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STATUTES AMENDMENT (BULK GOODS) ACT 2008 (NO 49 OF 2008) - SECT 6

6—Insertion of section 20A

After section 20 insert:

20A—Contracts of sale for goods forming part of bulk

        (1)         This section applies to a contract of sale for a specified quantity of unascertained goods if—

            (a)         the goods, or some of them, form part of a bulk that is identified either in the contract or by subsequent agreement between the parties; and

            (b)         the buyer has paid for some or all of the goods that form part of the bulk.

        (2)         Unless the parties otherwise agree—

            (a)         property in an undivided share in the bulk is transferred to the buyer; and

            (b)         the buyer becomes an owner in common of the bulk,

as soon as both of the conditions referred to in subsection (1) have been met.

        (3)         Unless the parties otherwise agree, the buyer's undivided share in the bulk at any time is the share that, at that time, is equivalent to the quantity of goods paid for and due to the buyer out of the bulk divided by the quantity of goods in the bulk.

        (4)         If at any time the aggregate of all buyers' undivided shares in the bulk exceeds the whole of the bulk, those shares are to be reduced proportionately so that the aggregate is equal to the bulk.

        (5)         If a buyer has paid for only some of the goods due to the buyer out of the bulk, any delivery to the buyer out of the bulk is to be attributed to the goods for which payment has been made.

        (6)         Part payment for any goods will be taken to be payment for a corresponding part of the goods.

        (7)         A person who has become an owner in common of the bulk will be taken to have consented to—

            (a)         delivery of goods out of the bulk to another owner in common of the bulk, being goods that are due under a contract to that other owner; and

            (b)         any dealing with, or removal, delivery or disposal of, goods in the bulk by another owner in common of the bulk (but only to the extent of that other owner's undivided share in the bulk).

        (8)         No cause of action lies against a person by reason of that person's having acted in accordance with subsection (7)(a) or (b) in reliance on the consent that exists by virtue of that subsection.

        (9)         Nothing in this section—

            (a)         imposes an obligation on a buyer of goods out of the bulk to compensate any other buyer of goods out of the bulk for any shortfall in the quantity of goods received by that other buyer; or

            (b)         affects a contract or other arrangement between buyers of goods out of the bulk for adjustments between themselves; or

            (c)         affects the rights of a buyer under a contract to which this section applies.

        (10)         This section does not apply to a contract of sale entered into before the commencement of the Statutes Amendment (Bulk Goods) Act 2008 .



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