COMM 304 Lecture Notes - Lecture 1: Personal Property
Document Summary
Possession is not 9/10th of the law: ownership is what matters. In sale by auction, it is complete when the auctioneer announces its competition by the drop of the hammer or other actions until that time the bidder may retract its bid. Security agreement (sale of goods contract: conditional sales contract, when buyer goes to seller, seller gives up possession, and retains security (ownership) until the buyer has completed the contract through full payment lien agreement (possessors" right). A security agreement must clearly reserve ownership for the seller. Otherwise title is considered to pass from seller to buyer the moment the contract is made: has a seller which has possession and title and a buyer. The seller gives up possession but keeps ownership until the conditions of the contract have been met in full. Sometimes called a lien agreement (possessory right: eg. Buyer has ,000 left to pay on car. Seller has lien right if the buyer defaults on payments.
