Commercial Law – Delivery and Payment

0 Reviews
  • UniversityDurham University
  • AreaLaw
  • CourseCommercial Law
  • Course CodeLLB
  • ProfessorRachel Avery
0 Purchases
A Grade
  • Authorlc313
  • Created2017
  • Pages4
  • Approved31 March 2017

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About these notes

Cases and Legislation on delivery and payment in commercial law. Includes case facts, the decision and comment on the case/legislation. Used to achieved a great grade in commercial law


Delivery and Payment

Duties of Seller

S27 SGA 1979
What it says Duty for seller to deliver goods

Duty for buyer to pay price for goods

In accordance with terms of contract

Notes in accordance with terms of contract = vague – depends v much on contract, therefore important to look at all terms


S61(1) SGA 1979
What it says · Delivery – voluntary transfer of possession from one to another

· NO general rule requiring S to dispatch goods – B must collect them

· Place of delivery = S’s place of business/residence. If specific goods, in specific place, at time of conclusion of contract – that place = place of delivery

Notes · NOT physical delivery – as long as go through legal mechanisms

· NO general rule requiring S to dispatch goods – B must collect them (unless expressly/impliedly agreed) – this is very bizarre

· Place of delivery – problem = mail order etc. (s29(2) exceptions)


Albright & Wilson v Biachem
Ratio Symbolic delivery – if delivery driver hands over delivery note – that is sufficient as delivery


S29(4) SGA 1979
What it says · When, at the time of the sale the goods are in the hands of a 3rd party, there is no delivery until 3rd party says they now hold goods on behalf of B (not S) – at this point, B is on risk – anything that happens after communication = at expense of B


S28 SGA 1979
What it says · Concurrent obligations – delivery and payment given in exchange for each other rather than terms of property (they’re done at the same time)

· ‘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.


Notes · Problem = in theory, it’s the property of the goods that B bargains for – not possession. Therefore B can withhold payment if he doesn’t get possession, and S can withhold delivery unless he gets payment – therefore practical problem – think slip up of SGA

· IMPORTANT – Rachel hinted could come up as essay Q


Fercometal SARL v Mediterranean Shipping
Facts · Ship – good in sale (to be used for future deliveries)
Ratio · If party tried to repudiate contractual obligations before performance – innocent party is left with choice – they can affirm (reject) this, or accept early repudiation and try to litigate loss
Notes · Problem = if S can’t show that repudiation accepted, he will have to face accusation that he did not have capacity to perform contract at that time

· Should Parl have changed it so that S was freed from his duty to deliver by estoppel, not termination of contract


S10 SGA 1979
What it says · May be condition or warranty (10(1))

· May be made of essence of the contract depending on parties intention (10(1))

· Cf – time of payment – not of essence – depends on intention (10(2))

Notes · If condition –get full repudiation

· If warranty – only damages



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