calcutta linseed, Willes, J., said, "The purchaser had a right to expect, not a perfect article, but an article which would be saleable in the market as Calcutta linseed. If he got an article so adulterated as not reasonably to answer that description, he did not get what he bargained for. As if a man buys an article as gold, which every one knows requires a certain amount of alloy, he cannot be said to get ' gold ' if he gets an article so depreciated in quality as to consist of gold only to the extent of one carat " (5). Where the parties are really agreed on the thing sold, a misdescription of it in the contract may be immaterial, ior falsa demonstratio non nocet (r). Sometimes, though rather inconveniently, the implied conditions of mer- chantableness and fitness for a particular purpose |are treated as part of the description ; but the Act treats them as distinct, see sect. 14, post. (1) Varley v. WMpp, [1900] 2 Q. B. at p. 516 ; cf. Thornett v. Beers oman law as emptio generis. See Moyle's Sale in the Civil Law, p. 28, where the effects of this contract are discussed. Part of specific whole. — The sale of an unascertained portion of a larger ascertained quantity of goods passes no property to the buyer till that portion is identified and appropriated to the contract. " If," says Bayley, J., " I agree to deliver a certain quantity of oil, as 10 out of 18 tons, no one can say which part of the whole quantity I have agreed to deliver until a selection is made. There is no individuality until it has been divided "(e). But suppose A, having 18 tons of oil, sells 10 tons to B, and 8 tons to C, he has divested himself of all interest in the whole. Possibly in such case the property in the whole might pass to B and C as tenants in common, but the point is uncertain (/). Qoods mixed. — If the goods sold have been ascertained, and the property has passed to the buyer, his rights cannot be afEected by the fact that the seller has afterwards mixed up the goods sold with other goods (g). 17. — (1.) Property passes when intended to pass. — Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred {h). (2.) For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties, and the circumstances of the case (i). (e) Gillett v. Hill (1834), 2 Or. & M. 530, at p. 535 ; Boswell v. Kilhurn (1862), 15 Moore P. 0. 809 (hops not separated from larger bulk) ; Hayman \.'M'Lintock (1907), 9 F. 936 ; Benjamin on Sale, 5th ed., p. 834. (/) Cf. IngUsY. Slock (1885), 10 App. Oas. 263, where the case turned on insurable interest. ig) Sayman v. M'Lintock (1907), 9 P. 936 ; but cf. Spence v. Union Mar. Ins. Co. (1868), L. B. 3 0. P. 427, as to goods of difierent owners mixed during carriage, where a tenancy in common was held to arise. {h) Seath v. Moore (1886), 11 App. Gas. 350, at p. 370, per Lord Blackburn, and at p. 380, per Lord Watson (ship engines) ; Beid v. Macbeth, [1904] A. C. 223, H. L. (ship in course of building, and materials for her oonstruotion) ; cf. Shepherd v. Harrison (1871), L. E. 5 H. L., at p. 127 ; McEntire v. Grossley, [1895] A. C, at p. 463 (if the contract contains inconsistent terms the general tenour of it must govern). , (i) Ogg V. Skuter (1875), L. R. 10 0. P., at p. 162 (bill of lading) ; c/. Young v. Matthews (1866), L. B. 2 0. P. 127 (bricks) ; The Pa/rchmi, [1918] A. G. 157, at pp. 161, 162, P, C., cited post, p. 14^. TRANSFER OF PROPERTY (SECT. 17). 53 Illustrations. (1) Contract to build a ship to be classed Al at Lloyds, to be paid for after completion. The Tossel as she is constructed, and the materials from time to time intended for her, whether in the building yard or elsewhere, to be the property of the purchasers. This is a contract for a complete ship.. The buyer obtains no property in iron plates at the railway station marked for the ship, and creditors of the buyer cannot attach them (_/). (2) Contract to build a ship, instalments- of price to be paid as work proceeds, and buyer to have the right to inspect and superintend construction, delivery to be considered complete after satisfactory official trial. This is a contract for a complete ship, and no property passes to the buyer before the official trial (h). (3) A in England agrees with B in England to sell him a quantity of patented dye stuffs, delivery to be made at Basle in Switzerland. A procures the goods abroad, and has them forwarded to Basle, where his agent holds them at B's disposal. If B assents to this the property in the goods thereupon passes to B (Z). (4) B offers to buy a parcel of diamonds from a foreign firm. The diamonds are sent by post with a bill drawn on the buyer and an invoice marked " settled by acceptance.'' If the bill of exchange is not accepted the ownership of the diamonds remains in the seller (m). By English law the property may pass by the contract itself, if such be the intention of the parties. In other words, the contract may include a convey- ance. " Where, by the contract itself," says Lord Wensleydale, "the vendor appropriates to the vendee a specific chattel, and the latter thereby agrees to take that specific chattel and to pay the stipulated price, the parties are then in the same situation as they would be after a delivery of goods in pursuance of a general contract. The very appropriation of the chattel is eqtiivalent to delivery by the vendor, and the assent of the vendee to take the specific chattel and to pay the price is equvialent to his accepting possession. The effect of this contract, therefore, is to vest the property in the bargainee " (n). Whether this be a satisfactory explanation or not, the rule is undoubted, and is as old as the year books (o). Eoreigrn rules. — By the Civil Law, the property in goods did not pass by virtue of a contract of sale until delivery, the rule being Traditionibus et (j) Beid V. Macbeth, [1904] A. 0. 223, H. L. ; see at p. 230 for the principle. {k) Sir J. Lamg v. Barclay & Co., [1908] A. 0. 35, H. L. (I) Badische AniUn Fabrik v. Hickson, [1906] A. C. 419 (there is no " vending " in England within the meaning of the Patent Acts). (m) Saks v. Tilley (1915), 82 T. L. E. 148, C. A. ; cf, sect. 19 (3), post. (n) Dixon v. Tates (1833), 5 B. & Ad. 313, at p. 340, per Parke, J. (puncheons of rum). (o) For a discussion of its policy, see 2nd Report of Mercantile Law Commission, 1855, pp. 9, 42 ; Blackburn on Sale, pp. 187-197 ; and for its history, see Cochrane V. Moore (1890), 25 Q. B. D. 57, C. A. (attempted gift of third share of a borse). 54 TEE SALE OF GOODS ACT, 1893. v^ucapionibus, dominia rer.um, non nudispractis, transferunter (p). But thougk the prepay did not pass, as soon as the parties were agreed on the subject- matter and the price, there was an emptio perfeeta, the result of which was that the risk pasii^ed^to the buyer, and he acquired ajus ad rem, though not a, jus in re. I The^ Scotch common law followed this rule, but by the 19 & 20 Vict. c. 60, s. 1 (pow repealed), when goods had been sold but not delivered, the seller's creditors cbuld not attach them, and a sub-vendee was entitled to demand the goods subject to satisfying the seller's lien for the price. The efEect was, that when in England the property in goods would pass to the buyer, the same results followed in Scotland, though those results were arrived at in a different manner (q). Now, under the Act, the same rule applies to both countries. France and Italy have also departed from the principle of the Civil Law, and have adopted a rule substantially the same as that of English law (r). See further note ante, p. 11, as to conflict of laws. 18. Rules for ascertaining intention. — Unless a different intention appears (s), the following are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer. Bule 1. — Where there is an unconditional (t) contract for the sale of specific goods, in a deliverable state (u), the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment or the time of delivery, or both, be postponed (x). (p) Moyle's Justinian, p. 200, citing Cod. 2, 3, 30. (g) M'Bain v. Wallace (1881), 6 App. Cas. 588, at p. 618 ; Seath v. Moore (1886), 11 App. Cas., at pp. 370, 380. See, too, Blackburn on Sale, pp. 187-197. (r) French Civil Code, art. 1583 ; Italian Civil Code, art. 1448. For the history of this departure, see VioUet, Histoire du Droit Franfaise, pp. 187-197. (s) Calcutta Co. v. De Mattes (1863), 32 L. J. Q. B., at p. 329 ; FurUy v. Bates (1863), 33 L. J. Ex. 43 (fire-clay); Young v. Matthews (1866), L. E. 2 C. P. 127 (bricks) ; and note, post, p. 190. (t) As to contracts which are in terms conditional, see ante, pp. 1 and 6. (u) Deliverable state = state in which buyer is bound to accept, see sect. 62j post, p. 141. (x) Tarling v. BaxUr (1827), 6 B. & C. 360; Tudor's Merc. Cases, 3rd ed., p. 308, and notes ; Dixon v. Yates (1833), 5 B. & Ad., at p. 340 ; Barry. Oibson (1838), M. & W. 390 ; MarUndale v. .Smith (1841), 1 Q. B., at p. 395 ; Gilmour v. Supple (1858), 11 Moore, P. C, at p. 556 ; Joyce v. Swann (1864), 17 0. B. (N.S.), at p. 102 (price not fixed) ; Sweeting v. Turner (1871), L. B. 7 Q. B. 310, at p. 313 ; Heilbutt v. Hickson (1872), L. B. 7 0. P., at p. 449. See the rule stated and contrasted with the Civil Law and Scotch common law; Seath v. Moore (1886), 11 App. Cas., at p. 370. TRANSFER OF PROPERTY (SECT. 18). 55 Bule 2. — Where there is a contract for the sale of specific goods and the seller is bound to do something to the goods, for the purpose of putting them into a deliverable state, the property does not pass until such thing be done (y), and the buyer has notice thereof. Bule 3. — Where there is a contract for the sale of specific goods in a deliverable state {z), but the seller is bound to weigh, measure, test, or do some other act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until such act or thing be done(«), and the buyer has notice thereof. Bule 4. — When goods are delivered to the buyer on approval or " on sale or return " or other similar terms, the property therein passes to the buyer : — (a.) When he signifies his approval or acceptance to the seller, or does any other act adopting the transaction (b) : (b.) If he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiration of such time, and, if no time has been fixed, on the expiration of a reasonable time. What is a reasonable time is a question of fact (c). [y) Bugg v. 'Minett (1809), 11 East, 210 ; TcmsUy v. Twrner (1835), 2 Bing, N. C. 151 ; LcMler v. BurUnson (1887), 2 M. & W. 602 ; Acraman v. Morrice (1849), 8 C. B, 449 ; 18 L. J. 0. P. 57 ; Boswell v. Eilborn (1862), 15 Moore, P. 0. 309 ; 8 Jur. 448 ; Young v. Matthews (1866), L. E. 2 0. P. 127 (bricks) ; Pothier, Oontrat de Vente, Nos. 308, 309 ; Anderson v. Morice (1875), L. K. 10 C. P. 609, at p. 618, Ex. Ch. afarmed, 1 App. Cas. 713 ; Seath v. Moore (1886), 11 App. Cas., at p. 370. (z) Deliverable state = state in which buyer is bound to accept, see sect. 62, post. (a) Furley v. Bates (1863), 33 L. J. Ex. 43 (fire-clay), criticising Blackburn on Sale, p. 162 ; Hanson v. Meyer (1805), 6 East, 614 ; Zagury v. Furnell (1809) 2 Camp. 239 ; Simmons v. Swift (1826), 5 B. & C. 857 (unweighed portion of a stack of bark) ; Pothier, Contrat de Vente, Nos. 808, 309. (6) Swam v. Shepherd (1832), 1 M. & Rob. 223 ; Bell's Law of Sale (Scotland), p. 111. (c) Moss V. Sweet (1861), 16 Q. B. 493 ; 20 L. J. Q. B. 167 ; cf. Beverley v. Lincoln Gas Co. (1887), 6 A. & E. 829; Ex p. White (1870), L. B. 6 Ch. App. 397 ; Bay v. Barker (1879), 4 Ex. D. 279, C. A. ; EVphick v. Barnes (1880), 6 C. P. D. 321 (death of horse delivered on sale or return). As to delay in return caused by V7ar, cf, Moore v. Evans, [1918] A. 0. 185, H. L. (claim for total loss on policy). 56 THE BALM OP GOODS ACT, 1803, Bule 5. — (1.) Where there is a contract for the sale of un- ascertained or future goods by description, and goods of that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the assent of the buyer, or by the buyer with the assent of the seller, the property in the goods thereupon passes to the buyer (d). Such assent may be express or implied, and may be given either before or after the appropriation is made (e) : (2.) Where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier or other bailee [or custodier] (whether named by the buyer or not) for the purpose of trans- mission to the buyer, and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract (/). Illustrations. Eule 4. — ( 1) A delivers goods to B on sale or return. B pledges the goods. This adopts the sale, and the property passes to the buyer. A therefore cannot recover the goods from the pawnbroker (ji). (2) A delivers goods to B on sale for cash or return, the goods to remain the property of A tiU settled for or charged. C tells B he can find a customer for them, but, instead of doing so, he pawns them with D. A can recover , the goods from D, the pawnbroker (h). (d) For statement of principle, see JSeilbutt v. Hickson (1872), L. R. 7 0. P., at p. i49. See, in illustration, Busk v. Davis (1814), 2 M. & S. 397 ; Bohde v. Thwaites (1827), 6 B. & 0. 388, see at p. 393 ; Aldridge v. Johnson (1857), 26 L. J. Q. B. 296 (barley) ; Langton v. Higgins (1859), 28 L. J. Ex. 252 (crops of oil of peppermint); Boswell V. Kilbom (1862), 15 Moore, P. 0. 308 ; 8 Jur. 443. (e) Campbell v. Mersey Docks (1863), 14 C. B. (N. S.) 412, at p. 415, per Willes, J. ; cf. Oodts V. Bose (1855), 17 C. B. 229, at p. 237 ; Aldridge v. Johnson (1857), 26 L. J. Q. B. 296 ; Jenner v. Smith (1869), L. E. 4 C. P. 270 (hops at a warehouse). (/) For statement of principle, see Wait v. Baker (1848), 2 Exoh., at p. 7, per Parke, B. ; Calcutta Co. v. De Matlos (1863), 32 L. J. Q. B., at p. 328, per Blackburn, J. ; Joyce v. Swann (1864), 17 C. B. (N. S.) 84, at p. 102, per Willes, J. As to delivery to buyer, Greaves v. Eepke (1818), 2 B. & Aid. 131 ; Ogle v. Atkinson (1814), 5 Taunt. 759. Delivery to carrier' by land, Dutton v. Solomonson (1803) 8 B. & P. 582; to canal-boat, Fragamo v. Long (1825), 4 B. & 0. 219; Bryams v. Nix (1839), 4 M. & W. 775 ; on board ship, AUoMnder v. Gardner (1835), 1 Bing. N. 0. 671 ; Tregelles v. Sewell (1862), 7 H. & N. 574, Ex. Oh. ; Mirabita v. Imperial Ottoman Bank (1878), 3 Ex. D. 164, C. A. See further note to sect. 32 (3) as to f.o.b. contracts, c.i.f. contracts, and ex ship contracts. (g) Ei/rkham v. Attenborough, [1897] 1 Q. B. 201, C. A. {h) Werner v. Gill, [1905] 2 K. B. 172, afarmed, [1906] 2 K. B. 574, 0. A. ; cf. Edwards v. Vaughan (1910), 26 T. L. R. 545, C. 'A. The terms of the special contract take the case out of rule 4. TRANSFEE OF PROPERTY (SECT, 18). 57 (3) A delivers diamonds to B on sale or return, and B delivers them to C on tie like terms. C delivers them to D, and while they are in D's custody they are lost. As B cannot return the diamonds to A, he has hy his dealing with them adopted the transaction and is liable for the price (i), (4) A has jewellery belonging to X which he may seU for £750. He delivers it on approval to B, who offers £300 for it. Before B's offer is referred to X and refused, B seUs the jewellery to C for £300. A thereupon sues B and judgment by consent is entered for £750. This affirms the transaction between A and B, even though the judgment is not satisfied through B becoming bankrupt, and A cannot maintain an action against C (/). Eule 5. — (5) A in England writes to B at Basle in Switzerland for a packet of patent dye, to be sent by parcel post. B posts the packet to A. The property passes to A as soon as the packet is posted in Basle (fc). (6) B orders 140 bags of rice from A, pays for them and asks for delivery. A sends him a delivery order for 125, and asks him to send for the remaining 15 at A's place of business. B waits a month before sending for them, and in the meantime they are stolen. The property in the 15 bags has passed to B, and he must bear the loss (I). The term " custodier " is the Scotch equivalent of " bailee." See " specific goods," " future goods," " deliverable state," and " delivery," defined by sect. 62, post. As to generic goods, see ante, p. 51. As the EngUsh Courts have rejected the objective test of delivery for marking the time when the property is to pass, they have been forced to lay down more or less arbitrary rules for fixing the moment when the property is to be held to pass in cases where the parties have either formed no intention on the point, or failed to express it. Rule 1. — See note to section 17, ante, p. 53. The first four rules deal only with specific goods. IMe 2. — Specific goods. — Boles for ascertaining intention. — The final words, " and the buyer has notice thereof," were added in Committee on a suggestion from Scotland that it was unfair that the risk should be transferred to the buyer without notice. It is to be noted that this rule is negative. The case of an article which the seller is to manufacture for the buyer is sometimes treated as coming under this rule, but it generally comes under Bule 5. If a man orders a watch to be specially made for him, it is clear that the watchmaker may, if he likes, make two such watches, and that he keeps his contract by delivering either of them (m). Lord Wensleydale has pointed out that there (i) Genu v. Wmkel (1912), 17 Com. Gas. 323, 0. A. (j) Bradley v. Ramsay & Go. (1912), 106 L. T. 771, 0. A. (h) Badische AniUn Fabrik v. Basle Chemical Works, [1898] A. C, at pp. 203, 204. {I) Pignataro v. Qilroy & Son [1919], 1 K. B. 459, 24 Com. Gas. 174. For converse case, see Healey v. Hewlett & Sons, [1917] 1 K. B. 337 (delay in making delivery). (m) Cf. Atkinson v. Bell (1828), 8 B. & G. 277 ; and Xenos v. Wickham (1867), L. E. 2 H. L., at p. 316, per Wllles, J. 58 THE SALE OF GOODS ACT, 1893, may be an intermediate state of things. Aji article may be in course of manu- facture, and the parties may hare so far agreed upon it that there arises what the Roman lawyers call ohligatio certi corporis. The seller would break his contract if he delivered any other article, but there maybe no intention that the property in it should pass before its completion («.). Unless a difEerent intention be clearly shown, the rule is that the property in an article, which the seller is to make or complete for the buyer, does not pass until the article is delivered in a finished state, or until it is ready for delivery and is approved by the buyer in that state (o). At one time the Courts seemed inclined to reverse the presumption in the case of shipbuilding contracts, where the ship was to be paid for by stated instalments as the work progressed (^p) ; but in a subsequent case in the House of Lords it was held that there was no sound distinction between the case of a ship and any other corpus tnanufactum (j). Bute 3. —As to the concluding words, " and the buyer has notice thereof," see note to last rule. Lord Blackburn, in his work on Sale, states this rule without confining its operation to acts to be done by the seller, and regards it as a rule arbitrarily adopted from the Soman law, where it was 'a logical deduction from the principle that there could be no sale until the price was fixed. But the Court of Exchequer in 1863 reviewed the cases, and came to the conclusion that the rule should be qualified, as in the text, by confining it to acts to be done by the seller (r). This construction brings the rule into line with Kule 2. Rule 4. — Sale or return, etc. — This rule, like the others, is merely a primd facie rule. In some trades the usage is that when goods are delivered on fourteen days' approval, the property does not pass to the buyer on the expiration of that time, but the seller at any time after the fourteen days can call on the buyer either to take or to return the goods at once. When goods are sent on trial, or on approval, or on sale or return, the clear general rule is that the property remains in the seller tiU the buyer adopts the transaction (e), but it is quite competent to the parties to agree that the property shall pass to {») Laidler v. Burlinson (1837), 2 M. & W., at p. 610 (ship In course of building) ; Wait v. Baker (1848), 2 Exoh., at pp. 8, 9. (o) Clarke v. Spence (1836), 4 A. & E,, at p. 466 (ship in course of building), reviewing the previous cases ; Seath v. Moore, infra. As to an article commenced by one person and finished by another, see Oldfield v. iMwe (1829), 9 B. & 0. 73 (machinery) ; and cf. Beaumont v. Brengeri (1847), 5 C. B. 301 (carriage requiring slight alteration) ; Laws of England^ vol. xxv., p. 172. . (p) Woods V. Russell (1822), 5 B. & Aid. 942; Exp. Lambton (1875), L. E. 10 Oh, App. at p. 414. (2) Seath v. Moore (1886), 11 App. Gas., at pp. 370, 380 (ship and its fittings) ; Story on Sale, § 316a, and notes to sect. 17, ante. (r) IPurley v. Bates (1863), 33 L. J. Ex. 43, commenting on Blackburn on Sale, p. 152. (s) Swain v. Shepherd (1832), 1 M. & Bob. 223 ; cf. Be Jones (1889), 6 Morrell, at p. 197 ; cf. B^darride, Des Achats ct Ventes, § 156. TRANSFER OF PROPERTY (SECT. 18). 59 the buyer on delivery, but that, if he does not approve the goods, the property shall then revest in the seller (t). To use the language of continental lawyers, the condition on which the goods are deKvered may be either suspensive or resolutive. Rule 5. — Qenetic goods. — The term " future goods " includes goods to be acquired and goods to be made by the seller after the formation of the Contract of sale. As to a special article to be made for the buyer, see note to Exde 2. As to a present sale of future goods, see sect. 5, ante, p. 25. When there is a contract for the sale of unascertained goods, and the goods are afterwards selected by the buyer, or if selected by the seller are approved by the buyer, no difficulty arises. The difficulty arises when the seller makes the selection pursuant to an authority derived from the buyer ; and it is often a nice question of law whether the acts done by the seller merely express a revocable intention to appropriate certain goods to the contract, or whether they show an irrevocable determination of a right of election. " The general rule seems to be that when, from the nature of an agreement, an election is to be made, the party who is by the agreement to do the first act, which from its nature cannot be done tUl the election is determined, has authority to make the choice in order that he may perform his part of the agreement : when once he has performed the act the choice has been made and the election irrevocably determined; tiU then he may change his mind as to what the choice shall be, for the agreement gives him till that time to make his choice " («). The expression that the property in the goods passess by their " appropriation to the contract," though consistently used in the modern cases, is not a fortunate one. In the first place, as Lord Wensleydale has pointed out, the term is used in two senses. It may mean that the goods are so far appropriated that the seller would break his contract by delivering any other goods, though they stiU remain his property, or it may, and usually does, mean that the goods are finally appropriated to the contract so as to pass the property in them to the buyer (to). In the second place, if the decisions be carefully examined, it will be found that in every case where the property has been held to pass, there has been an actual or constructive delivery of the goods to the buyer. If the term " delivery " had been substituted for '■ appropriation," probably less difficulty would have arisen ; and itseems a pity that this was not done by the Act. The commonest form of appropriating goods to the contract is by delivering them to a carrier, and then, if there be authority to so deliver them, and the seller does not reserve the right of disposal, " the moment the goods which have been selected in pursuance of the contract are delivered to the carrier, the carrier becomes the agent of the vendee, and such a delivery amounts to a delivery to the vendee ; and if there is a binding contract between the vendor and the vendee, either by note in writing, or part (t) Cf. Head v. Tattersall (1871), L. B. 7 Ex. 7. The Roman law was similar ; see Moyle's Justinian, vol. i., p. 423. (m) Blackburn on Sale, p. 128, citing Heywood's Case, 2 Coke, 36, where it is said " the certainty and thereby the property begins by election." Cf. Bankin v. Potter (1873), L. K. 6 H. L., at p. 119, as to election. (w) Wait v. Baker (1848), 2 Bxch., at p. 8, per Parke, B. 60 THE SALE OF GOODS ACT, 1893. payment, or subsequently by part acceptance, then ttere is no doubt that the property passes by such delivery to the carrier. It is necessary, of course, that the goods should agree with the contract " (»). The qualifying reference to the Statute of Frauds (now reproduced ia sect 4, ante, p. 18) only applies where the value of the goods is £10"or upwards. 