Successful Tips on Transfer of Property of Goods in Kenya
Transfer of Property of Goods in Kenya is a very crucial topic especially in business related fields. The precise moment at which property of goods passes from the seller to the buyer is of great importance.
Rules regarding Transfer of Property of Goods in Kenya
Rules regarding transfer of property of Goods in Kenya may be considered from two dimensions.
- Transfer of property is in specific or ascertained goods
- Transfer of property in unascertained or future goods
Transfer in Specific or Ascertained Goods is one of the rules to follow in Transfer of Property of Goods in Kenya.
The parties to the contract determine when property is transferred be it at the time of making the contract or at delivery. In the absence of such express terms the following rules will apply.
When Goods in Kenya are in a deliverable state in this case property is transferred at the time of contracting regardless of when the price is to be paid or delivery to be made.
When have to be put in a deliverable state in which case the buyer must be notified when the goods are in a deliverable state.
When Goods in Kenya have to be measured to ascertain price in which case the buyer must be notified once the goods have been ascertained.
When goods are delivered on approval then property is passed when;
- The buyer signifies his approval or acceptance or does any to adapt the transaction
- The buyer retains the good without giving notice of rejection beyond a time fixed for the return of goods.
Transfer in Unascertained or Future Goods in Transfer of Property of Goods in Kenya
Transfer in Unascertained or Future Goods is another rule that should be followed in Transfer of Property of Goods in Kenya.
Transfer of property of Goods in Kenya will only take place after ascertainment of or after the goods have been put in a deliverable state.
- An unauthorized sale by a non mercantile agent-As a rule a mercantile agent having authority to sell Goods in Kenya conveys a good title to the buyer.
- Transfer of title by estoppel-This principle of estoppel holds that it is unfair and unjust to allow a party to depart from a particular state of affairs which he has led another person to believe to be true.
- Sale by a person in possession under a voidable contract. If Goods in Kenya are sold before the contract rescinded the buyer obtains title as long as he is acting in good faith and has no prior knowledge of defect in title.
- Sale by seller after sale-The seller has sold the goods again after selling it. As long as there is no knowledge of previous sale then the buyer will obtain a good title.
- Sale by a buyer in possession after agreement to buy. As long as it is in good faith and no prior knowledge of lien then buyer obtains good title.
- Resale by a unpaid seller-If he has waited for a reasonable time the seller can sell to another person.
Performance of a contract in the Transfer of Goods in Kenya is when either party have fulfilled their duties according to the rules of the contract of sale implies delivery of goods by the seller and acceptance of delivery of goods and payment for them by the buyer in accordance with the contract. Delivery can be described as the voluntary transfer of possession of goods from one person to another.
Rules to Delivery for Transfer of Goods in Kenya
Place of delivery of Goods in Kenya-Where the contract has stated the place of delivery the goods must be delivered there on a working day during working hours. If the contract does not state;
- In a sale of the goods they are delivered at the place where they are at the time of the sale
- In the case of an agreement to sell then they are delivered where they are at the time of the agreement.
- In the case of future goods are delivered at the place of manufacture of production
- Time of delivery-If it is not stated then it should be within reasonable time and at a reasonable hour.
Delivery of Goods in Kenya where they are in possession of a 3rd party-There must be constructive delivery. The 3rd party must acknowledge that he is holding the goods on behalf of the seller
Expenses of delivery-They are borne by the seller unless otherwise stated.
Delivery of wrong quantity (A defective delivery)
The quantity delivered is more or less or mixed (the seller has mixed qualities)
The buyer is entitled to the following;
Reject the whole consignment
Accept quality and quantity ordered and reject the rest of the goods
Acceptance of Goods in Kenya in relation to Transfer of Property of Goods in Kenya
The buyer is considered to have accepted the goods.
When he communicates to the seller that he has accepted.
When goods have been delivered to him and he doesn’t react regarding any inconsistencies.
When he retains the goods after the lapse of reasonable time without communicating any rejection.
Rights of an Unpaid Seller in relation to Transfer of Property of Goods in Kenya
A seller is considered to be unpaid under the following circumstances;
When the whole of the price has not been paid
When a bill of exchange given in payment is dishonored. The seller has two-fold rights
- Rights against the goods
- Rights against the buyer personally
Rights against Goods
These are exercisable even though property may have passed to the buyer
- Rights of lien
- Rights of stoppage of goods in transit
- Rights of resale
Rights against the Buyer
Are in addition to the rights against the goods
- Rights of unit for price
- Rights for damage for non acceptance
Rights of the Buyer in relation to Transfer of Property of Goods in Kenya
Suit for damages for non delivery of goods in Kenya
- Suit for specific performance
- Suit for damages for breach of warranty
- Suit for rescission of contract and damages for breach of condition
- Suit for recovery of price together with interest.
There is more information on how to do Business in Kenya in Business Training in Kenya
Conclusion of Transfer of Property of Goods in Kenya
Transfer of Property of Goods in Kenya is a very crucial aspect in business. With regard to the information provided above, the issues concerning Goods in Kenya has been extensively covered.