Victorian Consolidated Legislation

Goods Act 1958 - SECT 24

Reservation of right of disposal

24. Reservation of right of disposal



(1) Where there is a contract for the sale of specific goods or where 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. In such 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.

(2) Where goods are shipped and by the bill of lading the goods are
deliverable to the order of the seller or his agent the seller is prima facie
deemed to reserve the right of disposal.

(3) Where 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 he does not honour the bill of exchange, and if he
wrongfully retains the bill of lading the property in the goods does not pass
to him.