19. — (1.) Eeservation of right of disposal. — Where there is a contract for the sale of specific goods or where goods are subsequently appropriated to the contract, the seller may, by the terms of the contract or appropriation, reserve the right of disposal of the goods until certain conditions are fulfilled. In such case, notwithstanding the delivery of the goods to the buyer, or to a carrier or other bailee [or custodier] for the purpose of transmission to the buyer, the property in the goods does not pass to the buyer until the conditions imposed by the seller are fulfilled (y), (2.) Where goods are shipped, and by the bill of lading the goods are deliverable to the order of the seller or his agent, the seller is primd facie deemed to reserve the right of disposal (z). (3.) Where the seller of goods draws on the buyer for the price, and transmits the bill of exchange and bill of lading to the buyer together, to secure acceptance or payment of the bill of exchange, the buyer is bound to return the bill of lading if he does not honour the bill of exchange, and if he wrongfully retains the bill of lading the property in the goods does not pass to him (a). (x) Wait V. Baker (1848), 2 Exoh., at p. 8 (unindorsed bill of lading). (y) For statement of principle, see Mirabita v. Imperial Ottoman Banh (1878), 3 Ex. D. 164. In illustration, see as to delivery to buyer, Brandt v. Bowlhy (1831), 2 B. & Ad. 932; Godts v. Bose (1855), 17 C. B. 229; 25 L. J. 0. P. 61. As to delivery on board ship. Wait v. Baker (1848), 2 Exoh. 1 ; Van Gasteel v. Booker (1848), 2 Exoh. 691, 18 L. J. Ex. 9 ; Turner v. Liverpool Docks (1851), 6 Exch. 543, Ex. Oh. ; 20 L. J. Ex. 293 ; Moakes v. Nicholson (1865), 34 L. J. G. P. 273 ; Gabarron V. Kreeft (1875), L. B. 10 Ex. 274. {z) Ogg V. Shuter (1875), 1 C. P. D. 47, C. A. ; Mirabita v. Imperial Ottoman Bank (1878), 3 Ex. D., at p. 172, 0. A. ; Biddell Brothers v. .E. Clement Horst £ Co., [1911] 1 K. B. at p. 956, per Kennedy, L.J. ; The Parchim, [1918] A. C. 159 (prize case). See Joyce V. Swann (1864), 17 C. B. (N. S.) 84, where inference was negatived. (a) Shepherd v. Harrison (1871), L. R. 5 H. L. 116, see at p. 133, per Lord Cairns ; Cahn V. Pockett, [1899] 1 Q. B., at p. 656, C. A. ; Barton Thomson & Go. v. Vigers Brothers (1906), 19 Com. Cas. 175 ; distinguished on the special facts, Jordeson <& Co. v. London Hardwood Go. (1813), 19 Com. Cas. 161 (agent authorised to draw for price, not party to contract). Gf. Saks v. Tilley (1915), 32 T. L. R. 148, C. A. (goods and bill sent together). TRANSFER OF PROPERTY (SECT. 19). 61 Illustration. A consigns goods to B by ship, and draws on him for the price. He dis- counts the bill with a bank, indorses the bill of lading in blank, and authorises the bank to hand the bill of lading to B when he accepts the bill of exchange. Apart from any special terms in the contract, the property in the goods is transferred to B as soon as he accepts the bill of exchange (6). This section, like the preceding sections, deals only with the transfer of the property in goods as between seller and buyer, and does not affect the protection afforded to innocent third parties by sect. 25 and the Factors Acts (c). ^In a case iuthe Court of Appeal, where the previous decisions were reviewed, Lord Bramwell seems to think that the seller may retain a jus disponendi, even when the property has passed to the buyer ; but Cotton, L .J., sums up the law as follows : " In the case of such a contract (i.e. a contract for the sale of unascertained goods), the delivery by the vendor to a common carrier, or, unless the effect of the shipment is restricted by the terms of the bill of lading, shipment on board a ship of, or chartered for, the purchaser is an appropriation sufficient to pass the property. If, however, the vendor, when shipping the articles which he intends to deliver under the contract, takes the biU of lading to hi^ own order, and does so not as agent, or on behalf of the purchaser, but on his own behaK, it is held that he thereby reserves to himself a power of disposing of the property, and that consequently there is no final appropriation, and the property does not on shipment pass to the purchaser. ... If the vendor deals with, or claims to retain the bill of lading, in order to secure the contract price, as when he sends forward the bill of ladiug with a bUl of exchange attached, with directions that the bill of lading is not to be delivered to the purchaser tiU acceptance or payment of the biU of exchange, the appropriation is not absolute, but until acceptance of the draft, or payment or tender of the price, is conditional only, and until such acceptance or payment or tender, the property in the goods does not pass to the purchaser " (d). Referring to this passage and sect. 19 (1) and. (3), Sir S. Evans says, "It is well known that these portions of the Act " were founded on the judgment of Cotton, L.J. " (e). With reference to Lord Bramwell's doubt, it seems that, though the property in goods may be intended to pass to the buyer, they may be delivered to his agent on such terms as to prolong the right of stoppage in transitu, and in that sense a limited right of disposal may be said to be reserved (/). (6) The Prinz Adelbert, [1917] A. 0. 586, P. 0. ; of. The Derflinger No. 2, [1918] 118 L. T. (N. S.) 521, where the bill was not accepted till after the goods had been seized as prize, and the property was held not to have been transferred ; and The MiramicM (1915), 84 L. J. P. 105, 108, S. P. (c) Oahn v. Pockett's Bristol Channel Co., [1889] 1 Q. 6. 643, 0., A. (d) MiraWta v. Imp. Ottoman Bank (1878), 3 Ex. D., at p. 172, see at p. 170, per Lord Bramwell. Gf. Exp. Banner (1876), 2 Oh. D. 278 ; Laws of England, vol. xxy., p. 182. (e) The Annie Johnson, [1918] P., at p. 163. (/) Of. SchotsmMns v, Lancashire Bailwwy (1867), L. K. 2 Ch. App., at p. 335. 62 THE SALE OF GOODS ACT, 1893. 20. Risk prima facie passes with property. — Unless otherwise agreed (g), the goods remain at the seller's risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer, the goods are at the buyer's risk whether delivery has been made or not (h). Provided that where delivery has been delayed through the fault of either buyer or seller the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault (i). Provided also that nothing in this section shall affect the duties or liabilities of either seller or buyer as a bailee [or custodier] of the goods of the other party {k). Illustration. Furs are delivered " on approval " with invoice. They are stolen by burglars. By the custom of the fur trade the goods are at the risk of the person ordering them on approval. The sender can recover the invoice price from the person to whom he delivered them (I). "Custodier" is the Scotch equivalent of "bailee"; see "delivery" and " fault," defined by sect. 62. The expression " might not have occurred " was substituted for " would not have occurred " in the first proviso at the instance of Lord Watson. It shifts the onus on to the party in fault. Transfer of risk — " As a general rule," says Blackburn, J., " res perit domino, the old Civil law maxim, is a maxim of our law, and, when you can show that the {g) Martineau v. Kitchmg (1872), L. B. 7 Q. B. 436 ; Castle v. Flayford (1872), L. B. 7 Ex. 98, at p. 100, Ex. Ch. ; Anderson v. Morice (1875), L. B. 10 C. P. 609, at p. 616 ; affirmed 1 App. Gas. 713 (cargo) ; cf. Stock v. Inglis (1882), 10 App. Cas. 283 (f.o.b. contract) ; Groom w. Barber, [1915] 1 K. B. 316 (o.i.f. contract). (h) Eor examples of seller's risk, see Simmons v. Swift (1826), 5 B. & C. 857 (stack of bark); Head v. Tattersall (1871), L. B. 7 Ex. 7, see at p. 14 (horse); ElpMclc V. Barnes (1880), 5 C. P. D. 321, see at p. 326 (death of horse delivered on sale or return). For example of buyer's risk, see Bugg v. Minett (1809), 11 East, 210 (turpentine sold by auction) ; Pragano v. Long (1825), 4 B. & C. 219 (hardware) ; Tarling v. Baxter (1827), 6 B. & C. 360 (stack of hay) ; Sweeting v. Turner (1871), L. B. 7 Q. B. 310 (sale of goods by auction) ; Tudor's Merc. Cases, 3rd ed., p. 308, and notes ; The Parchim, [1918] A. C. 157, P. C. ; Laws of England, vol. xxv., p. 188. (i) Martineau v. Kitching (1872), L. E. 7 Q. B. 436, at p 456; per Blackburn, J. (sugar). (fc) Cf Bead v. Tattersall and Elphich v. Barnes (cited above,' and see WieU v. Dennis Brothers (1913), 29 T. L. B. 250 (pony left in possession of seller for a few days— gratuitous bailee) ; Shaw v. Simmons d Sons, [1817] 1 K. B. 799 (delay in delivery, good's destroyed by fire) ; Laws of England, vol.. xxv., p. 191. {I) Bevi/ngton v. Dale (1902), 7 Com. Oas. 112. TBANSFER OF PROPERTY (SECT. 20). 63 property passed, the risk of the loss is prima facie in the person in whom the property is. If, on the other hand, you go beyond that and show that the risk attached to one person or the other, it is a very strong argument for showing that the property was meant to be in him, but the two are not inseparable. . . . By the Civil law it was always considered that if there was any weighing, or anything of the sort which prevented the contract from being perfecta eviptio, whenever that was occasioned by one of the parties being in mora, and it was his default, he shall bear the risk just as if there was emptio perfecta. That is good sense and justice, though not necessary to the decison of the present case " (m). The rule of the Civil law was Mora dehiioris non debet esse creditori damnosa. Pothier, in discussing it, says : " If I sell you a horse, and make default in delivery, and it is struck by lightning in my stables, the loss falls on me, because the accident would not have happened if I had duly delivered the horse. But if the horse dies from a disease, which would have killed him in any case, I am not liable " (n). The distinction drawn by Pothier has been adopted by arts. 1302, 1303 of the French Civil Code. When the seller remains in the possesssion of the goods after the property in them has passed to the buyer, or when the buyer gets possession of the goods, before the property passes, as in the case of goods on trial, it seems clear the party in possession is in each case a bailee. But there appears to be no decision defining the nature of such bailment. Pothier has discussed the position of the seller at some length (o). Until the time for delivery has arrived, he must use ordinary diligence in taking care of the thing sold. In contractibus in quibus utriusque eontrahentis utilitas versatur, levis culpa, non etiam levissima, prsestatur. But, if the buyer makes default in taking delivery, the seller is only liable for dolus, which includes culpa lata or gross negligence. See, too, French Civil Code, arts. 1136-1138. Lord Blackburn's citation of the maxim Res peril domino is a Kttle mis- leading as to the Roman law, because the law of sale formed an exception to the general rule. By Boman law the property in goods did not pass untU delivery, but as soon as the parties were agreed on the specific article, and the price, there was an emptio perfecta. The risk, unless otherwise agreed, passed to the buyer though the property did not. Gum autem emptio et venditio contracta sit periculum, rei venditx statim, ad emptorem pertinet tametsi adhuc ea res emptori tradita non sit (p). The rule of Roman law was followed in Scotland, and it may be stated broadly that when the facts would show a bargain and sale in England passing the property and risk, in Scotland the buyer acquired a jus ad rem specificam, though not the property, and the risk would be in him. Thus by different routes English and Scotch law arrived at practically the same results (?). The Act now lays down a uniform rule for both countries. (to) Martineau v. Kitching (1872), L. B. 7 Q. B., at pp. 454, 456 (sugar) ; discussed and approved. The Parchim, [1918] A. C. 159, at p. 168, P. C. (n) Contrat de Vente, No. 58 ; c/. Moyle's Sale in the Civil Law, p. 90. (o) Contrat de Vente, Nos. 53-55 ; cf. Moyle's Sale in the Civil Law, p. 87. (jp) Moyle's Justinian, p. 420 ; Pothier, Contrat de Vente, Nos. 307-309. (2) Bell's Prin. Law of Scotland, §§ 87,88. 64 THE SALE OF OOODS ACT, 1893. This section is supplemented by the special provisions of sects. 32 (2), (3), and 33, post, pp. 85, 88, which deal with particular cases ; namely, goods ^ent by carriers by land or sea, and inevitable deterioration due to transit. As property and risk are separable, it follows that property and insurable interest may be separable (r). Accessories or accretion. — The converse of the rule resperit domino also holds good, and any fruits or increase of the thing sold belong prima facie to the party who has the property in it. " Any calamity befalling the goods after the sale is completed must be borne by the purchaser, and, by parity of reasoning, any benefit to them is his benefit, and not that of the vendor " (s). Transfer of Title. 21. — (1.) Sale by person not the owner. — Subject to the provisions of this Act (t), where goods are sold by a person who is not the owner thereof, and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had (u), unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell (x). (2.) Provided also that nothing in this Act shall affect — (a.) The Provisions of the Factors Acts, or any enactment (r) As to the insurable interest of seller and buyer respectively, see Anderson v. Morice (1876), 1 App. Cas. 713 ; Colonial Ins. Go. v. Adelaide Mar. Ins. Co. (1886), 12 App. Cas., at p. 135; Chalmers' Marine Insurance Act, 1906, notes to §§ 5 and 6. (s) Sweeting v. Turner (1871), L. R. 7 Q. B. 310, at p. 313, per Blackburn, J. (sale by auctiop) ; French Civil Code, arts. 1614, 1615 ; Dig. 19, 1, 18 ; cf. The Vindohala (1887), 13 P. D., at p. 47,:and cf. Laws of England, vol. xxv., pp. 171, 172, as to goods having a potential existence. (t) See sects. 22 to '2,5, 'post, pp. 67-72. (u) For principle see City Bank v. Barrow (1880), 5 App. Cas., at p. 677, H. L. ; Colcmial Bank v. WMnney (1886), 11 App. Cas. 426, at pp. 435, 436, per Lord Blackburn. For iUustrations, see Cooper v. Willomatt (1845), 1 C. B. 672 ; 14 L. J. C' P. 219 (fraudulent sale by bailee) ; Lee v. Bayes (1856), 18 C. B. 599 ; 25 L. J. C. P. 249 (stolen goods sold by auction) ; Consolidated Co. v. Curtis d Son (1892), 1 Q. B. 495, 498 (goods included in bill of sale sold by auction) ; the TeUgrapho (1871), Ii. K. 3 P. C, at p. 685 (goods taken piratically) ; Hollins v. Fowler (1875), L. B. 7 H. L. 757 (sale by broker) ; Gundy v. Liiidsay (1878), 3 App. Cas. 459 (goods obtained by fraud and resold) ; Helby v. Matthews, [1895] A. C. 471 (wrongful disposition by hirer under hire purchase agreement) ; cf. Indian Contract Act, 1872, s. 108. (s) Pickard v. Sears (1837), 6 A. & E. 469 ; Gregg v. Wells (1839), 10 A. & E. 90 ; Freeman v. Cooke (1848), 2 Exch. 654 ; 18 L. J. Ex. 114 ; Knights v. Wiffen (1870), L. R. 5 Q. B. 660 ; cf. Seton v. Lafone (1887), 19 Q. B. D. 68, C. A. ; Weiner v. Gill, [1905] 2 K. B. at p. 181, and [1906] 2 K. B., at p. 582, C, A. ; and note, ante, p. 10, TRANSFER OF TITLE (SECT. 21). 65 enabling the apparent owner of goods to dispose of them as if he were the true owner thereof iy) ; (6.) The Yadidity of any contract of sale under any special common law or statutory power of sale, or under the order of a court of competent jurisdiction (a). Illustrations. (1) A, a timber merohant, instructs the dock company with whom his timber is warehoused to accept delivery orders signed by his clerk. The clerk has a limited authority to sell to known customers. The clerk in an assumed name sells some of the timber to B, who knows nothing of A, or of the clerk under his real name. The clerk carries out the fraud by giving the dock company delivery orders into his assumed name, and then in that name giving delivery orders to B. A can recover the value of the timber from B (6). (2) The high bailiff of a County Court seizes certain goods under a warrant of execution. X, who is the true owner, claims them, but does not make the required deposit. The high bailiff sells them, and the price is duly paid into court. The purchaser acquires a good title under sect. 156 of the County Courts Act, 1888 (c). (3) A cotton broker innocently buys certain bales of cotton from a person who has fraudulently obtained them, thinking they may suit an old customer. He afterwards seUs and delivers the cotton to that customer. He is liable to the true owner for the conversion of that cotton {d). (y) See the Factors Act, 1889, post, 146 ; and the Paotora (Scotland) Act, post, p. 162 ; and see the Bills of Lading Act (18 & 19 Vict. c. Ill) ; the Bankruptcy Act, 1914 (4 & 5 Geo. 5, c. 59), s. 38 (reputed ownership), and for certain purposes the Bills of Sale Act, 1878 ; cf. Indian Contract Act, 1872, s. 108. (a) As to pawnee, see Martin v. Beid (1862), 31 L. 0. J. P. 126, at p. 128, per Willes, J.; Pigot v. Cubley (1864), 83 L. J. C. P. 184. As to carrier, see Oreat Northern Railway v. SwiffieU (1874), L. R. 9 Ex. 152 (goods not claimed) ; Sims & Co. V. Midla/nd Railway (1912), 18 Com. Gas. 44 (perishable goods). As to distrainor, see Woodfall's Landlord and Tenant, ed. 19, p. 570. As to sheriff, see Doe V. Donston (1818), 1 B. & Aid. 230 (sale after expiration of ofB.ce) ; cf. Batchelor v- Vyse (1884), 4 M. & So. 552 (excessive sale) ; Manders v. Williams (1849), 4 Exch. 889 ; 18 L. J. Ex. 437 (goods on sale or return). As to master of ship, Page v. Cowasjee (1866), L. R. 1 P. C, at p. 144; and Kaltenbach v. Mackenzie (1878), 3 0. P. D., at p. 473. As to order of Court, see R. S. C, Or. L. rule 2. As to goods left with inn- keeper, see the Innkeepers Act, 1878 (40 & 41 Vict. u. 38) and Chesham v. Beresford Hotel (1913), 29 T. L. R. 584. As to executor or administrator, see Williams on Executors, tit. " Sale," and Attenborough v. Solomon, [1914] A. C. 76, 63, H. L. As to trustee in bankruptcy, see as. 55, 56 of the Bankruptcy Act, 1914 (4 & 5 Geo. 5, o. 69). (6) Fa/rguharson- Brothers v. King & Co., [1902] A. C. 325, H. L. (c) Goodlock V. Cousins, [1897] 1 Q. B. 558, 0. A. (d) Holms V. Fowler (1875), L. B. 7 H. L. 157, but note sect. 28 post, as to voidable titles, C.S.G. F 66 THE SALE OF GOODS AGT, 1893. Sub-sect. (1). — " The general rule of |law," says Willes, J., " is undoubted, that no one can transfer a better title than he himself possesses. Nemo dat quod nan habet " (e). As to seller's warranty of title, etc., see sect. 12, ante. In a case under the Factors Act, 1842, Blackburn, J., says : " At common law a person in possession of goods could not confer on another, either by sale or by pledge, any better title to the goods than he himseM had. To this general rule there was an exception of sales in market overt (sect. 22), and an apparent exception where the person in possession had a title defeasible on account of fraud (sect. 23, post, p. 69). But the general rule was that, to make either a sale or a pledge valid against the owner of the goods sold or pledged, it must be shown that the seller or pledger had authority from the owner to^ell or pledge, as the case may be. If the owner of the goods had so acted as to clothe the seller or pledger with apparent authority to sell or pledge, he was at common law precluded as against those who were induced bond fide to act on the faith of that apparent authority, from denying that he had given such an authority, and the result' as to them was the same as if he had really given it. But there was no such preclusion as against those who. had notice that the real authority was limited " (/). The rule of the civil law seems to have been in accord with the common law. Nemo plus juris in alium, transferre potest quam ipse habet ; or as Ulpian puts it, with special reference to the law of sale, Bern, alienam, distrahere quern, posse nulla dubitatio est nam emptio est et venditio ; sed res emptori auferri potest. See Pothier, Contrat de Vente, No. 7. By art. 1599 of the French Civil Code, " La vente de la chose d'autrui est nuUe " ; but this provision must be read subject to art. 2279, which provides that, " En fait de meubles possession vaut titre." There are special provisions about lost or stolen goods, but, with these exceptions, it seems that an innocent purchaser of goods is protected. No title by finding. — The finder of lost goods acc[uires no title as against the true owner, and can give none except by sale in market overt. " If a person leaves a watch or a ring on a seat in the park or on a table at a cafe, and it ultimately gets into the hands of a bond fide purchaser, it is no answer to the true owner to say that it was his carelessness, and nothing else, that enabled the finder to pass it off as his own " (g). The saying that " findings are keepings '' is not a maxim of the law. A person who finds goods and converts them to his own use, having reason to believe that the owner can be discovered, may be guilty of larceny (h). Sub-sect. (2). — Special power. — One person is sometimes invested by law with a (e) Whistler v. Forster (1863), 32 L. J. C. P. 161, at p. 164 (cheque). ( / ) Cole v. North Western Bank (1875), L. B. 10 C. P. 354, at p. 862 ; approved Colonial Bank v. Whinney (1886), 11 App. Oas. 426, at pp. 435, 436 (reputed owner- ship) ; cf.iCity Bank v. Barrow (1880), 5 App. Cas., at p. 677, as to Roman and Old Prenoh law, and Canadian law. (g) Farquharson Brothers v. King & Co., [1902] A. C, at p. 336. But a finder may mamtain trover against a third person, Boscoe, N. P., ed. 17, p. 958. {h) B. V. Thurborn (1849), 1 Den. C. C. 387 ; as to what amounts to conversion by finder, see Hollins v. Fotoler (1875), L. II. 7 H. L. at p. 766. TRANSFER OF TITLE (SECT. 22). 67 special power to dispose of another person's property. For instance, a pawn- brokerlmay sell unredeemed pledges ; and a landlord, who has duly distrained for rent, may sell the goods so distrained. So, too, the master of a ship may, in case of necessity, dispose of the ship and cargo. See the authorities collected in the footnote to (2) (6), ante, p. 65. Co-owners.— The law relating to co-owners, who are not partners, is rather obscure. Probably, a co-owner, in the absence of estoppel or authority from the other co-owners, could only transfer his own share (i). If one co-owner sells and retains the whole price, the remedy of the others at law against him is doubtful, unless the sale confers a good title to the whole. If co-owners cannot agree as to the possession or use of the goods owned in common the only remedy is to apply in equity for an injunction or for a receiver and sale (fe). In a recent case A sold a half -share in a gold snufl-box to B, on the terms that A was to retain possession till sale on joint account, and afterwards handed the box to B to sell it at Christie's. B, instead of selling, deposited the box with H, to whom he owed money. Held that A could recover the box from H (I). It seems that if two or more persons agree to purchase goods on joint account, notice to the one who effects the purchase of any defect in title of the seller, affects the others also (m). " A partner, co-adventurer, agent, or any other person in any position of trust must make no profit out of his position without the knowledge of his principals, and in particular cannot sell his own goods to his principals without fully disclosing his own personal interest in the matter " (»). As to co-adventurers in Scotland, see Green's Encyclopsedia of Scots Law, tit. " Co-adventurers." 22. — (1.) Market overt. — Where goods are sold in market overt, according to tlie usage of the market, the buyer acquires a . good title to the goods, provided he buys them in good faith and with- out notice of any defect or want of title on the part of the seller (o). (i) Cf. Ex p. Barnett, Re Tamplin (1890), 7 Morrell, 70. As to partners, who primd facie are agents for each other, see the Partnership Act, 1890 (S3 & 54 Vict, e. 39) ss. 5 and 6. Note the provisions as to joint owners in sect. 108 of the Indian Contract Act, 1872. {k) Lindley on PartnersMp, 7th ed., pp. 86-38. There are very special conditions as to ships. (Z) Nyberg v. Handelaar, [1902] 2 Q. B. 202, C. A. (to) Oppenheimer v. Frazer, [1907] 2 K. B. 60, 76, C. A. (n) Kuhlivz v. Lambert Bros., Ltd. (1913), 18 Com. Cas. 217, at p. 226 (oo- adventure in sale of coal to Austrian Government). (o) The Case of Market Overt (1596), 5 Coke R. 83 b ; Tudor's Merc. Oases, 3rd ed., p. 274, and notes ; Crane v. London Dock Co. (1864), 33 L. J. Q. B. 224 ; see pet Blackburn, J., at p. 229, as to the usage of the market ; cf. Vilmont v. Bentley (1886), 18 Q. B. D. 322, at p. 331. Cf. Law Quarterly Review, 1915, p. 270 as to the City o£ London. 68 THE SALE OF GOODS ACT, 1893, (2.) Nothing in this section shall affect the law relating to the sale of horses (p). (3.) The provisions of this section do not apply to Scotland {cj). SiA-sed. (1). —See " good faith " defined by sect. 62. The rules of market overt do not apply in Soothmd or Wales (r), or the United States, and in England they only apply to a limited class of retail transactions. All shops in the city of London are market overt, for the purposes of their own trade, but a wharf in the city is not market overt (s), and a sale by sample is not within the custom, because the whole transaction must take place in the open market, and not merely the formation of the contract (t). So, too, a sale of jewellery to a tradesman in his showroom is not within the custom (u). Nor is the sale of a stolen watch in a first floor auction room where unredeemed pledges are sold periodically (x). Outside the city of London markets with the custom of market overt may exist either by grant or prescription, but it seems that the custom does not apply to a market established by a local Act (y). Sect. 24 is not in the nature of an exception or proviso to this section. When stolen goods are sold in market overt, the property passes to the buyer, though on the conviction of the thief the property revests in the original owner by force of the statute («). Hence an intermediate purchaser incurs no liability (a) ; so, again, the buyer who is dispossessed cannot charge for the keep of the goods, for they were his own till the statute revested them in the original owner (6). Suh-sect. (2). — The 2 & 3 Phil, and Mar. o. 7 (an Act against the buying of stolen horses) and the 31 Eliz. c. 12 (an Act to avoid horse stealing) lay down complicated regulations for the sale of horses in fairs or markets. These regulations are never observed in practice, the effect therefore of the statutes is (p) See the 2 & 3 Phil. & Mar. o. 7, and 31 Eliz. c. 12 ; also Moran v. Pitt (1873), 42 L. J. Q. B. 47. The practical effect of these Acts is to take horses cut of the rule as to market overt. (2) See Todd v. Armour (1882), 9 E. 902, as to conflict of laws. For Scottish cases as to horses, see Green's Encyclopcedia of Scots Lmv, tit. " Horses." (r) See 34 & 35 Hen. 8, c. 26, sect. 47. (s) Wilki/nson v. King (1809), 2 Camp. 335. (t) Crane v. London Dock Co. (1864), 83 L. J. Q. B. 224 (drugs sold by sample). (w) Sa/rgreave v. Spimk, [1892] 1 Q. B. 25. (x) Clayton v. Leroy (1911), 104 L. T. 419, reversed on another ground 2KB' [1911] 1031, C. A. ' ■ •> {y) Cf. Moyce v. Newington (1878), 4 Q. B. .T)., at p. 34, per Ooekburn, O.J. ; and see Lee v. Bayes (1856), 18 C. B. 599; 25 L. J. C. P. 249 (sale by auction at horse repository). (0) The Larceny Act, 1916 (6 & 7 Geo. 5, c. 50), s. 45. Cf. York Street Flax Spinnmg Co. v. Harbison, [1911] 45 Irish L. T. B. 248 ; and see note, post, p. 71. (a) Horwoodiv. Smith (1788), 2 T.R. 750 ; cf. Vilmont v. Bentley (1886), 18 Q B B 322, at p. 331. - ' ■ • v (6) Walker v, Matthews (1881), 8 Q. B. D. 109. TBANSFER OF TITLE (SECT. 23). 