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First Principles of Business Law |
| Property law |
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3. Property rights in chattels |
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3.3.5. Reservation of ownership by a seller of goods |
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Albert agrees to purchase a forklift from Bridget for $65,000. The terms of the sale are that Albert will pay $5000 up front, and the balance of the purchase price in instalments of $5000 over the next twelve months. It is agreed that, although the forklift will be delivered immediately to Albert, ownership will not pass from Bridget to Albert until the purchase price is paid in full. In these circumstances, which of the following statements is correct? |
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(a) It is possible for the parties to a sale of goods to agree that ownership will be reserved to the seller until payment is made, even if payment is due after delivery. (b) It is not possible for the parties to a sale of goods to agree that ownership will be reserved to the seller until payment is made if payment is due after delivery. |
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