220 Chapter 7The Sale of Goods Act 1979
n It is possible for a seller of goods to reserve ownership of the goods until the buyer
has paid the full price of the goods. If this is done, ownership remains with the seller
even though the buyer may take possession of the goods.Practice questions
1 Sid, who has owned and run a bicycle shop for many years, has decided to retire. Bryony
intends to open a bicycle shop shortly. Sid invites Bryony to his shop to see if she wants to
buy any of his stock. Bryony visits Sid’s shop on Monday and agrees to buy the following
things.(a) A Super Deluxe Velocipede Mark 2 bicycle, which Sid is repairing. Sid agrees that he will
finish the repairs within two days and that this bicycle will then be available for collection
by Bryony.
(b) All the paraffin stored in Sid’s tank, at a price of £1 a litre. It is not known how much
paraffin is in the tank and Sid is to measure the paraffin to discover the price which
Bryony must pay.
(c) Three of the six Velocipede Mark 1 bicycles which are stored in Sid’s basement.
(d) Sid’s computer, on which he keeps track of all his business dealings.
(e) A tricycle, which Bryony is to test ride. If Bryony likes the tricycle she will let Sid know and
she will then buy it. If she does not like the tricycle she will return it within two weeks.Bryony does not take any of the goods with her, except for the tricycle. On Monday night
Sid’s shop is burnt down by a stray firework and all of the contents of the shop are destroyed.
Advise Bryony, who has decided that she does not want to buy the tricycle, of her legal
position.2 On 1 March Bertha agrees to buy 100 bags of potatoes from Susan. The price is £200 and it
is agreed that Susan will deliver the potatoes in one month’s time, when she has herself
bought them from a farmer. Bertha pays £20 of the price in advance. She is given credit as
regards the rest of the price, which is to be paid on 1 September.(a) Where would the place of delivery of the potatoes be?
(b) What would the legal position be if Susan did not deliver the potatoes on time?
(c) What would the legal position be if Susan delivered 120 bags of potatoes, instead of
100 bags?
(d) What would the legal position be if Bertha made it plain that she was not going to take
delivery of the potatoes or pay for them?
(e) If delivery was to be made in ten instalments, what would Bertha’s position be if the
second instalment contained many rotten potatoes?
(f ) If no price had been fixed, would there be a contract? If so, how would the price be
fixed?
(g) What remedies would be available to Bertha if she took delivery of the potatoes and
stored them and, six months later, discovered that they had been rotten at the time of
delivery?