69 to remove horses out of the category of things which can he sold ia market overt. When the Sale of Goods Bill left the House of Lordslit was proposed to -repeal these Acts, reproducing their provisions in simpler form in a Schedule- In the Select Committee in the Commons it was decided to abolish the anomalous rule of sale in market overt. It seemed absurd that the right to a stolen watch should depend on whether it had been sold in the Strand or in Fleet Street. In Committee of the whole House the rule as to sales in market overt was restored, but the schedule was not re-instated. Consequently the Acts as to the sale of horses had to be omitted from the repeals. 23. Sale under voidable title. — When the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale, the buyer acquires a good title to the goods, provided he buys them in good faith and without notice of the seller's defect of title (e). Illustration. B induces A to send him jewellery on appro, by falsely representing that he has a good customer for it. He then pledges the goods with C. B then induces A to invoice the goods to him, representing that G req[uires credit. — A cannot avoid the sale to B and recover the goods from C unless he can affect C with notice of the fraud (d). See " good faith " defined by sect. 62, post, p. 141. Many of the cases covered by this section would also fall within sect. 25, post, p. 72. Where goods have been obtained by means amounting to larceny, the thief has no title, and can give none, except by selling in market overt ; but where goods have been obtained by fraud the person who has so obtained them may either have no title at all, or a voidable title, according to the nature of the transaction. If the nature of the fraud be such that there never was a contract between the parties, as, for instance, if A obtains goods from B by falsely pretending to be X., then the person who so obtains the goods has no title at all, and can give none (e). (c) White V. Garden (1851), 10 C. B. 919 ; 20 L. J. 0. P. 166 ; Kingsford v. Merry (1856), 26 L. J. Ex. 166, reversed on another ground, 26 L. J. Ex. 33; Peasey. Gloahec (1866), L. R. 1 P. C. 219, at pp. 229, 230 ; Cundy v. Lindsay (1878), 3 App. Cas. 459, at p. 464, per Lord Cairns ; Pollock on Possession, pp. 203, 204. (d) Whitehorn Brothers v. Davison, [1911] 1 K. B. 463, 0. A. As to seller's right to avoid a fraudulent purchase as against the buyer's trustee in bankruptcy, see Tilleyv. Bowman, Ltd., [1910] 1 K. B. 745. \e) Siggons v. Burton (1857), 26 L. J. Ex. 342 ; Hardmann v. Booth (1863), 32 L. J. Ex. 105 ; Cundy v. Lindsay (1878), 3 App. Oas. 459; Pollock on Possession, p. Ill ; Ex p. Barnett (1876), 3 Oh. D. 123 ; c/. Ex p. Ward, [1905] 2 K. B. 465 (repudia- tion by seller of fraudulent contract after notice of act of bankruptcy by buyer). But in Wool/ Phillips v. Brooks (1919), 24 Com. Cas. 263, Horridge, J., refining on 70 THE BALE OF GOODS ACT, 1893. But if the person defrauded really intended to part with the property in and possession of the goods, although induced to do so by fraud, there is a contract which he may affirm or disaffirm at his election (/). Hence, the person who obtains the goods has a voidable title, and can give a good title to an iitnocent purchaser while the matter is in suspense (g). " If," says Lord Cairns, " the chattel has come into the hands of the person who professed to sell it, by a de facto contract, that is to say, a contract which has purported to pass the property to him from the owner of the property, then the purchaser will obtain a good title, even although afterwards it should appear that there were circum- stances connected with that contract which would enable the original owner of the goods to reduce it, and set it aside " (h). As to the distinction between larceny by trick and false pretences, see note to next section. 24. — (1.) Revesting of property in stolen, &c., goods, on conviction of offender. — Where goods have been stolen and the offender is prosecuted to conviction, the property in the goods so stolen revests in the person who was the owner of the goods, or his personal representative notwithstanding any intermediate dealing with them, whether by sale in market overt or otherwise (i). (2.) Notwithstanding any enactment to the contrary, where goods have been obtained by fraud or other wrongful means not amounting to larceny (k), the property in such goods shall not revest in the person who was the owner of the goods, or his personal representa- tive, by reason only of the conviction of the offender. (3.) The provisions of this section do not apply to Scotland. The rule, that on the conviction of the thief the property in stolen goods revested in the original owner, is as old as the 21 Hen. 8, c. 11, which was the general rule, held that there is a de facto contract if A, pretending to be X, gets goods from B in a personal interview, for the person contracted with is then " identified by sight and hearing" — aliter it seems if A had represented himself as X's partner, or had communicated with B by writing or telephone. The real question is whether the parties to the contract were ad idem, and the point may perhaps be further considered, (/) Clough v. Land, and N. W. Bailtoay (1871), L.'B. 7 Ex. 26; cf, Morrison v. Univ. Ins. Co. (1873), L. K. 8 Ex., at pp 203, 204. (9) Croft V. Lumley (1856), 6 H. of L. Gas., at p. 705, Bramwell, B. (h) Gundy v. Lindsay (1878), 3 App. Gas., at p. 464. (i) Horwood v. Smith (1788), 2 T. E. 750 ; Scattergood v. Sylvester (1850), 15 Q. B. 506; 19 L. J. Q. B. 447. (h) It is not easy to distinguish larceny by trick from obtaining goods by false pretences ; see per Moulton, L. J., and Kennedy, L.J., in OppmTieimer v. Frazer, [1907J 2 K, B. 50, C. A., at pp. 72, 77. TRANSFER OF TITLE (SECT. 24). 71 perhaps declaratory. The effect of sect. 100 of the Larceny Act, 1861 (24 & 25 Vict. c. 96), was to extend the rule to all ofEences under that Act. The operation of the extended rule to cases where goods had been obtained by false pretences, but under a de facto contract, was anomalous, and was regretted by the Lords in Bently v. Vilmont (I). Sub-sect. (2) was accordingly introduced as an amend- ment in Committee. Its effect was to restore the old state of the law and to override sect. 100 of the Larceny Act, 1861 (and sect. 27 (3) of the Summary Jurisdiction Act, 1879), so far as it related to offences other than offences amounting to larceny. Sect. 100 of the Act of 1861 is now repealed by the Larceny Act, 1916 (6 fe 7 Geo. 5, 0. 50) and re-enacted in different terms by sect. 45 of the latter Act. The provisions of the Sale of Goods Act are expressly saved, and it is enacted that where goods have been obtained by fraud or other wrongful means not amounting to stealing, the property in the goods shall not revest in the person who was the owner by reason only of the conviction of the offender, see post, p. 172. When goods are obtained by a fraudulent trick, it is not always easy to distinguish false pretences from larceny by trick. The test seems to be this : If, as the result of the trick, the person defrauded intends to part with both the possession and the property in the goods, the offence is false pretences ; but if he is induced merely to part with the possession of the goods, and does not intend to part with his property therein, the offence is larceny by trick (m). By sect. 6 of the Criminal Appeal Act, 1907 (7 Edw. 7, c. 23), in the case of convictions on indictment, the operation of this section (unless the Judge otherwise orders) is suspended for ten days or pending the determination of the appeal, if an appeal is brought. If the conviction is quashed the section does not take effect, see post, p. 171. By sect. 62 of this Act, jpos^, p. 136, the expression " goods " does not include money. But a rare current coin, e.g. a five-pound gold piece, bought as a curiosity, may be treated as goods and not as money (n). ~It is to be noted that the rule laid down in this section is not strictly an exception to the rule laid down in sect. 22 {ante, p. 67). By a sale in market overt, the property in the goods reaUy vests in the buyer, though on conviction of the offender it revests in the original owner by force of the statute. Hence, if the goods pass through several hands, intermediate parties ai"e not guilty of a conversion. As a general rule, no one can give a better title to goods than he has got, see sect. 21, ante. This section is only required in the exceptional {I) Vilmont v. Bentley (1886), 18 Q. B. D. 322, 0. A. (merchandise); affirmed Bentley v. Vilmont (1887), 12 App. Gas. d71, overruling Moyce v. Newington (1878), i Q. B. D. 32 (sheep obtained by false pretences). (to) Whitehom Brothers v. Damson, [1911] 1 K. B. 468, 0. A., see at pp. 479 and 485 ; as to the proper direction to the jury when larceny by trick is charged, see B. V. miliard (1918), 9 C. 0. A. Rep. 171 ; cf. Mehta v. Sutton (1918), 30 T. L. B. 17, C. A. (larceny by trick in France, subsequent pledge in England) ; and see generally Archbold, Cri/m. Plead, and Evidence, ed. 25, p. 499. (n) Moss V. Hancock, [1899] 2 Q. B. 111. 72 THE SALE OF QOOI)S ACT, 1893. cases where a good title to stolen goods is obtained by purchase in market overt " or otherwise," e.g. by a purchase abroad, valid according to the lex lod. In Payne V. Wilson it was held under sect. 2 of the Factors Act, 1889, that a title to stolen goods was paramount to the right of restitution under this section, but on appeal the judgment was abandoned on the ground that the facts did not bring the case under the Factors Act (o). Sect. 45 of the Larceny Act, 1916 (post, p. 172), enables the convicting Court to make an order for restitution ; but, as the effect of the statute is to revest the property, the original owner has his ordinary legal remedies without resorting to this special one. By art. 2279 of the French CivU Code, lost or stolen goods may be recovered by the true owner at any time within three years, but by art. 2280, if the actual possessor obtained them at a public auction or by a sale in the ordinary way of business, the original owner can only get them back on paying the possessor the sum he gave for them. 25. — (1.) Seller in possession after sale. — Where a person, having sold goods, continues or is in possession of the goods, or of the documents of title to the goods the delivery or transfer by that - person, or by a mercantile agent acting for him, of the goods oii documents of title under any sale, pledge, or other disposition thereof, to any person receiving the same in good faith and without notice of the previous sale, shall have the same effect as if the person making the delivery or transfer were expressly authorised by the owner of the goods to make the same. (2.) Buyer in possession, — Where a person, having bought or agreed to buy goods, obtains, with the consent of the seller, possession of the goods or the documents of title to the goods, the delivery or transfer by that person, or by a mercantile agent acting for him, of the goods or documents of title, under any sale, pledge, or other disposition thereof, to any person receiving the same in good faith and without notice of any lien or other right of the original seller in respect of the goods, shall have the same effect as if the person making the delivery or transfer were a mercantile agent in possession of the goods or documents of title with the consent of the owner (p). (o) Payne v. Wilson, [1895] 1 Q. B. 653, reversed, [1895] 2 Q. B. 537, 0. A. (goods under hire-puiphase agreement). (p) Cf. Bradley v. Bcmsay & Co. (1912), 106 L. T. 771, 0. A. (goods on appro., efiects of consent judgment), and note that a person who has an option, to buy is not a person who has agreed to buy ; Belsize Motor Supply Co. v. Cox, [1914] 1 K. B. 244. TRANSFER OF TITLE (SECT. 25). 73 (3.) In this section the term " mercantile agent " has the same meaning as in the Factors Acts. Ill^ls^ra^ions. (1) A sells certain copper to B, forwarding' biU of lading indorsed in blank, and bill of exchange for acceptance. B, who is insolvent, does not accept the bill of exchange, but transfers the biU of lading to X in fufilment of a contract to supply him with copper. X in good faith pays the price. A cannot stop the copper in transitu (q). (2) A delivers a motor cab to B under a hire-purchase agreement. The hire amounts to £374 payable by 24 monthly instalments, and B may purchase the cab at any time within the two years by paying a further sum of £100. B pledges the cab with C, being at the time £58 in arrears with his instalments. A can sue C for the conversion of the cab, for B is not a person who has " agreed to buy " the cab, he has mex-ely an option to purchase (r). (3) B agrees to buy a plot of land from A, and also a motor car if his solicitor approves the title to the land. B gets the motor car, does not pay for it, but sells it to a bonafide purchaser. Subsequently B's solicitor disapproves the conditions of sale of the land. The purchaser of the motor car gets a good title thereto, for B " agreed to buy it " (s). By sect. 62, post, p. 135, " Factors Acts " means the Factors Act, 1889, and the Factors (Scotland) Act, 1890, which are set out, post, pp. 146-162, and " document of title " has the same meaning as in those Acts: For definitions of " documents of title " and " mercantile agent " by the Factors Acts, see post, p. 147. As to resale by " unpaid seller " see sect. 48 (2), post. Though an option to buy does not come within sub-sect. (2), a conditional agreement to buy does come within it (t) . This section reproduces, with a modification (w), sects. 8 and 9 of the Factors Act, 1889. See post, pp. 156, 157, where the effect of these provisions is considered. In a case where wine stored in a warehouse was sold, and the seller after- wards pledged the wine to the warehouseman, who had no notice of the sale, North, J., held that the warehouseman acquired no title under sub-sect. (1), (g) Cdhn\. Pockett's Bristol Channel Co., [1899] 1 Q. B. 6i3, C. A. (r) Belsize Motor Supply Co. v. Cox, [1914] 1 K. B. 244. As C has an interest in the cab the measure of damage is not the fuU value, but only the arrears and purchase money. Distinguish WMteley v. Bill, [1918] 2 K. B. 808, 0. A., where a hire-purchase agreement, before default, was held to be assignable. (s) Ma/rten v. Whale, [1917] 2 K. B. 480, C. A. (t) lUd. (u) i.e. after " sale, pledge, or other disposition thereof," in sub-sects. (1) and (2) the further words, " or under any agreement for sale, pledge, or other disposition thereof," are omitted. The change was made in the Lords Committee. 74 TEE SALE OF GOODS ACT, 1893. for as between the particular parties, the seller was not in possession when he efBected the pledge (a;). It was originally intended to repeal the sections which are here reproduced, but they were omitted from the repeals at a late stage for future consultation. 26.— (1.) Effect of writs of execution.— A writ of fieri facias or other writ of execution against goods shall bind the property in the goods of the execution debtor as from the time when the writ is delivered to the sheriff to be executed ; and, for the better manifestation of such time, it shall be the duty of the sheriff, without fee, upon the receipt of any such writ to endorse upon the back thereof the hour, day, month, and year when he received the same. Provided that nonsuch writ shall prejudice the title to such goods acquired by any person in good faith and for valuable con- sideration, unless such person had at the time when he acquired his title notice that such writ or any other writ by virtue of which th^ goods of the execution debtor might be seized or attached had been delivered to and remained unexecuted in the hands of the sheriff (y). (2.) In this section the term "sheriff" includes any officer charged with the enforcement of a writ of execution (z). (3.) The provisions of this section do not apply to Scotland. The first paragraph of this section reproduces sect. 15 (a) of the Statute of Frauds (29 Car. 2, c. 3), with the addition that the sheriff is required to in- dorse the hour on the writ, but this accords with the practice. The second paragraph reproduces sect. 1 of the Mercantile Law Amendment Act, 1856 (19 & 20 Vict. c. 97). Both these enactments are repealed, see post, p. 145. It has been held that the words, " shall bind the property iu the goods," do not prevent the property from passing by the sale, but constitute the execution a charge upon the goods (6). The registration of a Us pendens does not affect goods (c). (aj) Nicholson v. Harper, [1895] 2 Ch. 415. (y) As to the origin of this provision, see 2nd Beport of the Mercantile Law Commission, 1855, p. §. (z) Of. the definition of " sheriff " in s. 167 of the Bankruptcy Act, 1914 (4 & 5 Geo. 5, c. 59). (a) Sect. 15 of the Eevised Edition is commonly cited as sect. 16. (6) Woodland v. Fuller (1840), 11 A. & E. 849 ; see at p. 867. (c) Wigram v. Buckley, [1894], 3 Oh., at p. 492, C. A. TRANSFER OF TITLE (SECT. 26). 75 As to practice, see E. S. C, Ord. XLIII. and notes in Annual Practice. County CouTts. — In the application of this section to County Courts, where the high bailifE corresponds with the sheriff, "the time when the writ is delivered to the sheriff " must be construed as meaning the time when, applica- tion is made to the registrar for the writ, if the registrar and high bailifE (as is usually the case) be the same person (d). (d) Murgatroyd v. Wright, [1907] 2 K. B. 333. As to execution issued from one County Court to another, see Birstall Candle Co. v. Daniells, [1908] 2 K. B. 254. ( 76 ) PART III. Perfoemance of the Contract. 27. Duties^ of seller and buyer. — It is the duty of the seller to deliver the goods, and of the buyer to accept and pay for them, in accordance with the terms of the contract of sale (a). See " delivery " defined, post, p. 134. " In every contract of sale," says Watson, B., " there is involved a contract on the one side to accept, and on the other to deliver.'' " If," says Martin, B., in the same case, " one buys goods of another in the possession of a third party, the vendor undertakes that they shall be delivered in a reasonable time. ... If I buy a horse of you in another man's field, it is part of the contract that if I go for the horse I shall have it " (6). The general obligation to deliver may, however, be modified by the terms of the contract. As Lord Blackburn says, there is no rule of law to prevent the parties from making whatever bargain they please (c). Thus, where the seller gives the buyer a delivery order for the goods it may be a condition that the order should be given up to the warehouseman before the buyer can get the goods (d). Again, a man with his eyes open may buy the chance of obtaining goods and not the goods themselves ; see sect. 5 (2), ante, p. 25 (sale of expectancy), and sect. 12, ante, p. 38 (warranty of title). French law, like Civil Law, puts a stricter ipterpretation on the general obligation of the seller to deliver than English law does (e). Whether the seller be the owner of the goods or not. (a) Buddie v. Green (1857), 27 L. J. Ex. 33 (slates at a wharf) ; Woolfe v. Home (1877), 2 Q. B. D. 355 (sale by auction) ; French Civil Code, arts. 1603, 1650. (6) Buddie v. Green, supra ; cf. Wood v. Baxter (1883), 49 L. T. (N. S.) 45. "Whichever party," says Lord Halsbury, "was the actor, and is complaining ol a breach of contract, is bound to show as a matter of law that he has performed all that was mcident to his part of the concurrent obligations," Forrest v, Avamayo (1900), 9 Asp. Mar. Cas. 134, C. A. (c) Calcutta Go. v. Be Mattos (1863), 32 L. J. Q. B., at p. 328. See the passage cited at length, post, p. 189 ; and see per Lord Esher in Honck v. Muller (1881), 7 Q. B. D., at p. 103, C. A. {d) Bartlett v. Holmes (1853), 22 L. J. C. P. 182 ; see, too, Salter v. Woollams (1841), 2 M. & Gr. 650, as explained in Benjamin on Sale, 5th ed., p. 693; Bagueley V. Hawley (1867), L. R. 2 C. P. 625, which is of doubtful authority (boiler set in brickwork). (e) Pothier, Contrat de Vente, Nos. 42-48 ; French Civil Code, arts. 1603 et seq. PERFORMANCE OF THE CONTRACT (SECT. 28). 11 he is bound to deliver. Haotenus tenetur id rem em/ptori habere liceat non etiam ut ejus faciat. As sale is a consensual contract, the parties may by agreement make the price payable how, when, and where they please ; and when the time of payment arrives, the parties may agree that the debt shall be discharged by any means which amount to an accord and satisfaction. See further note to sect. 49. 28. Payment and delivery are concurrent conditions. — Unless otherwise agreed (/), delivery of the goods and payment of the price are concurrent conditions, that is to say, the seller "must be ready and willing to give possession of the goods to the buyer in exchange for the price, and the buyer must be ready and willing to pay the price in exchange for possession of the goods ((/). Illustration. Sale of hops under c.i.f . contract to be shipped to Hull, " terms net cash." The seller tenders the shipping documents to the buyei', while the goods are at sea. The buyer must pay the price, without waiting for the arrival and examination of the goods {h). "Where goods are sold," says Bayley, J., "and nothing is said as to the time of delivery or time of payment . . . the seller is liable to deliver them whenever they are demanded upon payment of the price, but the buyer has no right to have possession of the goods till he pays the price. ... If goods are sold on credit, and nothing is agreed upon as to the time of delivering the goods, the vendee is immediately entitled to the possession, and the right of possession and the right of property at once vest in him. But the right of possession is not absolute ; it is Kable to be defeated if he becomes insolvent before he obtains possession " (i). The language of Bayley, J., might be taken to imply that in cash sales payment was a condition precedent to delivery, but a reference to the cases cited in the footnote to the section shows that payment and delivery have always been considered concurrent conditions. (/) As, for instance, by a c.i.f. contract, see E. Clemens Horst & Co. v. Biddell Brothers, [1912] A. 0. 18, 22 H. L. ; Orient Co. v. Brehhe, [1913] 1 K. B. 513. See further notes to sect. 32 (3.). (g) Morton v. Lamh (1797), 7 T. R. 125 ; Bawson v. Johnson (1801), 1 East, 201 ; Wilhs V. AtMnson (1815), 1 Marshall, 412 ; Pickford v. Grand Junction Railway (1841), 8 M. & W., at p. 378 ; of. Busseyy. Barnett (1842), 9 M. & W. 312 ; Bankart v. Bowers (1866), L. K. 1 0. P. 484 ; PoAjnter v. James (1867), L. B. 2 C. P. 348. (h) E. Clemens Horst & Co. v. Biddell Brothers, [1912] A. C. 18, H. L., approving the judgment of Kennedy, L.J., 1 K. B. [1911] 934, 0. A. (action by assignee of contract, but nothing turned on this). (i) Bloxam v. Sanders (1825), 4 B. & C. 941, at p. 948 ; cf. Chinery v. Viall (1860), 29 L. J. Ex., at p. 183, as to credit sales. 78 . THE SALE OF GOVDS ACT, 1893. Where a man went into a restaurant and ordered dinner, and, after dining, said he coiild not pay for it, having only a halfpenny upon him, it was held that he could be convicted of obtaining credit by fraud, but not of obtaining goods by false pretences (1c). It seems therefore that under such circumstances there is an implied agreement for credit until the dinner is finished. Evidence. — In an action for non-delivery, it seems the buyer need not give avidence that he was ready and willing to pay, till the seller shows he was ready to deliver (I). Conversely, in an action for non-acceptance, the seller need not prove any tender of delivery. ,Jt_is enough to show that he was ready and willing to deliver (m). Where shares were sold, under a written contract, to be paid for at a future day, it was held that evidence might be received of a trade usage not to deliver tUl payment (n). On the other hand, where there was a contract in writing for the sale of hops at so much per owt., evidence of a course of dealing between the parties to allow six months' credit was rejected (o). It is easier to draw imaginary distinctions between these cases than to harmonise the principles on which they rest. As to payment by buyer, and tender of price, see further notes to sect. 49. 29.