Clause 8

This section applies to a contract for the sale of a specified quantity of unascertained goods if the following conditions are met:

the goods or some of them form part of a bulk which is identified either in the contract or by subsequent agreement between the parties; and

the buyer has paid the price for some or all of the goods which are the subject of the contract and which form part of the bulk.(2) Where this section applies, then (unless the parties agree otherwise), as soon as the conditions specified in paragraphs (a) and (b) of subsection (1) are met or at such later time as the parties may agree —

property in an undivided share in the bulk is transferred to the buyer; and

the buyer becomes an owner in common of the bulk.(3) Subject to subsection (4), for the purposes of this section, the undivided share of a buyer in a bulk at any time shall be such share as the quantity of goods paid for and due to the buyer out of the bulk bears to the quantity of goods in the bulk at that time.(4) Where the aggregate of the undivided shares of buyers in a bulk determined under subsection (3) would at any time exceed the whole of the bulk at that time, the undivided share in the bulk of each buyer shall be reduced proportionately so that the aggregate of the undivided shares is equal to the whole bulk.(5) Where a buyer has paid the price for only some of the goods due to him out of a bulk, any delivery to the buyer out of the bulk shall, for the purposes of this section, be ascribed in the first place to the goods in respect of which payment has been made.(6) For the purposes of this section, payment of part of the price for any goods shall be treated as payment for a corresponding part of the goods.Deemed consent by co-owner to dealings in bulk goods20B.—

A person who has become an owner in common of a bulk by virtue of section 20A shall be deemed to have consented to —

any delivery of goods out of the bulk to any other owner in common of the bulk, being goods which are due to him under his contract; or

any dealing with or removal, delivery or disposal of goods in the bulk by any other person who is an owner in common of the bulk in so far as the goods fall within that co-owner’s undivided share in the bulk at the time of the dealing, removal, delivery or disposal.(2) No cause of action shall accrue to anyone against a person by reason of that person having acted in accordance with paragraph (a) or (b) of subsection (1) in reliance on any consent deemed to have been given under that subsection.(3) Nothing in this section or section 20A shall —

impose an obligation on a buyer of goods out of a bulk to compensate any other buyer of goods out of that bulk for any shortfall in the goods received by that other buyer;

affect any contractual arrangement between buyers of goods out of a bulk for adjustments between themselves; or

affect the rights of any buyer under his contract.”.