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Commercial Law question - transfer of property and risk

I am dealing with a question regarding the captioned topic, the question is as follows:-

Mary is a retailer and she goes to a dairy wholesaler, ABC shop, to purchase milk. She places the following order and the same has been paid for:

(a) she orders 100 litres of milk. The cashier tells her that all of the fresh milk is stored in a large 1000 litre storage tank in the dairy warehouse. It is agreed that Mary will accquire 100 litres from the 1000 litres in the tank.

The following day, Mary received a phone call from the manager at ABC shop who told her:

(a) when they had extracted 100 litres of the milk from the storage tank, they discovered that it had gone off and was not safe to drink.

Advise Mary.

I am of the view that since the shop could supply any 100 of 1000 litres milk in the tank to satisfy the contract, therefore these are unascertained goods under s.16 SGA forming part of an ascertained bulk, Re Wait. Initially Mary has a 10% undivided share as ownership in common of the bulk in accordance with s.20A becase the bulk is specified and she has paid for the goods. There is nothing left to be done to the goods to put them into a deliverable state and it is an unconditional contract. Property in the share therefore passes to her in respect of the 100 litres of milk.

Risk will also pass to her as she owns the property,s.20(1). But she may argue that the goods are at risk of the party at fault, Demby Hamilton v Bardan; s.20(2). Besides, custodian must take reasonable care to make sure the safety of the goods, s.20(3). It is ABC shop's responsibility to guarantee the quality of the milk, therefore, risk will not pass to Mary and ABC shop may bear the loss.

Any comment? Or I should deal with the s.18 r.5 instead? Please correct me if I am wrong. Thanks in advance :smile:

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