Victorian Consolidated Legislation

Goods Act 1958 - SECT 25A

Contract of sale for goods forming part of bulk quantity

25A. Contract of sale for goods forming part of bulk quantity



(1) This section applies to a contract of sale for a specified quantity of
unascertained goods of which some or all form part of a single bulk quantity
of goods of the same kind (the bulk) if-

   (a)  the bulk 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 agree otherwise, as soon as both of the conditions
referred to in subsection (1) have been met-

   (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.

(3) The buyer's undivided share in the bulk at any time is such share as, 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 their aggregate is equal to the bulk.



(5) If a buyer has paid for some only 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 is taken to be payment for a corresponding part
of the goods.

(7) A person who becomes an owner in common of the bulk is taken to consent
to-

   (a)  any delivery of goods out of the bulk to any other owner in common of
        the bulk, being goods that are due to that other owner under a
        contract to which this section applies; and

   (b)  any dealing with, or removal, delivery or disposal of, goods in the
        bulk by any other 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 any person by reason of that person having
acted in accordance with subsection (7)(a) or (7)(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 any contract or other arrangement between buyers of goods out
        of the bulk for adjustments between themselves; or

   (c)  affects the rights of any 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 section 28 of the Fundraising Appeals and Consumer Acts
Amendment Act 2009.

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