— (1.) Rules as to delivery. — Whether it is for the buyer to take possession of the goods or for the seller to send them to the buyer is a question depending in each case on the contract, express or implied, between the parties (jp). Apart from any such contract, express or implied, the place of delivery is the seller's place of business, if he have one, and if not, his residence : Provided that, if the contract be for the sale of specific goods, which to the knowledge of the parties when the contract is made are in some other place, then that place is the place of delivery. (2.) Where under the contract of sale the seller is bound to send (k) B. V. Jones (1898), 1 Q. B. 119. {I) Wilks V. Atkinson (1815), 1 Marshall, 412. " The averment of the plaintiff's readiness and willingness to perform his part of the contract will be proved by showing that he called on the defendant to accomplish his part." Note's to Cutter v. Powell, 2 Smith, L.C., ed. 11, p. 1. (m) Jackson v. Allaway (1844), 6 M. & Gr. 942 ; Baker v. Firminger (1859), 28 L. J. Ex. 130. {n) Field v. Lelean (1861), 30 L. J. Ex. 168, Ex. Ch. ; overruling as to usage, Spartali v. Benecke (1850), 10 0. B. 212 ; 19 L. J. 0. P. 293. (o) Ford V. Yates (1841), 2 M. & Gr. 549, as explained, Lockett v. Nicklin (1848), 2 Exch. 93 ; 19 L. J. Ex. 403. (p) As to f.o.b. contract, see Wimble v. Bosenberg, [1913] 3 K. B., at. pp. 752, 757, 0. A. As to ex-ship contract, see Yangtze Ins. Association v. Lukmar.jee, [1918] A. 0., at p. 589, P. C. PEBFORMANOE OF THE CONTBAGT (SEOT. 29). 79 the goods to the buyer, but no time for sending them is fixed, the seller is bound to send them within a reasonable time (q). (3.) Where the goods at the time of sale are in the possession of a third person, there is no delivery by seller to buyer unless and until such third person acknowledges to the buyer that he holds the goods on his behalf (r) ; provided that nothing in this section shall affect the operation of the issue or transfer of any document o'f title to goods (s). (4.) Demand or tender of delivery may be treated as ineffectual unless made at a reasonable hour (t). What is a reasonable hour is a question of fact. (5.) Unless otherwise agreed, the expenses of and incidental to putting the goods into a deliverable state must be borne by the seller. Illustration. Sale of cotton seed to be shipped from Bombay in August or September. The cotton is shipped in August, but the ship is stranded and cannot be got off for 3 months, and then has to be repaired. Unless there is a total loss of the commercial object of the contract, the buyer cannot reject the goods on the ground that they have not been delivered within a reasonable time {u). See "delivery" defined by sect. 62, post, p. 134, and " specific goods," posf p. 140, and " deliverable state," post, p. 142. As to negativing impUed terms by express terms, course of dealing, or usage, see sect. 55, post, p. 126. The deKvery of the key of the place where the goods are may, by agreement, operate as a delivery of the goods (x). (g) Ellis v. Thompson (1838), 3 M. & W. 445, see p. 456, per Alderson, B. By sect. 56, post, reasonable time is a question of fact. (r) Farina v. Hoine (1846), 16 M. & W. 119 (see at p. 123) ; Oodts v. Bose (1855), 17 C. B. 229; 25 L. J. 0. P. 61 ; Buddie -v. Green (1857), 27 L. J. Ex. 33 ; Pollock on Possession, p. 73. (s) See the Bills of Lading Act, 1855 (18 & 19 Vict. c. Ill), post, p. 163 ; and the Factors Act, 1889, post, p. 146 ; and sects. 25 and 47 ; of. Hayman v. M'Lintock (1907), 9 F. 936. («) Startup v. Maadonald (1843), 6 M. & Gr. 593, Ex. Oh. (m) Be Carver & Co. (1911), 17 Com. Gas. 59, see at pp. 67, 70. , (s) Ellis V. Hunt (1789), 3 T. B. 464; Chaplin v. Rogers (1800), 1 East, 192 ; Elmore v. Stone (1809), 1 Taunt. 458 ; cf. Ancona v. Bogers (1876), 1 Ex. D. 285, at p. 290, C. A. See Milgate v. Kebble (1841), 3 M. & Gr. 100 (delivery of key not delivery of goods) ; and see the whole question of so-called symbolic delivery discussed in Pollock on Possession, pp. 61-70 ; cf. French Civil Code, art. 1606. 80 ■ THE BALE OF GOODS ACT, 1893. Sub-sect. (1). — Place of delivery. — This sub-section was much considered and several times altered in Committee. The first part deals incidentally with the mode of delivery, and the second part with the place of delivery. As regards mode of delivery there was very little authority, but the assumed rule was, that it was for the buyer to take delivery, and that in the absence of any different agreement, the duty of the seller to deliver was satisfied by his affording to the buyer reasonable facilities for taking possession of the goods at the agreed place of deKvery (y). It seems a pity that a more definite primi facie rule has not been laid down by the Act. As regards place of delivery, there was no authority in point, and text writers seem to have followed Pothier, who says, " S'il n'y a point de lieu exprime, la Uvraison doit se faire an lieu ou est la chose ; c'est a I'acheteur de I'envoyer chercher" (2). The Act adopts a rule which is more in accordance with ordinary practice. Sub-sect. (2). — Delivery as required. — In a contract for goods to be delivered " as xequired," the buyer must require delivery within a reasonable time, but the seller cannot rescind the contract on the ground of delay without giving the buyer notice. "No doubt," says Pollock, C.B., " where a contract is silent as to time, the law implies that it is to be performed within a reasonable time ; but therelis another maxim of law, viz. that every reasonable condition is also implied, and it seems to me reasonable that the party who seeks to put an end to a contract, because the other party has not, within a reasonable time, required him to deliver the goods, should in the first instance inquire of the latter whether he means to have them " (a). Sub-sect. {3). — Goods in possession of third person. — As regards documents of title, the common law drew a hard-and-fast distinction between biUs of lading and other documents. The lawful transfer of a bill of lading was always held to operate as a delivery of the goods themselves, because, while goods were at sea they could not be otherwise dealt with (6). But the transfer of a delivery order or dock warrant operated only as a token of authority or possession, and not as a transfer of possession (c) ; and, as between immediate parties, there is (2/) Of. Wood V. Tassell (1844), 6 Q. B. 234 ; Smith v. Chance (1822), 2 B. & Aid., ^t p. 755 ; Salter v. WooUams (1841), 2 M. & Gr. 650, as explained, Benjamin on Sale, 4th ed., p. 683 ; but see the note in the 5tli ed., p. 691. (2) Contrat de Vente, No. 52 ; and see French Civil Code, art. 1609. (a) Jones v. Gibbons (1853), 8 Exch. 920, at p. 922. But this rule is not an absolute rule — the facts may show a mutual intention to abandon the contract. Pearl Mill Co. V. Ivy Tannery Co., [1919] 1 K. B. 78. As to when law will imply a condition not expressed, see The Moorcock (1889), 14 P. D., at p. 68, per Bowen, L.J. ; Nickoll V. Ashion, [1900] 2 Q. B. 298 (subsequent event making performance impossible) ; Ogdens, Ltd. vj Nelson, [1905] A. C. 109, H.- L. (obligation to continue to trade for a fixed period to carry out a contract). (6) Sanders v. Maclean (1883), 18 Q. B. D., at p. 341, per Bowen, L.J., and Siddell BrothersY. E. Clemens JBorst & Co., [1911] 1 K. B. at p. 956, per Kennedy, L.J. (c) Blackburn mi Sale, p. 302 ; M'Ewan v. Smith (1849), 2 H. L. Cas. 309, I'ERPOBMANCE OP THE CONTRACT (SECT. 30). 81 nothing to modify tlie common law rule. If, however, a buyer or mercantile agent, who is lawfully in possession of any document of title to goods, transfers it for value to a third person, the original seller's rights of lien and stoppage in transitu are thereby defeated (see Factors Act, 1889, pogt, p. 146, and sects. 2.5 and 47 of this Act). Sub-gect. (4.)— Hours for delivery. — This subsection alters the law in so far as it makes the question what is a reasonable hour a question of fact. It was formerly a question of law, and some highly technical rules for determining it were laid down by Lord Wensleydale (d). Sub-sect. (5.) — Expenses of delivery. — This is declaratory. " There is no implied contract," says Story, " that the vendee shall pay the vendor for any services in relation to the property rendered previous to the completion of the sale by delivery " (e). The rule seems a general one. By art. 1608 of the French Civil Code, " Les frais de la delivrance sent a la charge du vendetir, et ceux de I'enl^vement i la charge de I'acheteur, s'il n'y a eu stipulation contraire." For list of express terms dealing with time of delivery and judicially construed, see post, p. 183. 30. — (1.) Delivery of wrong quantity.— Where the seller delivers to the buyer a quantity of goods less than he contracted to sell, the buyer may reject them, but if the buyer accepts the goods so delivered he must pay for them at the contract rate (/). (2.) Where the seller delivers to the buyer a quantity of goods larger than he contracted to sell, the buyer may accept the goods included in the contract and reject the rest, or he may reject the whole. If the buyer accepts the whole of the goods so delivered he must pay for them at the contract rate (g). (3.) Where the seller delivers to the buyer the goods he con- tracted to sell mixed with goods of a different description not in- cluded in the contract, the buyer may accept the goods which are {d) Startup v. Macdonald (1843), 6 M. & Gr. 593, Ex. Ch. («) Story on Sale, § 291a. (/) SUpton V. Casson (1826), 5 B. & C, 378, at p. 382 (bark) ; Oxendale v. Wetherell (1829), 4 Man. & Ey. 429 (250 bushels of wheat), approved, Colonial Ins. Co. V. Adelaide Ins. Co. (1886), 12 App. Gas. at p. 138 ; Tamvaco v. Lucas (1859), 1 E. & E. 581, 592 (limits of variation fixed by contract) ; Morgan v. Oath (1865), 34 L. J. Ex. 165 (500 pioulff China cotton) ; Earland and Wolff v. Burstall (1901), 6 Com. Gas, 113 (470 loads of timber out of 500) ; Behrend <& Co. v. ProduM. Brokers Co., Ltd., [1920] 25 Com. Gas. 286 (partial delivery). (g) Hart v. Mills (1846), 15 M, & W. 85 (two dozen of port) ; Cunliffe v. Harrison (1851), 6 Exch. 903 ; 20 L. J. Ex. 325 (claret) ; cf. Dixon\. Fletcher (1837), 3 M. & M. 146 (cotton), and cases in next note. C.S.G. G 82 TBE SALM Of GOODS ACT, 1893. in accordance with the contract and reject the rest, or he may reject the whole (h). (4.) The provisions of this section are subject to any usage of trade, special agreement, or course of dealing between the parties. Illusiration. Sale of a cargo of wheat, which, with a limit of variation allowed by the contract, may amount to 4950 tons. The actual amount tendered is 4950 tons and 55 lbs., but the seller does not-iusist on payment for the extra 55 lbs. This is a good tender, and the buyer cannot reject it (i). As the seller does not fulfil his contract by delivering a less quantity than he contracted to sell, so, conversely, " if a man contracts to buy 150 quarters of wheat, he is not at Kberty to call for a small portion without being prepared to receive the whole quantity " (k), unless, of course, he has stipulated for so doing. When the seller delivers a larger quantity of goods than was ordered, such delivery operates as a proposal for a new contract (I). This, presumably, is the effect of any tender of goods which are not in conformity with the contract. "When the seller is uncertain as to the exact amount he can deliver, he may protect himself by using such terms as " about " so many tons, or so many tons " more or less," and he is then allowed a reasonable margin (to). Sub-sect. (3) was amended in Committee. It seems not to apply to a case where goods are of the kind or description ordered, but a portion of them are of inferior quality (n), unless the contract is severable (o). 31. — (1.) Instalment deliveries. — Unless otherwise agreed, the buyer of goods is not bound to accept delivery thereof by instal- ments (p). (2.) Where there is a contract for the sale of goods to be (h) Of. Levy v. Green (1859), 28 L. J. Q. B. 319, Ex. Oh. ; cf. Nicholson v. Bradfield Union, (1866), L. E. 1 Q. B., at pp. 624, 625, per Lord Blackburn. (i) Shypton Anderson & Co. v. Weil Brothers, [1912] 1 K. B. 574, 577 ; 17 Com. Cas. 153, 163. De minimis nan curat lex. Cf. Payne v. Lillico dh Sons (1920), 30 T. L. B. 569 (2 per cent, more or less). (fc) Kingdoms. Cox (1848), 5 0. B. 522, at p. 526, per Wilde, C.J. (iron girders). (l) Cunliffe v. Harrison (1851), 6 Exoh., at p. 906, per Parke, B. (10 hogsheads of claret). (m) Cockerell v. Aucompte (1857), 26 L. J. C. P. 194 ; McOormell v, Mmphy (1873), L. B. 5 P. C. 203 (pine spars). As to importing such a term by usage, see Moore v. Camvphell (1854), 10 Exoh., 323 ; 23 L. J. Ex. 310 (100 tons of hemp). (n) Aitken & Co. v. Boullen (1908), 10 P. 490, Court of Session. (o) Of. Jackson v. Botax Motor and Cycle Co., Ltd., [1911] 2 K. B. 937, C. A. \p) Beuter v. Sola (1879), 4 C. P. D. 239, C. A. (25 tons- of pepper). Nor can ha demand it; cce note to last section; Laws of England, vol. xxv,, p. 215. PERFOBMANCE OF THE CONTMAOT (SECT. 31). 83 delivered by stated 'instalments, which are to be separately paid for, and the seller makes defective deliveries in respect of one or more instalments, or the buyer neglects or refuses to take delivery of or pay for one or more instalments, it is a question in each case depending on the terms of the contract, and the circumstances of the case, whether the breach of contract is a repudiation of the whole contract, or whether it is a severable breach giving rise to a claim for compensation, but not to a right to treat the whole contract as repudiated {g). Illustrations. (1) Contract for sale of steel bars to be delivered over a period of three moutlis, in about equal monthly quantities, payment cash in fourteen days after delivery, " aU payments to be made on due date as a condition precedent to future deliveries." If the buyer does not pay according to contract, the seller may refuse unconditionally to make any further delivery (r). (2) Contract for rosewood to be delivered by instalments during the year. The buyer, on what afterwards turns out to be erroneous grounds, refuses the first instalment, and repudiates the contract. The second instalment is tendered and refused. The buyer cannot afterwards set up in mitigation of damages, that part of the first instalment was of inferior character (s). (3) Sale of 1100 pieces of blue gumwood to be delivered in two instalments. The first instalment of 750 pieces is of very inferior quality, and the buyer refuses to accept it. If an arbitrator finds that the quality of the instalment is of such a character as to amount to a repudiation of the contract, the Court will not disturb his finding (t). Sub-sect. (1) — " Suppose,'-' says Lord Bramwellj " a man orders a suit of clothes, the price being £7 — £4 for the coat, £2 for the trousers, and £1 for the waistcoat; can he be made to take the coat only, whether they were aU to be delivered together, or the trousers and waistcoat first ? " and he then proceeds to show that this cannot be (w). On the other hand, the circumstances of a contract may be such that an agreement for delivery by instalments will (g) Mersey Steel <& Iron Co. v. Naylor & Co. (ISSi), 9 App. Gas. 434 (steel rails) ; Dominion Coal Co. v. Dominion Iron and Steel Co., [1909] A. 0. 293, P. 0. (appeal from Nova Scotia) ; Steinberger v. Atkinson . 445. As to stoppage in transitu, Craven v. Byder (1816), 6 Taunt. 433 ; Ex p. Oolding Davis & Co. (1880), 13 Oh. D. 628 ; Kemp V. Valii (1882), 7 App. Gas. 573. As to delivery orders before the Factors, 1877, see McEiuan v. Smith (1849), 2 H. of L. Oas. 309 ; Blackburn on Sale, p. 302, which shows the common law efieots of these documents. (s) Blackburn on Sale, p. 224 ; Sioveld v. Hughes (1811), 14 East, 808 ; Pearson v. Dawson (1858), 27 L. J. Q. B. 248 ; Woodley v. Coventry (1863), 32 L. J. Ex. 185 ; Knights v. Wiffen (1870), L. B. 5 Q. B. 660 ; Merchant Banking Co. v. Phoenix Bessemer Co. (1877), 5 Oh. D. 205. (t) Mordaunt Brothers v. British Oil and Cake Mills, [1910] 2 K. B. 502. {u) Ant. Urgens Margarine fabrieken v. Louis Dreyfus d Co., [1914] 3 K. B. 41 {issue of delivery order by k— transfer of document of title). 108 THE SALE OF GOODS ACT, 1893. The effect of this enactment appears to be (i) to affirm the common law effect of the transfer of a bill of lading, and (ii) to put all the documents of title mentioned in sect. 1 of the Factors Act, 1889, on the same footing as bills of lading for the purposes of that Act. As regards biUs of lading the law appears to be as follows : — Transfer of hill of lading.— (1) That as between buyer and seller, that is to say, the immediate parties to the contract, the indorsement of the bill of lading does not affect the right of stoppage, nor does a further indorsement by the buyer affect the right unless the indorsement be for value (x), but an antecedent debt may constitute such value (y). (2) That if the holder of the bill of lading re-sells the goods or otherwise disposes of them for value to a third person, who pays the money, such third person acquires his interests in the goods, subject to the original seller's right of stoppage in transitu, unless he gets a transfer of the bill of lading (z). (3) That since the BiQs of Lading Act, 1865, as well as before, a bill of lading may be indorsed by way of mortgage, pledge, or other security, and not by way of absolute sale (a). Where a biU of lading is so transferred, the original seller retains his right of stoppage subject to rights of the incumbrancer, and, further, he may compel the incumbrancer to resort to other goods pledged with him by his debtor, if such there be, before resorting to the goods covered by the bill of lading (6). (4) That the right of stoppage in transitu is wholly defeated when the bill of lading is assigned absolutely for a consideration which is wholly paid(c). (5) That when the bill of lading is transferred to a sub-purchaser absolutely and for value, but that value is wholly or in part unpaid, there is probably no longer any right to stop to the extent of the money which is unpaid. In Exp. Golding Davis & Co., the buyer re-sold the goods and became insolvent; the biU of lading was made out in the name of the sub -purchaser but not delivered to him, and when the goods were stopped he had not paid the price. It was held, that the original seller was entitled to stop the goods for the original purchase- money. Cotton, L.J., said that the case must be decided " as if the biU of lading had been made out in the name of the original purchasers and had then been assigned by them to their sub-purchasers " (d). The decision was followed a few months afterwards in Ex p. Folk, and Lord BramweU, referring to the (x) Lickbarrow v. Mason (1793), 6 East 21, H. L. ; 1 Smith, L. C, 11th ed.,p. 693. ly) Leask v. Scott (1877), 2 Q. B. D. 376, C. A., dissenting from Rodger v. Comptoir d'Escompte (1869), L. R. 2 P. C. 393. (a) Kemp v. Falk (1882), 7 App. Cas. 573, see at p. 582, per Lord Blackburn. (a) Sewell v. Burdick (1884), 10 App. Cas. 74. But as to Scotland, see Hayman V. McIAntock (1907), 9 F. at p. 949. (6) Be Westzinthus (1833), 5 B. & Ad, 817 ; Spalding v. Buding (1843), 12 L. 3. Oh. 503 ; 6 Beav. 376 : approved Kemp v. Falk, 7 App. Oas. 585 ; cf. Coventry \. Gladstone (1868), L. E. 6 Eq. 44. (o) Lickbarrow v. Mason (1793), 1 Smith, Lead. Cas., 11th ed., p. 693 ; Leask v. Scott (1877), 2 Q. B. D. 376, C. A. {d) Ex p. Golding Davis (6 Co. (1880), 13 Oh. D. 628, at p. 637, C. A, kE-SALE BY BVYBR AND 8ELLEB (SECT. 48). 109 cases where bills of lading liad been pledged, said, " What difference is there in principle between the case of a man selling goods on credit for £500 and their being re-sold for £600, and the case of the purchaser pledging the goods for £600 with the right of sale bjr the pledgee P " (e). But when Ex p. Folk was taken to the House of Lords it was found to turn on wholly different con- siderations. Lord Selborne seemed to doubt the rule laid down vnExp. Golding Bavies & Co., saying he assented to " the proposition that where the sub- purchasers get a good title as against the right of stoppage in transitu, there can be no stoppage in transitu as against the purchase-money payable by them to their vendor." The other lords declined to give any opinion on the point (/). As to biUs of lading, see further the Bills of Lading Act, 1855 (18 & 19 Vict. c. Ill), and notes thereto, post, p. 163. 48. — (1.) Sale not generally rescinded by lien or stoppage in transitu. — Subject to the provisions of this section, a contract of sale is not rescinded by the mere exercise by an unpaid seller of his right of lien [or retention] or stoppage in transitu {g). (2.) Where an unpaid seller who has exercised his right of lien [or retention] or stoppage in transitu re-sells the goods, the buyer acquires a good title thereto as against the original buyer (h), (3.) Where the goods are of a perishable nature (i), or where the unpaid seller gives notice to the buyer of his intention to re- sell, and the buyer does not within a reasonable time pay or tender the price, the unpaid seller may re-sell the goods and recover from the original buyer damages for any loss occasioned by his breach of contract (h). (e) Ex p. Walk (1880), 14 Ch. D. 446, at p. 457, C. A. ; Phelps v. Comber (1885), 29 Ch. D., at p. 821. (/) Kemp V. Falk (1882), 7 App. Cas. 573, at p. 577. (g) Greaves v. Ashlin (1813), 8 Camp. 425 ; Martindale v. Smith (1841), 1 Q B. 389 ; Wentworth v. OuthwaAle (1842), 10 M. & W. 436 (Lord Abinger dissenting) ; Page v. Oowasjee (1866), L. E. 1 P. C. at p. 145 ; Schotsmans v. Lanes, and Yorks, Railway (1867), L. E. 2 Ch. App., at p. 340, per Lord Cairns ; Kemp v. Falk (1882), 7 App. Cas., at p. 581, per Lord Blackburn. {h) Milgate y. Kebble (1841), 3 M. & Qr. 100; ef. Lord v. Price (1874), L. B. 9 Ex. 54 ; cf. sect. 25 (1), ante, and Laws of England, vol. xxv., p. 263. (i) Cf. Maclean v. Dunn (1828), 4 Bing. 722, at p. 728, where there had been a refusal to accept ; Laws of England, vol. xxv., p. 264. (k) -Page v. Cowasjee (1866), L. E. 1 P. C, at p. 145; Lord v. Price (1874), L. E. 9 Ex., at p. 55 ; Ex p. Stapleton (1879), 10 Ch. D. 586, C. A. ; Indian Contract Act, 1872, § 107. Qu. if the re-sale results in a profit, whether the seller is entitled to retain it ? Probably he is, see Latus of England, vol. xxv., p. 264. 110 TBE BALE OF GOODS ACT, 1893. (4) Where the seller expressly reserves a right of re-sale in case the buyer should make default, and, on the buyer making default, re-sells the goods, the original contract of sale is thereby rescinded, but without prejudice to any claim the seller may have for damages (Z). By sect. 62, post, p. 138, " lien " in Scotland includes right of retention. By sect. 56, post, p. 128, reasonable time is a question of fact. I As long as the buyer is in default he is not entitled^to the immediate possession of the goods, and therefore cannot maintain an action for conversion even against a wrong-doer in possession (m). Be-sale by seller. — In Ex p. Stapleton, it was said that when the buyer was insolvent the seller might re-sell unless the trustee or a sub-purchaser tendered the price within a reasonable time, and nothing was said about notice. But as a fact the seller in that case gave fair notice of his intention to re-sell (n). Before the Factors Act, 1877, if the seller wrongfully re-sold goods left in his possession, the original buyer codM follow them into the hands of an innocent purchaser (o), but that Act protected the purchaser where the seller was left in possession of the documents of title, and sect. 8 of the Factors Act, 1889, now reproduced in sect. 25 (1) of this Act, protects the second purchaser if either the goods themselves or the documents of titie to them are left in the seller's hands. See " unpaid seller," defined by sect. 38, ante, p. 93. Sub-sect. (3) appears ' to be governed by sub-sect. (1), and only to apply to an unpaid seller who has exercised his right of lien or stoppage. As to sale of i>erishable goods by order of the court, see K.. S. C, Order L., r. 2. (1) Lanumd v. Davall (18i7), 9 Q. B. 1030, 16 L. J. Q. B. 136. (m) Lord v. Price (1874), L. B. 9 Ex. 54. (to) Exp. Stapleton (1879), 10 Ch. D. 586, C. A. (o) Langton v. Biggins (1859), 28 L. J. Ex. 252 ; Johnson Oridit I/yonnais (1877), a C.P.D. 32. ( 111 ) PART Y. Actions for Breach op the Contract. Remedies of the Seller. 49. — (1.) Action for price. — Where, under a contract of sale, the property in the goods has passed to the buyer, and the buyer wrongfully neglects or refuses to pay for the goods according to the terms of the contract, the seller may maintain an action against him for the price of the goods (a). (2.) Where, under a contract of sale, the price is payable on a day certain irrespective of delivery, and the buyer wrongfully neglects or refuses to pay such price, the seller may maintain an action for the price, although the property in the goods has not passed, and the goods have not been appropriated to the contract [h). (3.) Nothing in this section shall prejudice the right of the seller in Scotland to recover interest on the price from the date of tender of the goods, or from the date on which the price was payable, as the case may be(c). Illustration. Contract for sale of goods to be paid for " net cash against documents on arrival of the steamer." If the buyer refuses the tender of the documents, the claim is for damages, and not for the price, for the price is not " payable on a day certain irrespective of delivery " (d). (a) Scott V. England (1844), 2 D. & L. 520 (re-sale of goods bought at auction, but not yet paid for) ; cf.Eymery. Suwercropp (1807), 1 Camp. 109 (goods stopped in transitu) ; Alexander v. Gardner (1835), 1 Bing. N. G. 671 (goods lost at sea). (6) Dunlop V. Grote (1845), 2 0. & K. 153. (c) See note, post, p. 113. (d) Stem Forbes d Co. v. County Tailoring Co. (1916), 115 L. T. 215, citing the notes to Pordage v. Cole, 1 Williams Saunders, ed. 5, p. 320. 112 IHE SALE OF QOODS ACT, 1893. See " action,'' " contract of sale," and " delivery,'' defined by sect. 62, post, and as to fixuigthe price, see sects. 