Sale of Goods Act Section 39 — Delivery to carrier or wharfinger
CHAPTER IV PERFORMANCE OF THE CONTRACT
Commercial / Corporate
Summary
Sub-section (1) covers the situation where, under a sale contract, the seller is allowed or required to send the goods to the buyer. In that case, handing the goods over to a carrier (whether the carrier was chosen by the buyer or not) for the purpose of sending them to the buyer, or handing them to a wharfinger for safe storage, is treated as delivery of the goods to the buyer unless the contrary is shown.
Sub-section (2) says that unless the buyer has authorised something different, the seller must make a reasonable contract with the carrier or wharfinger on the buyer's behalf, taking into account the nature of the goods and the surrounding circumstances. If the seller fails to do this and the goods are lost or damaged during transit or while in the wharfinger's custody, the buyer can either refuse to treat the delivery to the carrier or wharfinger as delivery to himself, or hold the seller responsible for damages.
Sub-section (3) deals with goods sent by sea. Unless the parties have agreed otherwise, if the seller sends the goods by a route that involves sea transit and it is usual to insure such goods, the seller must give the buyer enough notice to allow the buyer to insure the goods during the sea transit. If the seller fails to give this notice, the goods are considered to be at the seller's risk during that sea transit.
Official Text
(1) Where, in pursuance of a contract of sale, the seller is authorised or required to send the goods to the buyer, delivery of the goods to a carrier, whether named by the buyer or not, for the purpose of transmission to the buyer, or delivery of the goods to a wharfinger for safe custody, is prima facie deemed to be a delivery of the goods to the buyer.
(2) Unless otherwise authorised by the buyer, the seller shall make such contract with the carrier or wharfinger on behalf of the buyer as may be reasonable having regard to the nature of the goods and the other circumstances of the case. If the seller omits so to do, and the goods are lost or damaged in course of transit or whilst in the custody of the wharfinger, the buyer may decline to treat the delivery to the carrier or wharfinger as a delivery to himself, or may hold the seller responsible in damages.
(3) Unless otherwise agreed, where goods are sent by the seller to the buyer by a route involving sea transit, in curcumstances in which it is usual to insure, the seller shall give such notice to the buyer as may enable him to insure them during their sea transit, and if the seller fails so to do, the goods shall be deemed to be at his risk during such sea transit.