Weiner v Gill
Where goods are delivered on sale or return on terms that property is not to pass until they are paid for, property does not pass when the buyer pledges them.
Facts
Mr Weiner, a jeweller, delivered jewellery to Mr Huhn on sale or return, on terms that the goods remained his property until they were settled for or charged. Mr Huhn gave the jewellery to a third party, who pledged it with Mr Gill, a pawnbroker, and absconded with the money. Mr Weiner sued Mr Gill to recover the jewellery. Mr Gill argued that property had passed to Mr Huhn when he dealt with the goods, as an act adopting the transaction.
Legal principle
The Court of Appeal held that Mr Weiner was entitled to the jewellery. Under section 18, rule 4 of the Sale of Goods Act 1893, property in goods delivered on sale or return passes to the buyer when he signifies his approval or does an act adopting the transaction, unless a different intention appears. Here, the terms of the delivery showed a different intention, that property would not pass until the goods were paid for, so rule 4 did not apply. Property had not passed to Mr Huhn, and Mr Gill had no title to the jewellery.
Related cases on passing of property and risk
- Carlos Federspiel & Co SA v Charles Twigg & Co Ltd [1957] 1 Lloyd's Rep 240
- Demby Hamilton & Co Ltd v Barden [1949] 1 All ER 435
- Dennant v Skinner and Collom [1948] 2 KB 164
- Re Goldcorp Exchange Ltd [1995] 1 AC 74
- Healy v Howlett & Sons [1917] 1 KB 337
- Karlshamns Oljefabriker v Eastport Navigation Corp (The Elafonissos) [1982] 1 All ER 208
- Kirkham v Attenborough [1897] 1 QB 201
- Kursell v Timber Operators and Contractors Ltd [1927] 1 KB 298
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