8 and 9, ante. The general rule of English law is that, in the absence of any different agreement, when a debt becomes due, it is the duty of the debtor to go and tender the amount to his creditor, if iu England, without waiting for any demand (e). The price must be tendered in lawful money (/). Gold is legal tender up to any amount, sUver up to forty shillings, and bronze up to one shilling (jf). Bank of England notes are legal tender in England except by the Bank itself Qi). Treasury £1 and 10s. notes are legal tender throughout the United Kingdom (i). When tender is pleaded as a defence, the sum tendered must be brought into Court 0'). Indebitatus connts. — The term " sale " includes both a bargain and sale and a sale and delivery, see sect. 62, post, p. 139. Before the Judicature Acts the price of goods sold could be recovered under the common indebitatus counts. The count for goods sold and delivered was applicable where the property had passed and the goods had been delivered to the buyer, and the price was payable at the time of action brought. The count for goods bargained and sold was applicable when the property had passed to the buyer and the contract had been completed in all respects except delivery, and the delivery was not a condition precedent to the payment of the price (Je). Now it is sufB.cient to show facts disclosing either cause of action, but the old counts are still used (Z). The neglect or refusal to pay must be wrongful. It does not necessarily follow that because the property -has passed the price is forthwith payable. The sale may have been on credit, or payment may be made to depend on some specific condition or contingency (m). Payment by bill. — Where there is an agreement for payment of the price by a biU payable at a future day, and the bill is not given, the seller cannot sue for the price till the bill would have matured. His remedy before that time is by action for damages for breach of the agreement («.). Where a bill is given for (e) Cf. Walton v. Mascall (1844), 13 M. & W., at p. 458; Fessa/rd v. Mugnier (1865), 34 L. J. G. P. 126; Startup v. Macdonald (1844), 6 M. & Gr. 593, at pp. 623, 624, and oases cited in Charles Duval v. Gone (1904), 2 K. B. 685, 0. A. (service out of jurisdiction). (/) A debtor has no right to demand change, Betterbee v. Davis (1811), 8 Camp. 70. Bosooe, Nisi Prius, ed. 17, p. 709. As to cheque, see International Sponge Co. v. Andrew Watts ), l'1 M. .It, W. 606. (/) liKjlis v. llohi'Hsoii, [IH'JHJ A, 0, OIG, Sr, 154 TEE FACTORS ACT, 1889. pledgee before the time of the pledge, the pledgee shall acquire no further right to the goods than could have been enforced by the pledgor at the time of the pledge. This section reproduces ia altered language the clumsily worded sect. 3 of the Factors Act, 1825 (6 Geo. 4, o. 94), as read with the proviso contained in sect. 3 of the Factors Act, 1842 (6 & 6 Vict. c. 39). The substitution of the words " debt OT liability" for " antecedent debt " is material (jr). The use of the word " due," though appropriate to the term " debt,'' seems inappropriate to the term " liability." The section should perhaps be read as if it ran " debt due from or liability incurred by," etc. The object of this section seems to be to draw a marked distinction between past considerations and present or future considerations. In terms it applies only to pledges of goods, but, having regard to the language of sect. 3, it may be intended to apply also to pledges of documents. 5. Rights acquired by exchange of goods or documents. — The con- sideration necessary for the validity of a sale, pledge, or other disposition, of goods, in pursuance of this Act, may be either a pay- ment in cash, or the delivery or transfer of other goods, or of a document of title to goods, or of a negotiable security, or any other valuable consideration ; but where goods are pledged by a mercantile agent in consideration of the delivery or transfer of other goods, or of a document of title to goods, or of a. negotiable security, the pledgee shall acquire no right or interest in the goods so pledged in excess of the value of the goods, documents, or security when so delivered or transferred in exchange. By sect. 4 of the Factors Act, 1842 (5 & 6 Vict. o. 39), it was provided, inter alia, that " any payment made, whether by money or bills of exchange, or other negotiable security, shall be deemed and taken to be an advance within the meaning of this Act." The first paragraph of the present section considerably extends the scope of the old enactment, by substituting " valuable con- sideration " for an " advance," as above defined. See the definition of " pledge " in sect. 1, ante, p. 150. The second paragraph of the section reproduces in somewhat different language the provisions of sect. 2 of the Factors Act, 1842, which was intended to protect exchange of goods and securities made in good faith, and to alter the law as laid down in Taylor v. Kymer and Bonzi v. Stewart (h). (g) For oases on the repealed sections, see Jewan v. WhUworth (1866), L. E. 2 Eq. 692 ; Macnee v. Gorst (1867), L. E. i Eq. 315 ; Kaltenbach v. Lewis (1885), 10 App. Gas. 617. {h) See Cole v. North Western Bank (187S), L. R. 10 C. P., at p. 370, commenting on Taylor v. Kymer (1832'), 3 B. & Ad. 320 ; Bon^i v, Stewart (1842), 4 M. & Gx. 295, • THE FACTORS ACT, 1889 (SECTS. 6, 7). 155 As regards the application of this section to Scotland see sect. 1 (2) of the Factors (Scotland) Act, 1890, post, p. 162. 6. Agreements through clerks, &c. — For the purposes of this Act an agreement made with a mercantile agent through a clerk or other person authorised in the ordinary course of business to make contracts of sale or pledge on his behalf shall be deemed to be an agreement with the agent. This section is taken from, and generalises, a paragraph in sect. 4 of the Factors Act, 1842 (5 & 6 Vict. o. 39). 7. — (1.) Provisions as to consignors and consignees. — Where the owner of goods has given possession of the goods to another person for the purpose of consignment or sale, or has shipped the goods in the name of another person, and the consignee of the goods has not had notice that such person is not the owner of the goods, the con- signee shall, in respect of advances made to or for the use of such person, have the same lien on the goods as if such person were the owner of the goods, and may transfer any such lien to another person. (2.) Nothing in this section shall limit or affect the validity of any sale, pledge, or disposition, by a mercantile agent. The first snb-section reproduces in different language the provisions of sect. 1 of the Factors Act, 1825 (i). It is to be noted that the section applies only to goods and not to documents of title, and to cases where the consignee has not had notice that the consignor is not the owner. Lord Blackburn raised a doubt on the repealed enactment whether " notice " was co-extensive with knowledge (fe). The term " advance " must probably be interpreted by the light of sect. 5, ante. The second sub-section shows that the present section is to be construed as amplifying, and not as derogating from, the powers of mercantile agents under sect. 2, ante, p. 150. Sect. 13, post, p. 160, further saves the common law powers of factors and agents of that class. As to a factor's or consignee's lien, see Story on Sale, § 97. (i) S that enactment discussed In Cole v. North Western Bank (1875), L. B.. 10 C. P., pp. 361-367; and Johnson v. Cridit Lyonnais (1877), 3 C. P. D., at pp. 44, 45. {Jc) Mildred v. Maspons (1883), 8 App. Gas., at p. 885. 156 THE FA0T0B8 ACT, 1889. Dispositions ly Sellers and BtM/ers of Goods (I). 8. Disposition by seller remaining in possession. — Where a person, having sold goods, continues, or is, in possession of the goods or of the documents of title to the goods, the delivery or transfer by that person, or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge, or other disposition thereof, or under any agreement for sale, pledge, or other disposition thereof, to any person receiving the same in good faith and without notice of the previous sale, shall have the same effect as if the person making the delivery or transfer were expressly authorised by the owner of the goods to make the same. This section, whioli is now reproduced by sect. 26 (1) of the Sale of Goods Act, was substituted for sect. 3 of the Factors Act, 1877 (40 & 41 Vict. c. 39), which altered the law as laid down in Johnson v. Credit Lyonnais (to). It was there held that if the buyer, for his own convenience, left the goods and documents of title in the hands of the seller, who fraudulently resold or pledged them, he could nevertheless recover the goods from the innocent purchaser or pledgee. The Act of 1877 only applied to documents of title. The present section extends the principle of that enactment by applying to goods as well as to documents of title. The provisions of sect. 5, ante, p. 154, as to consideration, clearly apply to this section ; but the provisions of sect. 4 (pledge for antecedent debt) appear only to apply when the pledge is effected through a mercantile agent. Kon-repeal. — The Sale of Goods Bill originally proposed to repeal this and the two following sections ; but the repeal was afterwards omitted, as the provision of the Sale of Goods Act is slightly narrower. It omits the words " or under any agreement for sale, pledge, or other disposition thereof." As to resale by an " unpaid seller," see sect. 48 of the Sale of Goods Act, ante, p. 109. 9. Disposition by buyer obtaining possession.— Where a person, having bought or agreed to buy goods, obtains with the consent of the seller (n) possession of the goods or the documents of title to the goods, the delivery or transfer, by that person or by a mercantile agent acting for him, of the goods or documents of title, under any {I) See the general scope of the sections under this heading discussed by Lords Watson and Herschell in Inglis v. Robertson, [1898] A. C, at pp. 628, 630. (m) Johnson v. Gridit Lyonnais (1877), 3 C. P. D. 32, 40, C. A. \n) See these words discussed by Collins, L.J., in Cahn v, Pockett's Bristol ChannH Co,, [1899] 1 Q. B., at p. 661. THE FACTORS ACT, 1889 (SECT. 9). 15? sale, pledge, or other disposition thereof, or under any agreement for sale, pledge, or other disposition thereof, to any person receiving the same in good faith and without notice of any lien or other right of the original seller in respect of the goods, shall have the same effect as if the person making the delivery or transfer were a mercantile agent in possession of the goods or documents of title with the consent of the owner. This section, which is now reproduced by sect. 25 (2) of the Sale of Goods Act, was substituted for sect. 4 of the Factors Act, 1877 (40 & 41 Vict. c. 39). The latter enactment applied only to documents of title. The present section applies to the goods themselves as well as to documents of title. As to the reason for its non-repeal by the Sale of Goods Act, see note to last section. The common law rules which preceded these enactments are thus stated by Blackburn, J. : " It has been repeatedly decided that a sale or pledge of a delivery order or other document of title (not being a bill of lading) by the vendee does not defeat the unpaid vendor's rights, because the vendee is not intrusted as an agent (o). And it may be observed that in many of such cases in which money has been advanced to the buyer on the faith of the documents of title, the buyer must have been a person who carried on business as a com^ mission merchant : yet it never seems to have occurred to any one that that fact made any difference. So it has been repeatedly held that when either the goods or documents of title are obtained from the owner (not on a contract of sale good tUl defeated, though defeasible on the ground of fraud, but by some trick), a purchaser or pledgee acquires no title, for the trickster is not an 'agent intrusted ' with the possession " {p). It is submitted that the last proposition is not affected by the section ; for the foundation of the rule is that there is no real consent (j). The section, however, would clearly apply to cases where there is a de facto contract, though defeasible on the ground of fraud : see ante, p. 69. So, too, it applies where there is a de facto contract of sale between the original seller and buyer, though that contract might be inefEectual for non-compliance with sect. 17 of the Statute of Frauds (r), now reproduced in sect. 4 of the Sale of Goods Act. Hire-purchase agreements. — The hirer under a hire-purchase agreement is not a person who has " agreed to buy goods " within the meaning of this section, unless he is under a binding agreement to buy them. An option to purchase is (o) Cf. Jenhyns v. XJsborm (1844), 7 M. & Gr. 668 ; McEwan v. Smith (1849), 2 H. L. 0. 309. {p) Cole V. North Western Bank (1875), L. R. 40 0. P., at p. 373, citing for last proposition, Kmgsford v. Merry, 1 H. & N. 503, and Hardman v. Booth, 1 H. & C. 803. See those cases disouBsed, ante, p. 69. (q) Cf. Cahn v. Pockett's Bristol Channel Co., [1899] 1 Q. B,, at pp. 658-660, 0. A., B9 to larceny by a trick. (r) Hugill v. Masker (1889), 22 Q. B. D. 364, 0. A. 158 THE FAGT0B8 ACT, 1889. not sufficient (s). But a conditional agreement to buy is sufficient (t). Before default in payment of instalments a Mre-purchase agreement, may be assigned, and the assignee then succeeds to the rights and duties of the assignor (u), and if the hire-purchaser of a car sends it to be repaired, but makes default in paying the instalments, the repairer has a lien on the car for the cost of the repairs (x). Whether a hire-puyohase agreement requires to be registered as a bill of sale depends on the true construction of the documents (y). 10. Effect of transfer of documents on seller's lien or right of stoppage in transitu. — ^Where a document of title to goods has been lawfully transferred to a person as a buyer or owner of tlie goods, and that person transfers the document to a person who takes the document in good faith and for valuable consideration, the last- mentioned transfer shall have the same effect for defeating any vendor's lien or right of stoppage in transitu as the transfer of a bill of lading has for defeating the right of stoppage in transitu. This section, which is now reproduced and developed by sect. 47 of the Sale of Goods Act, was substituted for sect. 5 of the Factors Act, 1877 (40 & 41 Vict. o. 39). It applies to all the documents of title mentioned in sect. 1, ante, p. 149, the common law rules relating to the effect of the transfer of a bill of lading on the seller's right of lien or stoppage in transitu, as to which see ante, pp. 94, 107. To some extent this section covers the same ground as the preceding section. But sect. 9 requires that the transferee shall have no notice of the seller's lien or other rights, because it applies to cases where the buyer has obtained the goods or docxmients under a contract voidable on the ground of fraud. The present section omits the reqtiirement as to absence of notice. The mere fact that the j>rioe is unpaid does not make it a fraud to transfer the goods or dooum.ents so as to defeat the seUer'a lien or right of stoppage in transitu. As to the reason for not repealing this section by the Sale of Goods Act, see note to section 8, ante, p. 156. Supplemental. 11. Mode of transferring documents.— For the purposes of this (s) Belsize Motor Supply Co. v. Cox, [1914] 1 K. B. 244; Helby v. Matthews, [1895] A. C. 471, reversing C. A. ; distinguishing Lee v. Butler, [1893] 2 Q. B. 318 ; and on this point inferentially overruling Shenstone v. Hilton, [1894] 2 Q. B. 452 ' (auctioneer selling for hirer) ; see Hull v. Adams (1896), 65 L. J. Q. B. 114, following Lee V. Butler, and Brooks v. Biernstein, [1909] 1 K. B. 98. (t) Marten v. Whale, [1917] 2 K. B. 480, G. A. (agreement to buy a motor car if purchaser's solicitor should approve the conditions of a lease). (u) Whiteley v. Hilt, [1918] 2 K. B. 808, 0. A. (as) Oreen v. All Motors, Ltd., [1917] 1 K. B. 625, 0. A. (y) Reed on Bills of Sale, ed. 13, pp. 54-61. THE FACTORS ACT, 1889 (SECTS. 11, 12). 159 Act, the transfer of a document may be by endorsement, or, where the document is by custom or by its express terms transferable by delivery, or makes the goods deliverable to the bearer, then by delivery. See " documeut of title " defined, ante, p. 149. This section is taken from words used in sect. 5 of the Factors Act, 1877 (40 & 41 Vict. c. 39), which are now generalised by being put into a separate section. 12. — (1.) Saving for rights of true owner. — Nothing in this Act shall authorise an agent to exceed or depart from his authority as between himself and his principal, or exempt him from any liability, civil or criminal, for so doing. As to the criminal UabUity of factors or agents misappropriating goods or documents of title, see the Larceny Act, 1916 (6 & 7 Groo. 5, c. 50), s. 22, and Stephen's Digest of the Criminal Law, arts. 347, 348. (2.) Nothing in this Act shall prevent the owner of goods from recovering the goods from an agent or his trustee in bankruptcy at any time before the sale or pledge thereof, or shall prevent the owner of goods pledged by an agent from having the right to redeem the goods at any time before the sale thereof, on satisfying the claim for which the goods were pledged, and paying to the agent, if by him required, any money in respect of which the agent would by law be entitled to retain the goods or the documents of title thereto, or any of them, by way of lien as against the owner, or from recovering from any person with whom the goods have been pledged any balance of money remaining in his hands as the product of the sale of the goods after deducting the amount of his lien. As a general rule, goods or documents of title, held by an agent for his principal, are considered as trust property, and do not pass to the agent's trustee in bankruptcy, though in some cases the reputed ownership provisions might apply : see Bankruptcy Act, 1914, s. 38. (3.) Nothing in this Act shall prevent the owner of goods sold by an agent from recovering from the buyer the price agreed to be paid for the same, or any part of that price, subject to any right of set-off on the part of the buyer against the agent. As to the buyer's right of set-off against an agent with whom he dealt, under 160 TtiE FACTOkS ACT, 1889. the belief that he was a principal, see Kaltenbach v. Lewis (1885), lO App. GaM. 617; Coohe V. Eshelby (1887), 12 App. Cas. 271. 13. Saving for common law powers of agent. — ^The provisions of this Act shall be construed in amplification and not in derogation of the powers exerciseable by an agent independently of this Act. This section is new. It recognises, what the judges have frequently pointed out, that the Factors Acts are partly declaratory and partly enacting (z). In dealing with the exceptions to the general rule, Nemo dat quod nan habet (ante, p. 64), Willes, J., observes : " A third case where a man may convey a better title to goods than he himself had is where an agent, who carries on a public business, deals with the goods in the ordinary course of it, though he has received secret instructions from his principal to deal with them contrary to the ordinary course of that trade. In tl^at case he has an ostensible authority to deal in such a way with the goods as agents ordinarily deal with them, and if he deals with them in the ordinary way of the trade he binds his principal " (a). [14. Repeals. — Repealed.] This section and the schedule, having done their work, are repealed by the Statute Law Revision Act, 1908 (8 Edw. 7, c. 49). The Acts repealed by sect. 14 were The Tactors Act, 1823 (4 Geo. 4, c. 83) ; The Factors Act, 1825 (6 Geo. 4, c. 94) ; The Factors Act, 1842 (5 & 6 Vict. c. 39) ; The Factors Act, 1877 (40 & 41 Vict. c. 39). [15. Commencement. — Repealed.^ [16. Extent. — Bejoealed.j Sections 15 and 16 are repealed by the Statute Law Revision Act, 1908 (8 Edw. 7, c. 49). Section 16 excluded Scotland, but the Factors Act, 1889, was applied to Scotland the next year by the Factors (Scotland) Act, 1890 (53 & 54 Vict. c. 40), post, p. 162. It may be noted the provisions of the Factors Acts are more nearly declaratory of Scotch common law than they were of English common law (6). See the subject discussed, Bell's Principles, 9th ed., p, 824 et seq. 17. Short title.— This Act maybe cited as the Factors Act, 1889, Though the Act is called ih.e Factors Act, the word " factor " does not occur (2) See Cole v. North Western Bank (1875), L. E. 10 0. P., at p. 360, et seq. (a) Fmntes v. Montis (1868), L. R. 3 0. P. 268, at p. 277 ; ef. Johnson v." Cridit Lyonnais (1877), 3 C. P. D., at pp. 37-40. (6) Vickers v. Hertz (1871), L. R. 2 So. App. 113, at p. 119. TEE FAGTOBS ACT, 1889 (SECT. 17). 161 in it. It applies to any mercantile agent within the meaning of sect. 1. It might have been more appropriate to call it the " Mercantile Agents Act," as has been done in some colonies which have adopted it, but there was convenience in retaining the familiar name (c). (c) For definition of " factor," see Story on Agency, § 33, and Exp. Dixon (1876), 4 Oh. D. at p. 187. C.S.G. M ( 162 ) THE FACTOES (SCOTLAND) ACT, 1890. (53 & 54 Vict. c. 40.) [14th August, 1890.] 1. Application of 52 & 53 Vict. c. 45 to Scotland.— Subject to the following provisions, the Factors Act, 1889, shall apply to Scotland. (1.) The expression "lien" shall mean and include right of retention; the expression "vendor's lien" shall mean and include any right of retention competent to the original owner or vendor ; and the expression " set-off" shall mean and include compensation. (2.) In the application of section five of the recited Act, a sale, pledge, or other disposition of goods shall not be valid unless made for valuable consideration. See sect. 6 of the Factors Act, 1889, ante, p. 154, and Green's Encydopxdia of Scots Law, tit. " Factors Acts." 2, Short title. — This Act may be cited as the Factors (Scotland) Act, 1890. ( 163 ) APPENDIX I.— STATUTES. THE BILLS OF LADING ACT, 1855. (18 & 19 Vict. c. 111.) An Act to amend the Law relating to Bills of Lading. [4tli August, 1855.] Whereas by the custom of merchants a bill of lading of goods being trans- ferable by endorsement, the property in the goods may thereby pass to the endorsee, but nevertheless all rights in respect of the contract contained in the bin of lading continue in the original'shipper or owner, and it is expedient that such rights should pass with the property ; and whereas it frequently happens that the goods in respect of which bills of lading purport to be signed, have not been laden on board, and it is proper that such bills of lading in the hands of a hand fide holder for value, should not be questioned by the master or other person signing the same on the ground of the goods not having been laden as aforesaid : Be it therefore enacted, etc. Sect. 1. — Bights under bills of lading to vest in consignee or endorsee. — Every consignee of goods named in a bill of lading, and every endorsee of a bill of lading to whom the property in the goods therein mentioned shall pass, upon or by reason of such consignment or endorsement, shall have transferred to and vested in him all rights of suit, and be subject to the same liabilities in respect of such goods as if the contract contained in the biU of lading had been made with himself. Sect. 2. — Not to affect right of stoppage in transitu or claims for freight. — Nothing herein contained shall prejudice or affect any right of stoppage in transitu, or any right to claim freight against the original shipper or owner, or amy liabiKty of the consignee or endorsee, by reason or in consequence of his being such consignee or endorsee, or of his receipt of the goods by reason or in consequence of such consignment or endorsement. Note. — As to non-liability of pledgee of bill of lading for freight, see Sewell V. Burdick (1884;, 10 App. Cas. 74. As to pledge of bill of lading and con- version before plaintiff's title accrued, see Bristol Bank v. Midland Railway, [1891] 9 Q. B. 653, C. A. Sect. 3. — Bill o{ lading in hands of consignee, Ao., conolnsive evidence of the Bhipment as against master, etc. — Every bill of lading in the hands of a consignee 164 APPENDIX I. or endorsee for valuable consideration respecting goods to have been shipped oil board a vessel, shall be conclusive evidence of such shipment as against the master or other person signing the same, notwithstanding that such goods or some part thereof may not have been so shipped, unless such holder of the bill of lading shall have had actual notice at the time of receiving the same that the goods had not been in fact laden on board (as) ; provided, that the master or other person so signing may exonerate himself in respect of such misrepresenta- tion by showing that it was caused without any default on his part, and whoUy by the fraud of the shipper, or of the holder, or some person under whom the holder claims. Note. — A bin of lading, says Lord Blackburn, " is a writing signed on behalf of the owner of the ship in which goods are embarked, acknowledging the receipt of the goods, and ttndertaking to deliver them at the end of the voyage, subject to such conditions as may be mentioned in the bill of lading " (6). A " through bill of lading " is a bill of lading " made for the carriage of goods from one place to another by several shipowners or railway com- panies "(c). It seems doubtful how far the Act applies to these documents, which are of modern origin (d). At common law the property in the goods could be transferred by the endorsement of the bill of lading, but the contract created by the bill of lading could not, therefore the endorsee could not sue on the contract in his own name (e). The Act of 1855 confers this right while confirming the conuuon law rights. "A cargo at sea," says Bowen, L.J., "while in the hands of the carrier, is necessarily incapable of physical delivery. During this period of transit and voyage, the bill of lading by the law merchant is universally recognised as its symbol, and the endorsement and delivery of the biU of lading operates as a symbolical delivery of the cargo. Property in the goods passes by such endorsement and delivery of the bill of lading whenever it is the intention of the parties that the property should pass, just as under similar circumstances the property would pass by an actual delivery of the goods " (/). He then goes on to say that by the inveterate practice of merchants, bills of lading are made out in three or more parts, one part being usually retained by (a) But the shipowner is not liable If the master signs a bill of lading for goods not received on board, George Whitechwch, Ltd. v. Cavanagh, [1902] A. C, at p. 125. As to correcting a mistake, see Parsons v. New Zealand Shipping. Co., [1901] 1 Q. B. 548, 0. A. (b) Blackburn on Sale, p. 275 ; Sewell v. Burdick (1884); 10 App. Gas 74 at p 105, H. L. (c) Scrutton on Charter Parties and Sills of Lading, 8th ed., p. 69. (d) See Scrutton, supra, and Law Quarterly Eeview, vol. v. p. 424, and vol. vi. p. 289, and Oaryer's Carriage by Sea, §§ 107, 108, where the effect of these instruments is fully discussed. (e) Thompson v. Dominy (1845), 14 M. & W. 403. (/) Sanders v. Maclean, (1883), 11 Q. B. D. 327, at p. 341 ; cf. The Prinz Melbert (1917), A. 0. 