Tuesday, July 23, 2019
COMMERCIAL LAW Essay Example | Topics and Well Written Essays - 250 words
COMMERCIAL LAW - Essay Example According to sections 171 and 192 of the Sale of Goods Act, 1979, Daniel can claim the identifiable part because it is unsold and is not mixed with any other goods. In Clough Mill v Martin3, the seller had retained the title to the goods and when the buyer became insolvent before paying for the goods, the goods were identifiable. It was held that the seller had the title to the goods and he was also entitled to damages. Therefore, Duncan can claim this part of copper wires because he retains the title to them and this part does not form the assets of Craftit Ltd and would not be appropriated in settlement of its claims. Larry, the liquidator, would not be able to withhold possession of them. The part that has been wound into coils around cardboard spools is not identifiable because it now forms a part of a finished or a semi-finished good. DuncanÃ¢â¬â¢s title in respect of this part of copper wires is lost. In Borden (UK) Ltd v Scottish Timber Products Ltd4 and Re Peachdart Ltd5, the buyer had used the resin that he had bought as an ingredient in the manufacture of chipboard. He became insolvent before payment. It was held that the seller had lost the title to the resin as it was mixed with other goods. The wound copper wires cannot be returned to their original form. It may be argued that the parties to the contract had agreed on the terms that the title was to be retained by the seller even if the goods were processed. This term poses a problem in reality. If the supplier of cardboard spools also had supplied them on the retention of title clause, it would be quite a conundrum. Therefore, the courts might apply Re: Bond Worth Ltd6 hence allowing property in the good s to pass to Craftit Ltd and resulting in a charge being granted back to Duncan. However, the courts would first make certain whether such a charge is allowed to exist.