Australian Capital Territory Current Acts

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Reservation of right of disposal

    (1)     If there is a contract for the sale of specific goods, or if goods are subsequently appropriated to the contract, the seller may, by the terms of the contract or appropriation, reserve the right of the disposal of the goods until certain conditions are fulfilled.

    (2)     In such a case, notwithstanding the delivery of the goods to the buyer, or to a carrier or other bailee, 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.

    (3)     If goods are shipped and, by the bill of lading, the goods are deliverable to the order of the seller or the seller's agent, the seller is prima facie deemed to reserve the right of disposal.

    (4)     If 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 the buyer does not honour the bill of exchange and, if the buyer wrongfully retains the bill of lading, the property in the goods does not pass to the buyer.

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