587, at p. 589, per Lord Sumner. STATUTES. 165 the captain, the others being handed to the shipper. This practice has often given rise to frauds. The decisions on bills of lading, which are very numerous, are collected in the notes to Liclebarrow v. Mason, 1 Smith, Lead. Cas. ; and the subject is fully dealt with in ScruMon on Charter Parties and Bills of Lading ; but the following salient points may be noted. (1) The voyage is deemed to continue, and the biU of lading to be alive as long as the goods are held on behalf of the master under a lien for freight, even though they have been landed (g). (2) "When two or more parts of a bill of lading are transferred to two or more different bona fide transferees for value, the property in the goods passes to the transferee who is first in point of time (7i). (3) But, nevertheless, the person who has the custody of the goods may safely deliver them to the person who first presents the bill of lading (or a part thereof) to him, provided he acts in good faith and without notice of any prior claim (t). (4) A contract to deliver a bill of lading is complied with by delivering one part, though the others are not accounted for (k). (5) Except for the purpose of the Factors Act and of defeating the right of stoppage in transitu, the transferee of a bill of lading acquires no better title to the goods represented thereby than the transferor had. In this respect a bill of lading differs from a bill of exchange, or rather it resembles an overdue bill of exchange, which can only be negotiated subject to all equities attaching toit(i). As to the effect of the transfer of a bill of lading on the right of stoppage in transitu, see ante, p. 107. As to the Factors Act, see ante, pp. 146-160. (6): Where laws conflict, stipulations in a bill of lading must be construed according to the lex loci contractus, which prima facie only is the law of the place where the contract was entered into (m). (7) When a bill of exchange, with bUl of lading attached, is presented for acceptance or payment, the person, who in good faith presents it, is not re- sponsible for the authenticity of the biU of lading (w). {g) Barber v. Meyerstein (1870), L. E. 4 H. L. 317. {h) Barber v. Meyerstein (1870), L. E. 4 H. L. 317. (i) aiyn. Mills dt Co. v. East & West India Docks (1882), 7 App. Cas. 591. {k) Sanders v. MacUan (1883), 11 Q. B. D. 327, 0. A. (t) Gurney. v. Behrend (1864), 3 E. & B. 622. As to fraud, however, see The Argentina (1867), L. E. 1 Adm. 370. (m) Be Missouri Steamship Co. (1889), 42 Oh. D. 321, at p. 328, C. A. (7i) Guarantee Trust Co. of New York v. Hannay & Co., [1918] 2 K. B, 623, 0. A. 166 APPENDIX I. BILLS OF SALE ACT, 1878. (41 & 42 Vict. c. 31.) An Act to consolidate and amend the Law fw Preventing Frauds upon Creditors by Secret Bills of Sale for Personal Chattels. Seot. 4.— Interpretation of terms.— In this Act the foUowing words and expressions shall have the meanings in this section assigned to them respectively, unless there be something in the subject or context repugnant to such con- struction (that is to say) : Bill of Sale defined. — Excepted documents. — The expression " bill of sale " shall include bills of sale, assignments, transfers, declarations of trust without transfer, inventories of goods with receipt thereto attached, or receipts for purchase-moneys of goods, and other assurances of personal chattels, and also powers of attorney, authorities, or licences to take possession of personal chattels as security for any debt, and also any agreement, whether intended or not to be followed by the execution of any other instrument, by which a right in equity to any personal chattels, or to any charge or security thereon, shall be conferred, but shall not include the following documents ; that is to say, assignments for the benefit of the creditors of the person making or giving the same, marriage settlements, transfers or assignments of any ship or vessel or any shares thereof, transfers of goods in ordinary course of business of any trade or calling, bills of sale of goods in foreign parts or at sea, biUs of lading, India warrants, warehouse-keeper's certificates, warrants or orders for the delivery of goods, or any other documents used in the ordinary course of business as proof of the possession or control of goods, or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of such document to transfer or receive goods thereby represented : Personal chattels. — The expression "personal chattels" shall mean goods, furniture, and other articles capable of complete transfer by delivery, and (when separately assigned or charged) fixtures and growing crops, but shall not include chattel interests in real estate nor fixtures (except trade machinery, as hereinafter defined), when assigned together with a freehold or leasehold interest in any land or building to which they are affixed, nor growing crops when assigned together with any interest in the land on which they grow, nor shares or interest in the stock, funds or securities of any Government, or in the capital or property of incorporate or joint-stock companies, nor choses in action, nor any stock or produce upon any farm or lands which by virtue of any covenant or agreement or of the custom of the country ought not to be removed from any farm where the same are at the time of making or giving of such bill of sale : Apparent possession. — Personal chattels shall be deemed to be in the " apparent possession " of the person making or giving a bill of salcj so long as they remain or are in or upon any house, mill, warehouse, building, works, yard, land, or other premises occupied by him, or are uged or enjoyed by hijB STATUTES, 167 in any place whatever, notwitlistanding that formal possession thereof may- have been taken by or given to any other person (o) : Note.—Ths Act of 1878 has been amended by the Bills of Sale Act, 1882, but the Act of 1882 only relates to biUs of sale by way of security, and does not affect sales within the meaning of the Sale of Goods Act. The Bills of Sale Acts, 1890 and 1891, merely exempt certain mercantile letters of hypothecation from the definition of bill of sale. The Bills of Sale Acts strike at documents, and not at the transactions themselves (jj). When the seUer of goods remains in possession of them, and the buyer has to base his title or right to possession on some document which comes within the definition of a bill of sale, the document must be registered, in accordance with the Act of 1878. If it be not so registered, the contract, though valid as between the parties, is void as against the seller's execution creditors, trustee in bankruptcy, or assignee for the benefit of creditors. See Reed on Bills of Sale, where all the authorities are exhaustively reviewed. It may be noted that where the seller remains in possession, an entry of the sale by the auctioneer, or a note of the contract drawn up by the sheriff who has sold privately, constitutes a bill of sale (g). A delivery order for furniture is not a biU of sale (r), nor is an unregistered transfer of a ship or vessel (s), nor a letter of Ken to bankers (t). THE MERCHANDISE MARKS ACT, 1887. (SO & 51. Vict. c. 28.) An Act to consolidate and amend the Law relating to Fraudulent Marks on Merchandise. [23rd August, 1887.] Sect. 17. — Implied warranty on sale of marked goods. — On the sale or in the contract for the sale of any goods to which a trademark, or mark, or trade description has been applied, the vendor shall be deemed to warrant that the mark is a genuine trademark and not forged or falsely applied, or that the trade description is not a false trade description within the meaning of this Act, unless the contrary is expressed in some writing signed by or on behalf of the vendor, and delivered at the time of the sale or contract to and accepted by the vendee. Note. — See sect. 14 (1), ante, p. 42, which saves the section. (o) As to distinction between apparent possession and " possession, order, and disposition " in the reputed ownership provision in bankruptcy, see Ancona v. Rogers (1876), 1 Ex. D., at p. 291, 0. A. ( p) North Central Waggon Co. v. Manchester By. (188T), 35 Oh. D., at p. 207. (g) Be Boberts (1887), 36 Oh. D. 196 (auctioneer) ; Ex p. Blandford (1893), 10 Morrell, 231 (sheriff). (r) Origg v. National Guardian Assur. Co. (1891), 3 Oh. 206. (s) Oapp V, Bond (1887), 19 Q. B. D. 200 (dumb-barge which did not require registration under Merchant Shipping Act). (t) Ex p. Carter, [1905] 2 K. B. 881. 168 APPENDIX I. THE STAMP ACT, 1891. (54 & 55 Vict. c. 39.) An Act to consolidate the Enactments granting and relating to the Stamp Duties' wpon Instruments, and certain other Enactments relating to Stamp Duties. ■ [21st July, 1891.] Agreements. Sect. 22.— Duty may be denoted by adhesive stamp. — The duty of sixpence upon, an agreement may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the agreement is first executed. Bills of Lading. Sect. 40. — (1.) Bills of lading — A bill of lading is not to be stamped after the execution thereof. (2.) Every person who makes or executes any bill of lading not duly stamped shall incur a fine of fifty pounds. Receipts. Sect. 101. — (1.) Provisions as to duty upon receipts.-^For the purpose of this Act the expression "receipt" includes any not«, memorandum, or writing whereby any money amounting to two pounds or upwards, or any bill of exchange or promissory note for money amounting to two pounds or upwards, is acknowledges or expressed to have been received or deposited or paid, or whereby any debt or demand, or any part of a debt or demand, of the amount of two pounds or upwards, is acknowledged to have been settled, satisfied, or dis- charged, or which signifies or imports any such acknowledgment, and whether the same is or is not signed with the name of any person. (2.) The duty upon a receipt may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the receipt is given before he delivers it out of his hands. Sect. 102. — Terms upon which receipts may be stamped after execution. — A receipt given without being stamped may be stamped with an impressed stamp upon the terms following ; that is to say, (1.) Within fourteen days after it has been given, on payment of the duty and a penalty of five pounds ; (2.) After fourteen days, but within one month after it has been given, on payment of the duty and a penalty of ten pounds ; and shall not in any other case be stamped with an impressed stamp. ■ Sect. 103. — Penalty for offences in reference to receipts. — If any person (1.) Gives a receipt liable to duty and not duly stamped ; or (2.) In any case where a receipt would be liable to duty refuses to give a receipt duly stamped ; or (3.) Upon a payment to the amount of two pounds or upwards gives a receipt for a sum not amounting to two pounds, or separates or divides the amount paid with intent to evade the duty ; he shall incur a fine of ten pounds. STATUTES. 169 Warrant fw Goods. Sect. 111. — (1.) Provisions as to warrant for goods.— For the purpose of this Act the expression" warrant for goods " means any document or writing, being evidence of the title of any person therein named, or his assigns, or the holder thereof, to the property in any goods, wares, or merchandise lying in any ware- house or dock, or upon any wharf, and signed or certified by or on behalf of the person having the custody of the goods, wares, or merchandise. (2.) The duty upon a warrant for goods may be denoted by an adliesive stamp, which is to be canceUed by the person to whom the instrument is made, executed, or issued. (3.) Every person who makes, executes, or issues, or receives or takes by way of security or indemnity, any warrant for goods not being duly stamped, shall incur a fine of twenty pounds. SCHEDULE £ s. d. Ageeement, or any Memorandum of an Agreement, made in England or Ireland under hand only, or made in Scotland with- out any clause of registration, and not otherwise specifically charged with any duty, whether the same be only evidence of a contract, or obligatory upon the parties from its being a written instrument 006 Exemptions. (1.) Agreement of memorandum the matter whereof is not of the value of £5. (3.) Agreement, letter, or memorandum made for or relating to the sale of any goods, wares, or merchandise (u). Bill of Lading of or for any goods, merchandise, or effects to be exported or carried coastwise 6 And see sect. 40. (u) The exception includes a guarantee for the price of goods sold {Warrington v. Furbor (1807), 8 East, 242; Chanter v. Dickinson (1843), 5 M. & Gr. 253, discussing previous cases ; cf. Bein v. Lane (1867), L. R. 2 Q. B. 144, at p. 150, Blackburn, J.). It includes an indemnity against the claim of a third person to goods sold {Heron v. Orainger (1803), 5 Esp. 269) ; and an agreement for the sale of an undivided moiety of a horse {Ma^son v. Short (1835), 2 Bing. N. C. 118). The exception .does not ex- tend to a contract under seal {Clayton v. Burtenshaw (1826), 5 B. & C. 41, at p. 46, per Bayley, B.) ; nor does it apply to any agreement which comes specifically under any other heading in the Schedule charged with duty, County of Durham Electrical Co. V. Inland Bevenm, [1909J 1 K. B. 737, affirmed 2 K. 0., [1909] 604, C. A. By s. 7 of the Einanoe Act, 1907 (7 Edw. 7, c. 13), hire-purchase agreements are excluded from this exemption, and, if not under seal, are to be stamped as agreements, and, if under seal, as deeds. See further Alpe's Stamip Laws, ed, 12, pp. 56-59, 170 APPENDIX I. & s. d. Dock "Warrant. See Warrant for Goods. Eeceipt given for, or upon the payment of, money amonnting to £2 or upwards 002 lExempiions. ****** (9.) Receipt given upon any bUl or note of the Bank of England or the Bank of Ireland. (11.) Receipt endorsed or otherwise written upon or contained in any instrument liable to stamp duty, and duly stamped, acknowledging the receipt of the consideration money therein expressed, or the receipt of any principal money, interest, or annuity thereby secured or therein mentioned. "Warrant tor Goods 003 Exemptions. (1.) Any document or writing given by an inland carrier acknowledging the receipt of goods conveyed by such carrier. (2.) A weight note issued together with a duly stamped warrant, and relating solely to the same goods, wares, or merchandise. And see sect. 111. Note. — The duty on receipts is increased from Id. to 2d. by sect. 34 of the Finance Act, 1920 (10 & 11 Geo. 5, c. 18), THE riNANCE ACT, 1901. (1 Edw. 7, c. 7.) Sect. 10. — (1.) Addition or deduction of new or altered duties in the ease of con- tract. — "Where any new customs import duty or new excise duty is imposed, or where any customs .import duty or excise duty is increased, and any goods in respect of which the duty is payable are delivered after the day on which the new or increased duty takes effect in pursuance of a contract made before that day, the seller of the goods may, in the absence of agreement to the contrary, recover, as an addition to the contract price, a sum ec[ual to any amount paid by him in respect of the goods on account of the new duty or the increase of duty, as the case may be. (2.) Where any customs import duty or excise duty is repealed or decreased, and any goods affected by the duty are delivered after the day on which the duty" ceases or the decrease in the duty takes efEect in pursuance of a contract made before that day, the purchaser of the goods, in the absence of agreement to the contrary, may, if the seller of the goods has had in respect of those goods the benefit of the repeal or decrease of the duty, deduct from the contract price a sum equal to the amount of the duty or decrease of duty, as the case may be. STATUTES. 171 (3.) Wliere any addition to or deduction from the contract price may be made under this section on account of any new or repealed duty, such, sum as may be agreed upon or in default of agreement determined by the Commissioners of Customs in the case of a customs duty, and by the Commissioners of Inland Eievenue in the case of an excise duty, as representing in the case of a new duty any new expenses incurred, and in the case of a repealed duty any expenses saved, may be included in the addition to or deduction from the contract price, and may be recovered or deducted accordingly. (4.) This section shall be deemed to have had efEect as from the nineteenth day of April nineteen hvindred and one, and section twenty of the Customs Consolidation Act, 1876, and section eight of the Finance Act, 1900, are hereby repealed. Note. — Sect. 10 of the Finance Act, 1901, is amended by sect. 7 of the Finance Act, 1902 (2 Edw. 7, c. 7), which is as foUows : — " Section ten of the Finance Act, 1901, applies although the goods have undergone a process of manufacture or preparation, or have become a part or ingredient of other goods." Under sect. 4 of the Finance Act, 1908 (8 Edw. 7, o. 16), excise has been transferred from the Inland Revenue to the Customs, and the Commissioners are now known as the Commissioners of Customs and Excise. As to the construction of sect. 10 of the Act of 1901, see Cm-n Products Co. V. Fry, [1917] W. N. p. 224; AmeHcan Produce Go. v. Boehm, Ltd. (1919), 35 T. L. R. 924. THE FINANCE ACT, 1905. (5 Edw. 7, c. 4.) Sect. 5. — (2.) Abolition of stamp duty on delivery orders. — The stamp duty charged by the Stamp Act, 1891, under the heading " Delivery Order " in the First Schedule to that Act shall cease to be chargeable. Note. — Consequential on this provision the Act of 1905 repeals sects. 69-71 of the Stamp Act of 1891. THE CRIMINAL APPEAL ACT, 1907. (7 Edw. 7, c. 23.) Sect. 6. — Be-vesting and restitution of property on conviction. 56 & 57 Vict. c. 71. — The operation of any order for the restitution of any property to any person made on a conviction on indictment, and the operation in case of any such conviction, of the provisions of sub-section (1) of section twenty -four of the Sale of Goods Act, 1893, as to the re-vesting of the property in stolen goods on conviction shall (unless the Court before whom the conviction takes place direct to the contrary in any case in which, in their opinion, the title to the property is ^ot in dispute) be suspended— 172 APPENDIX I. (a) in any case vintil the expiration of ten days after the date of the conviction; and (6) in oases where notice of appeal or leave to appeal is given within ten days after the date of conviction, until the determination of the appeal ; and in oases where the operation of any such order, or the operation of the said provisions, is suspended until the determination of the appeal, the order or provision, as the case maybe, shall not take effect as to the property in question if the conviction is quashed on appeal. Provision may be made by rules of court for securing the safe custody of any property, pending the suspension of the operation of any such order or of the said provisions. (2.) The Court of Criminal Appeal may by order annul or vary any order made on a trial for the restitution of any property to any person, although the conviction is not quashed ; and the order if annulled, shall not take effect, and, if varied, shall take effect as so varied. Note. — See sect. 24 of the Sale of Goods Act, ante, p. 70, and J2. v. Elliott, [1908] 2 K. B. 452. THE LARCENY ACT, 1916. (6 & 7 Geo. 5, c. 50.) Sect. 45. — (1.) Bestitntion. — If any person guilty of any such felony or misdemeanor as is mentioned in this Act in stealing, taking, obtaining, extorting, embezzling, converting, or disposing of, or in knowingly receiving, any property, is prosecuted to conviction by or on behalf of the owner of such property, the property shall be restored to the owner or his representative. (2.) In every case in this section referred to the court before whom such offender is convicted shall have power to award from time to time writs of restitution for the said property or to order the restitution thereof, in a summary manner : Provided that where goods as defined in the Sale of Goods Act, 1893, have been obtained by fraud or other wrongful means not amounting to stealing, the property in such goods shall not revest in the person who was the owner of the goods or his personal representative, by reason only of the conviction of the offender. And provided that nothing in this section shall apply to the case of — (a) Any valuable security which has been in good faith paid or discharged by some person or body corporate liable to the payment thereof, or, being a negotiable instrument, has been in good faith taken or received by transfer or delivery by some person or body corporate for a just and valuable consideration without any notice or without any reasonable cause to suspect that the same had been stolen ; (6) Any offence against sections twenty, twenty-one, and twenty -two of this Act. (3,) On the rpstitution of ■any stolen property, if it appears to the court by STATUTES. 173 tte evidence that the offender has sold the stolen property to any person, and that such person has had no knowledge that the same was stolen, and that any moneys have heen taken from the offender on his apprehension, the court may, on the application of such purchaser, order that out of such moneys a sum not exceeding the a4lount of the proceeds of such gale be delivered to the said purchaser. Note. — Sects. 20, 21, and 22, mentioned above, relate to directors, trustees, and factors. For definition of " stealing," see sect. 1 of the Lareny Act, 1916. See B. V. Justices of Cent. Criminal Cowrt (1886), 18 Q. B- D. 314, C. A., as to proceeds of stolen goods, and see sect. 24 of the Sale of Goods Act, ante, p. 70, and notes thereto, and Arohbold's Crim. Plead, and Evidence, ed. 25, p. 284. As to summary proceedings before justices, see sect. 27 (3) of the Summary Jurisdiction Act, 1879 (42 & 43 Vict. c. 49), as supplemented by sect. 9 of the Criminal Law Amendment Act, 1867 (30 & 31 Vict. c. 35). ( 174 ) APPENDIX II.— NOTES. Note A. — On the Use of the Teums Contract, Condition, and Warkanty. I. — Contkact. Contract. — The disposition of the best modem writers appears to be to define " contract " as an agreement enforceable by law. It cannot be questioned that contract is a species of which agreement is the genus. But having regard to the ordinary language of English oases, the definition seems rather too narrow, for it excludes the case of agreements of impierf ect obligation — as, for instance, a verbal agreement to sell goods above the value of £10, which is unenforceable till part performance, or an agreement against which the Statute of Limitations may be pleaded. In ordinary legal language all these agreements would be described as contracts (see e.g. the language of the 17th sect, of the Statute of Frauds). They all have certain legal consequences. They are cognisable, though not enforceable, by law. But to define a contract as an agreement intended to be enforceable, and, in fact, cognisable by law, though correct according to ordinary language, appears to be too vague for a scientific defini- tion. Having regard to the existing use of the term, any precise definition must be more or less arbitrary. The so-called " contracts of record " are not contracts within any legitimate meaning of the term. Citodioni. 1. — " A contract is a speeeh betwixt parties that a thing which is not done be done."— Tfee Mirror, ch. ii., s. 27. 2. — " In every contract there must be a quid pro quo, for contractus est quasi actus contra actum."— Co. Litt., 47 b. 3. "An agreement upon sufficient consideration to do or not to do a. particular thing." — Blackstone's Com., bk. ii. ch. 30, § 9, adopted by Kindersley, V.C, in Saynes v. Eaynes (1861), 1 Dr. and Sm., p. 433. See Fry on Specific Performance, 3rd ed., p. 1. _ _ 4. '• A contract or agreement is when a promise is made on one side, and assented to on the other, or when two or more persons enter into engagement with each other by a promise on either side." — Stephen's Com., bk. ii. ch. 5. N0TJS8. 175 5- — "^Contract" is a term of uncertain extention. Used loosely, it is equivalent to ' convention ' or ' agreement.' Taken in the largest signification wMcli can be given to it correctly, it denotes a convention or agreement wMch the courts of justice wiU enforce. That is to say, it bears the meaning which was attached to it originally by the Roman jurisconsults." — Austin's Jurispru- dence, vol. ii. p. 1015. 