First Principles of Business Law

3. Property rights in chattels

3.4.4. Ownership of mixtures of things

Albert already owns a considerable quantity of different kinds of timber, but from time to time he orders more from various suppliers. When delivering timber ordered to Albert, some suppliers reserve rights of ownership until payment is made. Albert does not keep such timber separate from his own supplies: he mixes them together. In these circumstances, is the supplier's reservation of ownership effective?  Which of the following statements is not correct?

(a) When things belonging to different owners are mixed together, ownership of the constituent parts of the mixture does not change as long as the different parts can be identified and separated.

(b) When things belonging to different owners are mixed together, and the different parts cannot be identified and separated, the former owners become co-owners of the mixture in proportion to their contribution.

(c) When things belonging to different owners are mixed together, and the different parts cannot be identified and separated, the mixture is owned by whoever is in possession of it.