Sales 4th Week - LEGABEX
Perfection of Sale • When is a sale perfected? – at the moment there is a meeting of the minds upon the thing which is the object of the contract, and upon the price. • What is the effect of a perfected sale? – the parties may reciprocally demand performance i.e. one party delivers the goods, and the other pays the price therefor.
Transfer of Ownership • How is it effected? – by actual or constructive delivery • Exceptions: – Sale or return – Sale on approval – by agreement
Kinds of Delivery • Real or actual delivery • Constructive delivery – delivery by public instrument – symbolic delivery * tradition longa manu * tradition brevi manu * tradition constitutum possessorium – delivery to a common carrier
Rules relative to delivery to a Common Carrier • General rule – ownership transferred at the point of shipment • Exceptions: – reservations on the bill of lading – object is specific goods which are in a deliverable state – at the time contract is entered into – object needs to be prepared for deliverable state – at the time preparation for deliverable state is finished – dependent on who pays the freight
Freight Charges • F.O.B. – free on board – seller bears the expenses of transportation up to the fob point – ownership is transferred only at that point • C.i.f. – cost, insurance and freight – price quoted includes these costs – buyer owns the goods • F.a.s. – free alongside – seller owns the goods