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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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If A Buyer Pays Against an Invoice But Does Not Collect

Resolved Question:

If A Buyer Pays For Goods Against an Invoice But Does Not Collect for a Period Of Time (less Than 6 Months) Has he Good Title and Can The Seller (a Merchant) Sell Or Dispose Of The Without Notification?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Normally title to the goods will pass on delivery. Delivery can mean a number of things, it can mean simply when the buyer has paid for the goods and seller has made them available for collection or has physically transferred them to the buyer. Ultimately if you have paid for something that you do not then receive because the seller has disposed of it without notice, you could sue the seller to recover the monies paid. Unfortunately you would be unlikely to trace the goods and get them back from the third party that bought them, unless you could prove the third party knew the goods belonged to you. Did you sign any terms and conditions with the seller? Kind regards AJ

Customer: replied 1 year ago.
Thanks, ***** ***** more complex than that, my other half works for a major international jewellery company, they have sold a piece to a client who has paid in full against a invoice which details the goods. He has not collected and they argue as he has not they could dispose of them elsewhere (I assume they would them refund him or give him the option of an alternative but its not clear). No terms were, as far as I am aware, given nor advised (for example see this web site). She believes that they cannot do it and I thought she is right. I would have expected they could charge storage but to dispose of elsewhere would be a breach of contract and give him the right to sue. Also could good title pass to the 3rd party (new customer)? (PS: am not legally trained but work in shipping and really just curious about this)
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. Good title can pass to a third party, as long as the third party is a "an arms length purchaser and a bona fide purchaser paying a proper value". Essentially the third party can acquire good title as long as they were not reasonable aware that the jeweler did not have good title to sell the goods. In relation to the sale itself, the only way that the Jeweler could have retained title is if they specifically said that title does not pass until delivery and delivery is based on physical possession. Based on what you have stated and assuming there are no other terms and conditions to the contrary, the jeweler should not have sold goods that the buyer already paid for in full. Kind regards AJ

Customer: replied 1 year ago.
perfect, all clear and thanks
Expert:  Alex J. replied 1 year ago.

Thank you. ***** can assist any further please let me know. In the mean time I would be most grateful if you would rate my answer? Kind regards AJ

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