6. — "Un contrai est une esp^ce de convention . . . une convention par laquelle les deux parties, reciproquement, ou seulement I'une des deux, promettent et s'engagent envers I'autre a lui donner quelque chose, ou a faire ou ne pas h faire quelque chose." — Pothier, Traite des Obligations, § 3, adopted ui Addison an Contracts. 7. — " A ' contract ' is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbear- ances on the part of the other or others." — Anson on Contracts, 6th ed., p. 9. 8. — " Every agreement and promise enforceable by law is a contract." — PollocJe on Contracts, 4th ed., p. 1. 9. — " An agreement enforceable by law is a contract." — Indian Contract Act, s'. 2. 10. — " A contract is an agreement to do or not to do a certain thing. It is essential to the existence of a contract that there should be (1) parties capable of contracting ; (2) their consent ; (3) a lawful object ; and (4) a sufficient cause or consideration." — New York Draft Civil Code, §§ 744, 745. 11. — " Le contrat est une convention par laquelle une ou plusieurs personnes s'obligent, envers une autre a donner, a faire, ou ne pas a faire quelque chose." — French Civil Code, art. 1101 ; see Rogrons' Code Civil Explique. 12.-^" Le contrat est I'accord de deux on plusieurs personnes pour former regler ou delier entre ellus un lien juridique." — Italian Civil Code, art. 1098, translated by Ifuc. 13. — " 'When both parties wUl the same thing, and each communicates his will to the other, with a mutual engagement to carry it into effect, then, and not tin then, an agreement or contract T)etween the two is constituted." — Per Kindersley, V.C, in Eaynes v. Eaynes (1861), 1 Dr. & Sm. 426, p. 433 ; cf Morrison v. Universal Mar. Ins. Co. (1872), L. R. 8 Ex., at p. 60, per Cleasby, B. 14. — " I understand by a contract an agreement which the law wiU enforce, and I apprehend that, speaking generally, the law wiU enforce all agreements made upon good consideration or with certain solemnities which dispense with consideration. Agreement and consideration are thus elements which constitute a contract not under seal." — Per Stephen, J., ia Alderson v. Maddison (1880), 5 Ex. Div. 293, at p. 297. II. — Condition. Conditions. — The term "condition" as applied to contracts appears to mean indifferently (a) an uncertain event on the happening of which the obligation 176 APPENDIX It. of the contract is to depend, and (b) the stipulation in the contract making its obligation depend on the happening of the event. Though the Act uses the term condition, it does not define it. The definition belongs to the general law of contract. The term seems to have been imported into the law of contract from the law of conveyancing. In conveyancing a distinction was drawn between " conditions " and " covenants " {Bacm's Ahr., 7th ed., vol. ii. p. 116), which, in contracts, has now become obliterated. The classification of conditions in English law is imperfect and unsatis- factory. The division of conditions, into positive and negative (e.g. if my horse wins the Derby — if my horse does not win the Derby), is obvious, and requires no comment. Lord Justice James divides conditions into conditions precedent, subsequent, and inherent, a classification which seems to involve a cross-division (a). Ordinarily they are divided into conditions precedent and conditions subsequent, that is to say, conditions which must be fulfilled before the obUgatibn of the contract arises, and conditions on the happening of which an existent obligation is dissolved. This division corresponds generally, in sale at any rate, with the distinction drawn by Scotch law and the Continental codes, between suspensive and resolutive conditions (6). Conditions precedent are again divided into conditions precedent strictly so called and concurrent conditions. A condition is concurrent where the parties to a contract have reciprocally to perform certain acts at the same time. In the case of the failure of one party to perform his part of th^ contract it is sufficient if the other party shows that Ee was ready and willing to perform his part, although he did not actually perform it. Pothier's further division of conditions precedent into potestative, casual, and mixed conditions, though followed in Scotland and by the Continental codes, is not recognised in England. But for accuracy some such subdivision is required. There is an important distinction between what may be called promissory conditions, and contingent or casual conditions. In the latter case the obligations of both parties are suspended till the event takes place. In the former case the non-performance of the condition by the promisor (unless excused by law) gives a right to the promisee to treat the contract as repudiated, that is to say, he is discharged from his part of the contract, and, further, he has a claim for damages. In the one case the obligations of the contract do not attach. In the other case the contract is broken. If A. says to B., " I will hire your horse and trap to-morrow if the day be fine," and B. assents to this, the obligations of both parties depend on the agreed conditions being fulfilled : (o) Exp. Collins, Be Lees (1875), L. E. 10 Ch. App. 867, at p. 372 (bill of sale case). (6) PotUer's OhUgatims, by Evans, p. 112; French Code Civil, Arts. 1186-1171; Italian Civil Code, Arts. 1157-1169 ; Bell's Principles of the Law of Scotland ed 9 pp. 47-50. ' ' ' NOTES. 177 but if A. agrees with B. to sell him a ton of hay and deliver it " on Monday for certain," there is a breach of contract by A. if the hay be not so delivered. In the older cases promissory conditions were referred to as "dependent covenants or promises " and were contrasted with- independent covenants or promises, namely, stipulations the breach of which gives rise to a claim for damages, but not to a right to treat the coiitract as repudiated. Now the term " dependent promise " appears to be merged in the wider term " condition precedent." The Indian Contract Act discards the term " condition," but seeks to preserve the distinction referred to above by dealing separately with " contingent contracts " and " reciprocal promises." The same result is arrived at by the distinction which is sometimes drawn between conditions of the contract, and conditions in the contract, III. — Wakeanty. Warranty. — The term " warranty " seems to have beem imported into the law of contract from the old law of conveyancing, where it signified an express or implied covenant by the grantor of real estate, to indemnify the grantee if he should be evicted. Its meaning has been considerably widened in the law of contract, and it is now a term of very uncertain signification. It is sometimes used as strictly equivalent to condition precedent, though it is sometimes sought to contrast it with condition precedent, or rather with a certain kind of condition precedent, namely, a promissory condition precedent. When used in the latter sense the distinction between " condition " and " warranty " corresponds with the distinction drawn by the older cases between what were known as "dependent" and "independent" covenants or promises. In insurance law its use is curious. When it relates to any undertaking by the assured it is used to denote a condition precedent of the strictest kind, the breach of which destroys the contract, as in the case of a sailing warranty. But the term is also used as a mere term of exclusion or limitation, as where "•oods are insured, warranted free from particular average under 3 per cent. The chief controversy over the proper meaning of the term " warranty " has arisen in the law of sale, and the ambiguity of its use appears to result from the want of clear distinction in English law between sale— i.e. the transfer of property in a thing — and the contract by which that transfer is effected. The term is used in two different senses, and judges and text writers continually oscillate between them. First, the term " warranty " is opposed to the term " condition precedent," and denotes a stipulation in a contract of sale, the breach of which gives rise to a claim for damages, but not to a right to reject the goods ai^d treat the contract as repudiated. This is the meaning which, after much consideration, has been adopted by the Act as regards England and Ireland (see sects. 11 and 62) (c). The objection to this use of the term appears to be that it does not cover the whole field of independent stipulations. For instance, where there is a contract (c) But note the s^vipg for Scotland }n t}iose sections. 178 APPENDIX II. ' for instalment deliveries the obligation to pay for a partieiQar instalment may be an independent promise, but it would not ordinarily be called a warranty. Secondly, the term " warranty " is used to denote any auxiliary stipulation in a contract of sale, and in particular a stiptilation relating to the title to, or the quality, condition, or fitness of, goods contracted to be sold. In this sense of the term a breach of warranty may give rise either to a mere claim for damages, or to a right to reject the goods, and treat the contract as repudiated according as the goods may have been accepted or not. The weight of judicial authority is in favour of the first meaning,- though etymologicaUy and historically the second meaaing appears more correct. [Warranty = Guarantee]. The objection to this use of the term is that it does not mark the distinction between a condition precedent and a collateral promise or undertaking. Using the term in the first sense, it is to be noted that many stipulations which in their inception are conditions {i.e. thei implied undertakings as to merohantableness and fitness for a particular purpose) may become contracted into warranties by virtue of subsequent events, and this fact doubtless explains much of the confusion of language which the term has given rise to. Citatiam. 1. — " A warranty (concerning freeholds and inheritances) is a covenant real annexed to lands or tenements whereby a man and his heirs are bound to warrant the same, and either by voucher or by judgment in a writ of warrantia chartse to yield other lands and tenements to the value of those that shall be evicted by a former .title, else it may be used by way of rebutter." — Bacon's abridgement, 7th ed., pp. 356, 359, 361 ; and see Williams's Beal Property, 16th ed., p. 513. 2. — " A warranty is an engagement by which a seller assures to a buyer the existence of some fact affecting the transaction, whether past, present, or future."— New York Draft Code, § 877. 3. — "A warranty, properly so called, can only exist where the subject- matter of the sale is ascertained and existing, so as to be capable of being inspected at the time of the contract, and is a collateral engagement that the specific thing so sold possesses certain qualities, but the property passing by the contract of sale of a breach of the warranty cannot entitle the vendor to rescind the contract, and re-vest the property in the vendor without his consent. . . . But when the subject-matter of the sale is not in existence, or not ascertained at the time of the contract, an engagement that it shaU, when existing or ascertained, possess certain qualities, is not a mere warranty, but a condition, the performance of which is precedent to any. obligation on the vendee under the contract, because the eisistence of those qualities, being part of the description of the thing sold, becomes essential to its identity, and the vendee cannot be compelled to receive and pay for a thing different from that for what he contracted." — Notes to Cutter v. Powell, 2 Smith, Lead. Cas, 7th ed., p. 30. NOTES. 179 4. — " An express warranty is a stipulation inserted in writing on the face of the policy, upon the literal truth or fulfilment of which the validity of the entire contract is dependent. These written stipulations either allege the existence of some fact or state of things at the time, or previous to the time, of making the policy, or they undertake for the happening of future events, or the performance of future acts. In the'former case Mr. Marshall terms the stipula- tion an affirmative, and in the latter a promissory warranty." — Arnould's Marine Insurance, 6th ed., p. 599 ; Cranston v. Marshall (1850), 5 Exch. 395, at p. 402 ; and see Barnard v. Faber (1893), 1 Q. B., at p. 343, per Ld. Bowen, as to fire insurance. 5. — "When it appears that the consideration has been executed in part, that which before was a warranty or condition precedent, loses the character of a condition, or, to speak more properly, ceases to be available as a condition and becomes a warranty in a narrower sense of the word, viz. a stipulation by way of agreement for the breach of which a compensation must be sought in damages."— Notes to Williams' Saunders, vol. i. p. 554, cited and approved; Eeilbutt V. Hickson (1872), L.B. 7 C.P. 438, at p. 450; ef. Stanton y.Bichardson (1872), L. R. 7 C. P., at p. 436. 6.—" If upon a treaty about the buying of certain goods, the buyer should ask the seller if he would warrant them to be of such a value and his own goods, and the seller should warrant them, and then the buyer should demand the price and the seller should set the price, and then the buyer should take time for two or three days to consider, and then should come and give the seller his price, though the warranty here was before the sale yet this wiU be well, because the warranty is the ground of the treaty, and this is warrantizando venditit." — Lysney v. Selby (1703), 2 Ld. Raym. 1118, 7. « It was rightly held by Holt, C.J., and has been uniformly adopted ever since, that an affirmation at the time of a sale is a warranty, provided it appear on evidence to have been so intended."— Per Buller, J., in Pasley v. Freeman (1789), 3 T. E., c. 1, p. 57. 8. " Here, when F., a mutual acquaintance of the parties, introduced them to each other, he said, ' Mr. J. is ia want of copper sheathing for a vessel,' and one of the defendants answered, ' We will supply him weU.' As there was no subsequent communication, that, substituted a contract and amounted to a warranty. I wish to put the case upon a broad principle. If a man sells an article he thereby warrants that it is merchantable —that is, fit for some purpose. If he sells it for a particular purpose he thereby warrants it fit for that purpose. ... In every contract to furnish manufactured goods, however low the price, it is an implied term that the goods shall be merchantable."— Per Best, C.J., Jones v. Bright (1829), 5 Bing. 533, at p. 543. 9._" Although the vendee of a specific chattel, delivered with a warranty, may not have a right to return it, the same reason does not apply to cases of executory contracts, when an article, for instance, is ordered from a manufac- turer, who contracts that it shaU be of a certain quaHty, or fit for a certain 180 APPENDIX II. purpose, and the article sent is such as is never completely accepted by the party ordering it."— Per Lord Tenterden, Street v. Blay (1831), 2 B. & Ad. 456, at p. 463 (horse case). 10. — "A good deal of confusion has arisen in many of the cases on this subject from the unfortunate use made of the word 'warranty.' Two things have been confounded together. A warranty is an express or implied state- ment of something which the party undertakes shall be part of a contract ; and though part of the contract, yet collateral to the express object of it. But in many of the cases, some of which have been referred to, the circumstances of a party selling a particular thing by its proper description has been called a warranty, and the breach of such contract a oreaoh of warranty ; but it would be better to distinguish such cases as a non-compliance with a contract which a party has engaged to fulfil, as if a man offers to buy peas of another, and he sends him beans, he does not perform his contract ; but that is not a warranty ; there is no warranty that he should sell him peas ; the contract is to sell peas, and if he sends him anjrthing else in their stead, it is a non-performance of it." —Per Lord Abinger, in Chanter v. Hopkins (1838), 4 M. & W. 399, at p. 404. 11. — "We avoid the term ' warranty,' because it is used in two senses, and the term ' condition,' because the question is whether that term is applicable. Then the effect is that the defendants" required and the plaintiff gave his undertaking that no sulphur had been used. This tindertaking was a preliminary stipulation ; and if it had not been given, the defendants would not have gone on with the treaty which resulted in the sale. In this sense it was the condition upon which the defendants contracted, and it would be contrary to the intention expressed by this stipulation that the contract should remain valid if sulphur had been used. The intention of the parties governs in the making and in the construc- tion of all contracts. If the parties so intend, the sale may be absolute, with a warranty superadded, or the sale may be conditional to be null if the warranty is broken ; and upon this statement of facts we think the intention appears to have been that the contract should be null if sulphur had been used." — Per ' Brie, C.J., Bannerman v. White (1861), 31 L. J. C. P. 28, at p. 32. 12.— " I agree with what Maule, J., and Crowder, J., say in Hopkins v. Tanqueray. Crowder, J., says, in the plainest terms, in that case, that conversa- tion ' was a mere representation, and was evidently not made with an intention to warrant the horse. A representation to constitute a warranty, must be shown to have been intended to form part of the contract.' It seems to me that that is perfectly correct." — Per Martin, B., in Stueley v. Bailey (1862). 31 L. J., Ex. 483, at p. 489. 13. — " But with respect to statements in a contract descriptive of the subject- matter of it, or of some material incident thereof, the true doctrine established by principle, as well as authority, appears to be, generally speaking, that if such descriptive statement was intended to be a substantive part of the contract, it is to be regarded as a warranty, that is to say, a condition on the failure or non- perfonnance of which the other party may; if he be so minded, repudiate the NOTES. 181 contract in ioto, and be so relieved from performing his part of it, provided it has not been partially executed in his favour. If, indeed, he has received the whole, or any substantial part, of the consideration for the promise on his part, the warranty loses the character of a condition, or, to speak more properly, perhaps, ceases to be available as a condition, and becomes a warranty in the narrow sense of the word, namely, a stipulation by way of agreement for the breach of which a compensation must be sought in damages." — Per Williams, J., in Behn v. Bnrness (1863), 32 L. J. Q. B. 204, at p. 206. 14. — " The wools are guaranteed ' about similar to samples.' Now such a clause may be a simple guarantee or warranty, or it may be a condition — generally speaking when the contract is as to any goods, such a clause is a condition going to the essence of the contract ; but when the contract is as to specific goods the clause is only collateral to the contract, and is the subject of a cross action or matter in reduction of damages. Here there is, I think, merely a warranty as distinguished from a condition." — Per Blackburn, J., Seyworth v. Hutchinson, (1867), L. E. 2 Q. B. 447, at p. 451. Note B. — Constktjction op Terms and Conditions. Construction of contracts of sale. — There is no canon of construction peculiar to contracts of sale. In a case arising on a contract of sale where the material words were "delivering on April 17th ; complete 8th May," Kelly, C.B., says : " The rule of construction applicable in general to aU written contracts is, that they are to be construed according to the real intention of the parties, to be collected from the language they have used; that effect is to be given, if possible, to every word used, and that every word is to be interpreted according to its natural and ordinary meaning, unless such construction would be contrary to the manifest intention of the parties, or would necessarily lead to some contradiction or absurdity. But this rule, though applicable to contracts in general, must be received with some qualification, when the contract or a portion of the contract in question consists of an incomplete sentence, ambiguous in its terms, and upon which a literal construction of every word would either be impracticable or would leave the contract indeterminable and uncertain. And such is the case with the contract in question, which I think is to be con- strued according to what we can collect to have been the substantial intention of the parties, applying our common sense, and such knowledge as we may 'possess, to the language in which they have expressed themselves" (d). The inference in mercantile contracts, says Kennedy, L. J., " is that each party will do what is mercantilely reasonable " (e). The rule for construing conditions as to delivery and payment is thus given (d) Coddmgton v. PaUologo (1867), L. R. 2 Ex. 193, at p. 200 ; cf.Honckv. Mullet (1881), 7 Q. B. D. 92, at p. 103, per Lord Esher. And see notes to sect. 55, ante, p. 126. (e) Biddle Bros. v. E. Clemens Horst & Co., [1911] 1 K. B. at p. 958, referring to The Moorcock (1889), 14 P. D. 64, 67 0. A. 182 APPENDIX II. by Williams, J.; "Where there is an agreement to deliver to a yendee on a certain condition and the condition (without any fault on the part of the vendor) never comes to pass, it is plain that he will not be liable for a non- delivery. But where the agreement is absolute or conditional on an event which happens, the vendor wDl be liable for a breach, although he could not help the non-performance ; for it is his own heedlessness if he runs the risk of undertaking to perform an impossibility, when he might have provided against it by his contract " (/). And see note C, post. p. 189. Some useful rules are given by Stephen, J., for the construction of conditions incorporated by reference into contracts of sale in Watkins v. B/ymill (1879), 10 Q. B. D. 178, at p. 188. The following terms and stipulations, among others, have been judicially construed, namely — Terms as to shipment, i.e. Stipulations judicially construed. — " The names of the vessels to be declared as soon as the wools are shipped." {g). " Shipped per Biletta as per bill of lading dated September or October " (h). " Tor shipment in June and [or] July " (i). " Shipment by steamer or steamers during February " (Ic). "■ To be shipped during the months of March ^^ AprU " Q). "To be shipped by sailer or sailers from the Philippine Islands between May 1st and July 31st " (m). ^" Clearance not later than 31st May " (■»). " To be shipped [from Egypt] during January, 1900, per steamship Orlando, and to be delivered in United Kingdom " (o). As to arrival of ship or cargo, i.e. " On arrival " {p). " 150 tons of soda to arrive ex Daniel Grant " (q). (/) Hale v. Bawson (1858), 27 L. J. C. P. 189, at p. 191 (sale of cargo to arrive by ship) ; cf. Nickoll v. Ashton, [1900] 2 Q. B. 298 (sale of goods to be shipped by a particular ship, which strands before shipment). And see note to sect. 7 as to im- possibility and supervening illegality. {g) Graves v. Legg (1854), 9 Exoh. 709. (h) Gatiomo v. Adams (1862), 12 C. B. (N.S.) 560. (i) Alexander v. Vanderzee (1872), L. E. 7 C. P. 530, Ex. Ch. .(&) Brandt v. Lawrence (1876), 1 Q. B. D. 344, 0. A. ; but see Beuter v. Sala (1879), 4 C. P. D. 239, C. A. {I) Bowes V. Shand (1877), 2 App. Gas. 455. (m) Ashmore v. Cox, [1899] 1 Q. B. 436. (TO) TheVman Frires v. Texas Flour Mill Co. (1900), 5 Com. Gas. 321, C. A. (o) Nickoll v. Ashton, [1900] 2 Q. B. 298. (p) Alewyn v. Pryor. (1S26), E. & M. 406; Boyd v. Siffkin (1809), 2 Gamp. 326. (2) Johnson v. Macdonald (1842), 9 M. & W. 600. NOTES. 183 "100 hogsheads of oil expected to arrive by the ship Besoluie from Madras " (r)., " 100 bales of cotton now on passage from Singapore and expected to arrive at London per the Bavenscraig " (s). "50 cases ofitallow to be delivered on the safe arrival of the ship Elgin" (<). " The cotton to be taken from the q^uay " (m). " 600 tons of nitrate of soda expected to arrive at port of call per Precursor " (x). " To discharge at a safe port in United Kingdom, Manchester excepted "(y). Cargo expected to arrive by sailer from Bentos, " in case of non-arrival this contract to be void " (z). " Subject to safe arrival " (a). " Should the goods or any portion thereof be lost, this contract to be cancelled for the whole or each portion " (5). " Subject to ' force majeure ' " (66). As to pfiority of delivery and payment. "Payment, biU at two months from date of landing " (c). " To be paid for by cash in one month " (d). " Delivery forthwith ; payment, cash in 14 days from the making of the • contract " (e). Delivery order running, " we engage to deliver on presentation of this document " (/). " To be free delivered and paid for in 14 days in cash " (g). "Payment, cash in London in exchange for shipping documents " {h). " The balance in cash on right delivery at Rangoon " (i). (r) Fischel v. Scott (1854), 15 0. B. 69. (s) Oorrissen v. Perrin (1857), 27 L. J. C. P. 29. (i) Hale V. Bawson (1858), 27 L. J. C. P. 189; cf. Simond v. Braddon (1857), 2 C. B.N. S. 324. ^ ^ (u) NeillY. Whitworth (1865), 84 L. J. 0. P. 155, affirmed by Ex. Oh. (1866), L. R. 1 C. P. 684. (x) Smith V. Myers (1871), L. B. 7 Q. B. 139, Ex. Oh. (y) Be Goodhody (1900), 5 Com, Gas. 59, 0. A. (J) Wyllie V. Povah (1907), 12 Com. Oas. 317, 321. (a) Bamett v. Taveri & Co., [1916] 2 K. B. 390. (6) Clark v. Cox, McEwen & Co. (1919), 25 Com. Caa., 94 0. A. (bb) Be Comtoir Commerciel Anversois, [1920] 1 K. B. 868, 0. A. ; Le Beaupin v. Crispin & Co., [1920] 2 K. B. 714. (c) Alexander v. Oardner (1835), 1 Bing. N. 0. 