Notes on the Conditions as to Time of Delivery, Price and Place

Thus, as to the nature and quality of goods sold a sale may be by sample; Ml on type (also standard); by description; on approval; Ml or on evidence.

By the usage of trade, a warranty of quality is im­plied. When the sale is by sample, the vendor’s warranty is considered as given that the goods sold shall correspond with the sample.

A buyer has the right of refusing acceptance, in the case of any essen­tial difference between the sample and the bulk. The difference between a sample and type is: the former is meant to be an actual portion of the parcel sold, to serve as evidence of the quality of the bulk, while the latter is simply a specimen exemplifying the essential characteristics of a certain parcel.

Sales on type are usually effected for agricultural produce, the sale of which is often contracted before the crop is cut, when it would be next to impossible to offer an actual sample.

Some goods are bought and sold by description, as being known on the market through some particular trade mark or brand, the sole description of which is sufficient to distinguish the object of the sale without any necessity of either type or sample. Thus in a con­tract for the sale of 100 cases of Martell Cognac no sample is needed to specify the goods sold.

Goods on approval means that the buyer reserves the right of accepting or refusing the bargain.

Evidence means where goods are sold according to their external appearance at the moment of sale, or from shipping documents; the seller not being liable, therefore, either for their quality or condition.

Conditions as to Price.-

The price to be paid may cover the sole cost, when no special condition is required, or it may include certain charges attaching to the goods, which may therefore be sold under one of the following clauses:-cost, insurance, and freight (abbr. C.I.F.)-i.e., that the price is to cover the cost of the goods besides insurance and freight charges; cost and freight (abbr. C. & F.) i.e., price to cover cost of goods and freight charges only; duty paid or duty unpaid-i.e., price to include or not to include customs duties on the goods sold; free of charge-i.e., Price to include all charges on the goods; charges forward, which means that freight and other charges on the goods sold are to be paid on receipt of the
same: this form of sale being used especially for small parcels sent either by cart, rail, or ship.

Conditions as to Time of Delivery.-

The conditions of delivery concern the time and place at which the goods are to be delivered.

As to time, most sales are effected for prompt delivery. This mode of delivery is therefore con­sidered as agreed upon when no particular clause is inserted to the contrary effect in the document of sale.

If the sale be for the value of £ 10 or upwards, the buyer is bound in law to accept part of the goods sold to him, or pay something on account, unless he gives an order in writing. Goods may also be sold for delivery on term, that is, at a fixed date.

For forward delivery, which means goods to be delivered within a stated period, as, for instance, forward delivery No­vember – To arrive, viz.: on safe arrival of the vessel upon which the goods are sailing or are to be shipped; the vessel’s name being declared either on executing the contract or within a specified time.

Sales are also effected sometimes by prompt, a prompt being an agreement whereby one party engages to sell and another to buy certain goods to be delivered and paid for at a specified date, called the prompt day ; the buyer having, however, the option of claiming delivery before the appointed time, provided he pays for the goods on receipt.

A thirty days’ or sixty days’ prompt means, therefore, a contract for the sale of goods which the seller is to keep at the buyer’s disposal up to the thirtieth or sixtieth day after date, but which the latter is bound to remove and pay for on or before the prompt day. .

Conditions as to Place of Delivery. –

As regarding the place of delivery the conditions of sale may be: spot; in ware house ; in bond; at station ; in trucks, or on rail; ex-quay, in lighters; free alongside (abbr. F.A.S.)- i.e., along the ship side; under ship’s tackle; on deck; free on board (abbr. F.O.B.).

The meaning of some of these expressions is patent from the words used, but others deserve some explana­tion. For instance: spot that is at the place where the goods are at the moment when the sale is affected.

Spot sales are therefore technically called such as effected for goods actually existing on the market ready to be delivered. In bond, viz., within the pre­cincts of the Customs warehouse, where the goods are deposited as a warranty for customs duties due upon them. Under ship’s tackle, viz., heaved from the ship’s hold and hanging overboard on a tackle or other mechanical appliance.

The conditions of the contract of sale appointing the time and place of delivery are of the greatest importance, considering that at the time and place where the thing sold passes from the vendor’s to the buyer’s hands the former’s responsibility ceases, and any risk or damage the goods may run into after is at the risk of the latter.