671. {d) SpartaUv. Beneche (1850), 10 0. B. 212; but see Field v. LeleaM (1861), 30 L. J. Ex. 168, Ex. Oh., as to usage. (e) Staunton v. Wood (1851), 16 Q. B. 638. (/) Bartlett v. Holmes (1853). 22 L. J. 0. P. 182. {g) Godts V. Base (1855), 17 0. B. 229. (h) Tamvaco v. Lucas (1861), 30 L. J. Q. B. 234. (i) Calcutta Co. v. De Mattos (1863), 32 L. J. Q. B. 322. 184 APPENDIX 11. " Freight to be payable on right delivery of the cargo " (k). " Payment to be made in net cash in London in exhange for bills of lading- of each cargo or shipment " (I). Payment " by cash in exchange for shipping documents " (m). Payment "in cash on arrival in exchange for shippiag or railway docu- ments " (n). Payment net cash after inspection (o). " Terms net cash " in c.i.f . contracts (p). " Net cash against documents on arrival of the steamer " (g). As to time of delivery, i.e. ' ' Delivery at buyer's option in all April or sooner " (r). " 10 tons of oil to be delivered within the last 14 days of March " (s). " 5 tons of oilcake to be put on board directly " (t). " DeUvery forthwith " {u). Delivery " as required " {x). "Delivery on AprU 17th, complete 8th May " {y). " The lots to be cleared away within three days after the sale at the purchaser's expense " (z). " To be finished as soon as possible '\{a). One thousand tons of iron "direct port specification to be given in the- beginning of May " (6). As to cost of delivery. " Free on board a foreign ship " (c). " Free on board," or, " F. O. B." (d). {k) Paynter v. James (1867), L. B. 2 0. P. 348. • (1) Sanders v. Maclean (1883), 11 Q. B. D. 327, C. A. (m) Byam v. Ridley (1902), 8 Com. Oas. 105 (cargo of oodflsh). (re) PolmgU v. Dried Milk Co. (1904), 10 Com. Gas. 42. (o) Khan v. DucM (1905), 10 Com. Caa. 87. (p) E. Clemens Borst & Co. v. Biidle BrotTiers, [1912] A. C. 18 H. L. (" net cash " = net cash against documents, and see note to sect. 32 (3), ante, p. 86). (2) Stein Forbes & Co. v. Cminty Tailoring Co. (1916), 115 L. T. 215.. (r) Cox V. Todd (1825), 7 D. & B. 131. (s) Startup V. Macdonald (1843), 6 M. & G. 598, Ex. Ch. (tender at 8.30 on Saturday night). (t) Duncan v. Topham (1849), 8 C. B. 225. lu) Staunton v. Wood (1851), Q. B. 638. {x) Jones V. Gibbons (1853), 8 Exch. 920; Jackson v. Botax Motor Cycle Co., [1910] 2 K. B. 937, C. A. ; Boss Brotliers v. Shaw d) Co. (1917), 2 Ir. Bep. .367 ; Pearl Mill Co. V. Ivy Tarmery Co., [1919] 1 K. B. 78. (y) Coddington v. Paleologo (1867), L. E. 2 Ex. 193. (z) Woolfe V. Home (1877), 2 Q. B. D. 355, 0. A., distinguishing Attwood v. Emery (1856); 26 L. J. C. P. 73. > {a) HydrauUc Co. v. McEaffie (1878), 4 Q. B. D. 670, C. A. (fc) Kidston v. Monceau Iron Works (1902), 7 Com. Cas. 82. (c) WackerbaHh v. Masson (1812), 3 Camp. 270 ; and p. 86, ante. (d) Cowasjee v. Thompson (1845), 5 Moore, P. C. C, 165, see at p. 173 ; Brown v. NOTES. 185 " The cotton to be taken from the quay " (e). " Goods to be taken from the deck " (/). C. I. F. = at a price to cover " cost, freight, and insurance " {g). Deliyery on payment of freight '• and other conditions as per charter- party "W. " C. I. r. to buyer's wharf, Victoria Docks, London " {i). " Cost of stevedoring to be paid by the Government " (buyer) (k). " Free of customs formalities " {I). " War risk for buyer's account " (7r\). " Ex store " (mm). As to price. " 2^ per cent, discount for cash, the duty to be deducted " (n). " Market value " (o). " Terms — net cash, to be paid within six to eight weeks from date hereof " (p). " Without reserve '' (g). " The highest bidder to be the purchaser " (r). " Cash, or approved banker's bUls " (s). " Cash in a month less discount, or 4 months' bill at buyer's option " (t). " Approved acceptance to buyer's draft " (u) C. I, F. = at a price to cover " cost, freight, and insurance " («). Hare (1858), 27 L. J. Ex., at p. 377 ; Stock v. Inglis (1884), 12 Q. B. D. 564, at p. 573 ; affirmed (1885), 10 App. Oas. 268. (e) Neill v. Whitworth (1865), 34 L. J. C. P. 155; affirmed (1886), L. R. 1 C. P. 684, Ex. Ch. (/) Play ford v. Mercer (1870), 22 L. T. (N.S.) 41. (g) Ireland v. Livingston (1872), L. B. 5 H. L., at p. 406 ; c/. Youill v. Scott Rohson, [1908] 1 K. B. 270 (seller to insure against " all risks "). Qi) Steamship " County of Lancaster " v. Sharp (1889), 24 Q. B. D. 158. (i) AcmS Wood Co. v. Sutherland, Irmes FITNESS FOR PARTICULAR PURPOSE, implied condition, 42, 122 FIXTURES, how far treated as gooda, 126, 137 FRANCE (LAW OP). He« Code Napoleon. FRAUD, what con«titute8, 141 Having for law aft to, 1.31 doctrine of " legal fraud " exploded, 141 effect of fraudulent representation, 35, 128 seller knowinf; he has no title, 38, 69 Hale under voidable title, 69 r<)-ve«ting, on conviction, for larceny, 70 in auction saleg, 129 parole evidence to pr/jve, 18 fraud by third party, 10 FRAUDS (STATUTE OF), repealofs. 17..20, 145 provinionH substituted for, 18, 20, 21 general effect (s, 17), 20 amended by Lord Tenterden'a Act, 21 the Acts set out, 20, 21 compared with «. 4 of Sale of Goods Act, 20, 2 J contracts for more than a year, 20 " contract of sale," 21 " goods, wares, and merchandise," 21, 137 price or value, 20, 21 several articles making up £10 . . 22 " allowed to be good," 21 acceptance, 18, 21, 22 actual receipt, 18, 22 part of goods, 18, 22 earnest, 23 part pjiyment, 18, 19, 23 note or memorandum, 18, 23 signature, 23 agents to sign, 21, 24 parties to be charged, 21 auctioneers, 24 brokers, their notes and contracts, 24 rescission or variation of contract, 25 agreements relating to land, &o. (s. 4), 137, 138 effect of writs of execution (s. 16), 74 [ 13 J INDEX. FRAUDS (STATUTE 0¥)— continued. must be pleaded, 20 part of, lex fori, 20 does not apply to Scotland, 19, 20 FREE ON. BOARD, 86 FREIGHT, effect of Ken for, 163 " cost, insurance and freight," 86 FUTURE GOODS, definition of, 25, 136 contract for sale of, 25-27 when property in, passes, 56, 57, 59 GENERIC GOODS, 51, 56, 59, 140 GERMAN CODE, Introd., p. x. GIFT, 7 GOOD FAITH, meaning of, 141 -J GOODS, defined by the Act, 136 how far equivalent to " goods, wares, and merchandise," 137 specific and generic goods, 51, 59, 140 existing and future, or after-acquired goods, 25-27, 136 re-sale of perishable, 109 destruction of, before sale, 28, 29, 87 documents of title to, 135. See Documents of Title. pledge of document deemed pledge of goods, 153 delivery of wrong quantity or mixed, 81 exchange of, 7, 154 See also Factors Act. GROWING CROPS OR TIMBER, 137 GUARANTEE FOR PRICE, 25, 169 HIRE-PURCHASE AGREEMENTS, 157 HORSES, Act relating to sale of, 68 representations as to, 35 warranties judicially construed, 188 HOURS FOR DELIVERY, 79, 81 HYPOTHEC, saving for law of, in Scotland, 132 [ 14 ] INDEX. HYPOTHECATION (LETTER OF), distinguished from pledge, 7 outside Bills of Sale Act, 167 ILLEGALITY, saving for rules as to, 131, 132 supervening after contract, 29 IMPLIED TERMS, how negatived, 126, 127 as to title, 38 as to quality and fitness, 42, 47 on sale by sample, 48 implication of reasonable conditions, 80 See also Usage. IMPOSSIBILITY, an excusing performance of contract, 28, 29, 37 rule for test of, 181, 182 INDEPENDENT AGREEMENTS, 82-84, 177 See also Waeranty. INDIA, law of sale in, 144 INDUSTRIAL GROWING CROPS, 137 INFANT, liability for necessaries, 12, 14, 16 liability of father or mother, 15 INNKEEPER, power to seU goods left with, 65 n. INSOLVENCY, what constitutes, 142 seller's Ken when buyer insolvent, 94, 97 right of stoppage in transitu, 94, 100 re-sale when buyer insolvent, 106-110 saving for bankruptcy laws, 131 INSPECTION (RIGHT OF), 89. See Examination. INSTALMENTS, breach of contract for delivery by, 83, 98 buyer generally need not accept, 82, 83 measure of damages, 116 seller's Hen, 98 INSURANCE, seller's duty as to, 85-88 [ 15 J INDEX. INTENTION TO PASS PROPERTY is effectual when clear, 52, 143 rules for ascertaining, 64 INTEREST, when recoverable as damages, 113 saving for rules as to. 111, 123 rule in Scotland, 111, 113 INTERPRETATION ACT, 1889.. 143 JOINT OWNERS. See Co-ownehs. JUDGMENT, effect of satisfied, 9 JUS, in ^personam, 2, 8 ad rem, 54, 58 in rem, 2, 8 JUS DISPONENDI. reservation of, 60, 100 KEY, delivery of goods by giving, 79, 134 KNOCK OUT, at auction sale, 130 LAND, sale of things attached to, 137, 138 LARCENY ACT, 1916, re- vesting of goods in true owner, on conviction, 68, 70, 71 material provisions set out, 172 LAW MERCHANT, 131. See IJsage. LEGAL TENDER, 112 LICENCE TO SEIZE, taking under, is a delivery, 26, 135 as bill of sale, 166 LIEN, arises by implication of law, 94, 127 distinguished from property in goods, 139 of consignee under Factors Act, 155 of unpaid seller, 94. See Seller's Lien. of carrier, 105 .LIS PENDENS, does not affect goods, 74 [ 16 ] INDEX. LOSS OF GOODS, on whom risk falls, 62-64. See Risk. no title by finding, 66. See also Stolen Goods. c.i.f. contract, 87 goods perishing before sale, 27-29 LUNATIC, 13 MAKER OR MANUFACTURER. See Manufactured Article. MANUFACTURED ARTICLE, , impKed warranty of fitness for purpose, 42 warranty of merchantable quality, 43 warranty that it is seller's own make, 45 warranty as to trade-mark, 45, 167 when property in, passes to buyer, 55, 57 risk when delivery at distant place, 88 See also Future Goods. MARKET OVERT, rules as to sales in, 67 recovery of goods sold in, when thief convicted, 68, 70 MARKET PRICE, distinguished from reasonable price, 30 n. measure of damage for non-acceptance, 114 measure of damage for non-delivery,"' 115 MARRIED WOMAN, power to contract, 14 authority to bind husband, 15 liability for child; 15 sale to husband, 3 divorced woman; 15 MASTER OF SHIP, power to bind owner for necessaries, 15 special power of sale by, 65 n. duty as to stoppage in transitu, 105 when agent of buyer, 103 See Carrier. MAXIMS, AUerius circumventio alio nonprsebet actionem, 129 n. Caveat em/ptor, 42, 45 every reasonable condition is implied, 80 Expressum, facit cessare taciturn, 126 Falsa demonstratio non nocet, 41 Fraus omnia vitiat, 35 C.S.G. f 17 ] P INDEX. MAXIMS— conW«M«rf. Genua rmnquam pent, 27 Locus regit actum, 12 Modus et conventio vincuni legem, 126 Nemo dat quod non habet, 66, 146 Possession vaut titre, 66, 146 Bes jperit domino, 62 Si ces pro aura veneat, non valet, 41 Simplex commendatio non obligat, 35 Solutio pretii emptionis loco hahetur, 9 n. Verba fortius accipiuntur contra proferentem, 127 MEASURE OP DAMAGES. See Damages. MEASUREMENT, ■when property does not pass before, 55 MEMORANDUM IN WRITING, Tinder Statute of Erauds (s. 4), 19, 23 effect on verbal warranty, 34, 35 parol evidenoe to explain, &o., 18, 25 MERCANTILE AGENT, defined by Factors Act, 73, 147 effect of dispositions by, 72, 73, 150 acting in two capacities, 148 agreements with clerk of, 155 MERCHANDISE MARKS ACT, ' warranty implied by, 167 MERCHANTABLENESS, implied condition, 43-47, 121 MINOR, liability for necessaries, 12, 14, 16 liability of parent, 15 MISREPRESENTATIONS, 35, 131, 141 MISTAKE, delivery by, 135 contract induced by, 18, 131 MITIGATION or DAMAGES, 124 MIXED GOODS, transfer of property not affected, 52 goods mixed with others not ordered, 81 MONEY, not included in " goods," 136, 137. See Price. MONTH, means calendai- month, 33 [ 18 1 INDEX. "MORE OR LESS," 82,186 MORTGAGE, defined, 7 Act does not extend to, 132 distingnislied from sale, 7 distingaislied from pledge, 8 NECESSARIES, meaning' of term, 12, 16 supply of, to infant, 12, 14 supply of, to other incapable persons, 12, 13, 14 supply of, to married woman, 14, 15 supply of, to sMp, 15 parent and child, 15 NEGOTIABLE INSTRUMENT. See BrLL of Exchajjge; Bill of Lading. NON-ACCEPTANCE, NON-DELIVERT. See Action ; Damages. NOTE IN WRITING, under Statute'of Frauds, 18, 19, 23. See Memoeandtjm. NOTICE, of stoppage in transitu, 105 meaning of, in Factors Act, 152 of intention to re-sell, 110 OWNER (TRUE), sale ipthout consent of, 64 recovery of stolen goods by, 70 saving of rights under Factors Act, 159 sale by estoppel, 10 OWNERSHIP, transferred by sale, 2, 8, 8 distinguished from special property, 138 effect g^ven to apparent, by Factors Act, 64 See PaoPEBTT. PARENT AND CaiLD, 15 PART ACCEPTANCE, when wrong quantity delivered, 81 when right quantity tendered, 82 to satisfy Statute of Frauds, 18, 22, 23 PART DELIVERY, instalment contracts, 82 tender of wrong quantity, 81 effect on seller's lien, 98 effect on stoppage in transitu, 104 [ 19 ] INDEX. PAET DESTEUCTION, 28 PART OWNER,!, 3. See Co-owee. PAET PAYMENT, does not divest lien or right of stoppage, 97 to satisfy Statute of Frauds, 19, 23 "PAETIES TO BE CHAEGED," 19, 21 PATENT DEFECT, 44, 46 PATENT OE TEADE NAME, 42 PAWN. See Pledge. PAYMENT, duty of buyer, 76, 77, 111 usually concurrent condition with delivery, 77 action for non-payment, 111-113 refusal to accept and pay, 114 by negotiable instrument, 112, 165 stipulations as to time of, 33 instalment contracts, 83 part payment under Statute of Frauds, 19, 23 effect of deposit, 31 tender of, 112 evidence to prove, 113 See also Price. PEEFOEMANCB OP THE CONTEACT, duties of seller and buyer, 76, 112 payment and delivery as concurrent conditions, 77 rules as to- delivery, 78 delivery of wrong quantity or mixed goods, 81 instalment contracts, 82 delivery to carrier, 84, 103 risk of goods delivered at distant place, 88 buyer's right of examining the goods, 89 acceptance by buyer, 90 mode of rejecting goods, 91 default of buyer in taking delivery, 91 specific, may be decreed, 120 substituted performance, 25 effect of impossibility, 29 PEEISHABLE GOODS, re-sale on buyer's default, 109 PEESONAL CHATTELS, 136 PLACE OP DELIVEEY, 78, 80 PLACE OF PAYMENT, 112 [ 20 ] INDEX. PLAINTIFF, defined, 138 PLEDGE, common law definition,; 7, 8 \ Act does not apply to, 132 distingTiisted from sale, mortgage and lien, 7, 8, 139 definition under Factors Act, 150 effect of pledge of documents, 150, 153 for antecedent debt, 153 powers of mercantile agent, 150 by seller in possession of goods or documents of title, 72, 156 by buyer in possession of goods or documents of title, 72, 166 of biU of lading, 107, 108 unpaid seller's lien compared with, 94, 95 effect on stoppage in transitu, 107, 108, 158 PLEDGEE, of biU of lading not liable for freight, 163 POSSESSION, actual or constructive, 134 See Deliveby. possession vaut titre, 66, 146 defined by Factors Act, 148 POTHIER, as an authority in England, Introd., p. x. PRICE, defined, 1, 30 rules for ascertaining, 30, 31 reasonable price, 30, 81 alternative in nature of wager, 30 agreement for valuation by third party, 32 £10 and upwards, 18-22 statement of, in note or memorandum, 23 deposit, 31 tender of, 112 action for, by seller, 111 rights of seller if whoUy or in part unpaid, 94 rights of sub-purchaser on paying, 98, 110 reserve or upset at auction sale, 129 list of stipulations judicially construed, 185 effect of alteration of customs or excise duties, 32, 170 And see Payment ; Seliek's Lien ; Stoppage in Tsansittj. PRINCIPAL AND AGENT. See Agency. PROPERTY, defined, 138 distinguished from right to possession, 139 [ 21 ] INDEX. VROFEWiY— continued. sale is a transfer of, 1, 2, 8 when it passes to buyer, 51, 64. See Tkansfek. •n^prim&fade goes with, 62 property by estoppel, 10 PUFFER, at auction sales, 129, 130 QUALITY, includes condition of goods, 139 caveat emptor, and its exceptions, 35, 42 damages for breach of warranty of, 121 sales by sample, 48 express warranties, 34, 43 list of stipulations judicially construed, 187 QUANTITY, delivery of wrong quantity, 81 list of expressions judicially construed, 186 QUASI-CONTRACTS OF SALE, 9-11, 13 READINESS, to pay or deliver, how proved, 78 READY MONEY, presumption that sale is for, 77, 78 REASONABLE, hours, 79, 81 time, 128 price, 30, 31 RECEIPT, " actual receipt " in Statute of Frauds, 18, 22 for money paid, 168, 170 REJECTION, right of, for breach of condition, 36 mode of rejecting goods, 91 when allowed for breach of warranty, 36, 121 saving for right in Scotland, 36 iSee Retubn. REPEALS, by Sale of Goods Act, 131, 145 by Factors Act, 160 REPRESENTATIONS, different kinds and their effect, 35, 141 See also False Pretences ; Fbaud ; WAUUANiy, [ 22 J INDEX. REPUDIATION OF CONTRACT, 36, 81, 82, 92 BES PEBIT DOMINO, 62 RE-SALE, by seUer, 72, 94, 109 by buyer, 72, 106 effect of sub-sale on damages, 124 RESCISSION OP CONTRACT, by mutual consent, 24, 38 by consent when buyer insolvent, 98 if there be a resolutive condition, 7, 49, 110 on exercise of lien or right of stoppage, 109 non-performance of instalment-contract, 82, 83 in case of fraud, 35, 130, 141 RESOLUTIVE CONDITIONS, 7, 49, 58, 109 RETENTION (RIGHT OF), corresponds with Hen in England, 138 former Scotch rule, 95 RETURN or GOODS, not necessary on rejection, 91 goods on approval or' sale or return, 55, 58, 188 claim for breach of warranty without, 123 RISK, general incidence of, 62-64 goods delivered to carrier, 84, 189 delivery at distant place, 88 destruction of goods before sale complete, 27-29 duty as to insurance, 85-88 c.i.f. contracts, 87 f.o.b. contracts, 86 ROMAN LAW, weight of, in England, Introd., p. xi., and numerous citations. SALE, defined, 1, 2 general nature of, 3 relation to other contracts, 4-6 absolute or conditional, 1, 6 distinguished from agreement to sell, 2, 8 includes bargain and sale, and sale and delivery, 2, 9, 139 where agreement to sell becomes, 2, 8 destruction of goods before, 27-29 included in " contract of sale," 1, 2, 133 distinguished from exchange, 5 exemption from stamp duty, 169 C 23 J INDEX. SALE — continued. subject-matter of, 25 by sample, 48 by auction, 129 ^ on trial or approval, 55, 58, 188 ofhorses, 68, 188 See also Conteaot op Sale. SALE OF GOODS ACT, History of Act. See Introd., p. vii. Short title, 143 Commencement, 142 savings, 131 definitions, 133-142 repeals, 131, 135 canon for construction of, 143 general operation of, 143 adoption in colonies, 144 SALE OR RETURN, rules as to, 55, 58 stipidations as to, judicially construed, 188 SAMPLE, nature and function of, 49 rules as to sale by, 48-50 goods must accord with description, 40, 50 bulk sample to satisfy Statute of Frauds, 22 wrong sample shown by mistake, 18 SAVINGS, under Sale of Goods Act, 131 under Factors Act, 159, 160 SCOTCH LAW, differs from English, Introd., p. ix. property did not pass tUl delivery, 54 warranty of title, &c., 39 no warranty that goods are of seller's own make, 45 warranty of quality, 47 conditions and warranties, generally, 36, 122, 140 right of rejection, 36, 122, 131 consignation or payment into court, 131 no rule of market overt, 68 arrestment or poinding, 96 seller's right of retention, 94, 95, 138 stoppage in transitu, 95, 96 recovery of interest on price. 111, 113 specific implement, 120 damages for non-delivery, 117 [ 24 ] INDEX, SCOTCH 1,A-W— continued. Statute of Frauds does not apply, 19, 20 application of Factors Act, 162 applications of definitions, 133-142 SEA TRANSIT, 85-88 See also Shipment. SEAL, when required, 17, 18 stamp when contract under, 169 n. SEXjXiESi, defined, 140 same person as buyer, 3 duty to deliver, 76-90. See Dbliverv. liability of, if he refuses to take back rejected ^oods, 91 when deemed to be unpaid, 93 rights of, when unpaid, against the goods, 94 re-sale by, when buyer in default, 109, 110 left in posse'Ssion of goods or documents, 72, 156 remedies by action, 111-115, 123 actions against, 115-124. See Action. may be bailee for buyer, 100, 102, 134 warranties by, 33, 36, 42, 49. See Waeeanty. duty as to dangerous goods, 44, 47, 123 See also Auction ; Price. SELLER'S LIEN, who is an unpaid seller, 93 origin and nature of Hen, 94, 95 distinguished from stoppagie in transitu, 95 when it arises, 96 how if contract is executory, 100 effect of part delivery on, 98 how terminated, 99 effect of sub-sale by buyer, 106 does not usually rescind the contract, 109 right of retention, Scotland, 95, 138 SEVERABLE CONTRACT. See Divisible Conteact. SHARES, are things in action, 137 SHERIFF, power of sale by, 65 n. effect of delivery of writ to, on subsequent sale, 74 does not warrant title, 38 [ 25 ] INDEX. SHIP, transferred by bill of sale, 17 n. paid for by instalments as built, 53 outside Bills of Sale Acts, 167 how far included in " goods," 138 powers of master, 15, 65 n. SHIPMENT, as appropriation of goods to contract, 56, 60 duty of seller on making, 85-88 when right of stoppage ended by, 102-104 list of stipulations judicially construed, 182 bill of ladiag as evidence of, 163, 164 SPECIAL DAMAGES, saving for, and note on, 123 See Damages. SPECIFIC GOODS, definition discussed, 140 perishing before sale complete, 27-29 property in, may pass by contract, without delivery, 62 rules to determine when property passes, 52, 54, 57 caveat emptor usually applies to sale of, 42, 45 contrasted with generic goods, 51, 57, 140 unascertained part of specific whole, 52 SPECIFIC PERFOEMANCE, 120 SPIRITS, sold by retail, 113 STAMP DUTY. exemption of contracts of sale, 169 bills of lading, 168, 169 abolition -of stamp on delivery orders, 171 warrants for goods, 169, 170 receipts for money, 168 hire-purchase agreements, 169 n. STATUTE OF FRAUDS, 18-25. See Frauds. STATUTES, IN APPENDIX, 163-173 STOLEN GOODS, property usually remains in owner, 64 sale of, in market overt, 67 re-vesting of property on conviction of thief, 68, 70, 172 larceny and false pretences distinguished, 71 [ 26 ] INDEX. STOPPAGE IN TRANSITU, originofriglit, 94, 95 distingnished from seller's Uen, 95 nature of transit, 100 duration of transit, 102 tow stoppage effected, 105 stoppage wtere contract is executory, 101 contract not usually rescinded by, 109 SUB-SALE, effect of, by buyer, 106, 124 SUNDAY, 133 SUSPENSIVE CONDITION, 6, 59, 176 TENDER, of delivery, 78, 83 of price, 112 TEEMS AND STIPULATIONS, list of, judicially construed, 182-189 THINGS IN ACTION, 136, 137 THROUGH BILL OE LADING, 164 TIME, construction of stipulations as to, 33 reasonable, a question of fact, 128 list of stipulations judicially construed, 184 TITLE, impKed undertakings as to, 38 transfer of, by sale, 64-72. See Tbansper ; Document of Title. TRADE-MARK, implied warranty as to, 45, 167 TRADING WITH ENEMY, 16, 29 TRANSFER, of bill of lading, 108. See Bill of Lading. of document of title, 107, 150. See Document op Title. (a), of property as between seller and buyer — goods must be ascertained, 51 property passes when intended to pass, 52, 190 conditional sale of specific goods, 6, 53 unconditional sale of specific deliverable goods, 54 goods not in deliverable state, 55 when price to be ascertained by seller's act, 55, 58 goods on approval or sale or return, 55, 58, 188 appropriation of goods to contract, 56, 59 [ 27 ] INDEX. TRANSFER— cowiinMcd. delivery to carrier, 60, 84, 189 article specially made for buyer, 57, 58 assignment of future goods, 25, 59 reservation of right of disposal, 60 risk usually passes with property, 62 See also Assignment ; Cakrier ; Delivery. (b) of title- sale by person not the owner, 64 provisions of Factors Act, 64, 146. See Factors Act. spfecial common law or statutory powers, 65 market overt, 67 sale under voidable title, 69 revesting of stolen goods on conviction, 70, 172 seller or buyer remaining in possession, 72, 156 effect of writs of execution, 74 common law powers of mercantile agent, 160 sale by estoppel, 10. See also Quasi-Contract. TRANSIT, what constitutes, 102. See Stoppage in Transitu. TROVER, 9, 119. See Conversion. TRUSTEE (IN BANKRUPTCY), may afSrm contract, 97, 132 may disclaim contract, 132 may sell to bankrupt, 3 UNASCERTAINED GOODS, property passes by appropriation, 51, 56, 59 unascertained part of ascertained whole, 52 UNITED STATES, 144 UNPAID SELLER, who deemed to be, 93 remedies of, against the goods, 94 See Seller's Lien ; Stoppage in Transitu. UPSET PRICE, 129 USAGE OF TRADE, to explain or annex incidents, 18, 126, 127 to import warranty or condition, 43 contrasted with rules of law, 146 to prove that sale was by sample, 49 to reduce written condition to mere warranty, 42 saving for law merchant, 131 [ 28 ] INDEX. VALUATION, agreememt to sell goods at, 32 VALUE, of £10 and upwards under Statute of Frauds (sect. 4), 18-22 what constitutes, under Factors Act, 154, 162 as measure of damages, 114, 116-119 VARIATION OF CONTRACT, 24, 37 VENDOR'S LIEN, 94. See Seller's Lien. WAGER, when sale void as, 30 WAIVER, of condition precedent, or warranty, 37, 126 of seller's lien, 100 of right of stoppage in transitu, 104 of tort, 10 / WAR, V status of alien enemy, 17 effect on contract of sale, 29, 30 WARRANT FOR GOODS, 149, 170. See Document of Title. WARRANTY, defined, 34, 140 discussion of definition, 177 how implied, may be negatived, 126 how annexed to contract of sale, 34, 35 what affirmations operate as, 34, 141 when condition is to be treated as, 36, 121 implied warranty of title, and freedom from Uen, 38 on sale by description, 40 annexed by usage of trade, 43 of fitness for particular purpose, 42, 46, 47, 126 of merchantable quality and condition, 43, 46, 47, 126 as to goods being of seller's own make, 47 on sale by sample, 49 special warranties by statute, 42 n., 167, remedies for breach of warranty, 121, 122 measure of damages for breach, 121, 122 list of warranties judicially construed, 186 Scotch law as to, 36, 122, 140 payment into Court in Scotland when breach of, set up, 131 See Condition ; Repkesbntation. WEIGHING GOODS, when condition precedent to property passing, 55, 58 [ 29 ] INDEX. "WITH ALL FAULTS," 187 "WITHOUT RESERVE," 129 WORDS AND PHRASES, rules of construction, 181 list of, judicially construed, 182-189 WORK AND MATERIALS, distinguislied from sale, 4 THE END. PRINTBD BT WILLIAM OLOWBa ANP SONS, LIMITED, LONDON AND BKOOLES.