Torts (Interference With Goods) Act 1977

Uncollected Goods And Notice Of Intention To Sell

• What does this Fact Sheet cover?
• What legislation must be complied with?
• What does S.12 say?
• What are Part I and Part II?
• What information must be on a Part I notice?
• What information must be on a Part II notice?
• Important Notes

What does this Fact Sheet cover?

Where goods have been bailed (e.g given for repair or other treatment) or (given for valuation or appraisal), by a bailor (consumer) to a bailee (trader).

This Fact Sheet covers rights of traders and consumers when such goods remain uncollected.

What legislation must be complied with?

S.12  and Part  I and Part II of Schedule 1 of the Torts (Interference with Goods) Act 1977.

What does S.12 say?

S. 12 contains the code for dealing with uncollected goods. It applies:

1. Where the owner fails to take delivery of bailed goods; or
2. The trader could impose an obligation on the owner to do so but cannot trace him; or
3. The trader could expect to be relieved of his duty to safeguard the goods on notice to the owner but cannot trace him.

What are Part I and Part II?

Part I of Schedule 1 contains a power to impose an obligation on the owner to collect goods by notice in writing, containing statutory information.

Part II enables a notice of intention to sell to be served. This notice must be in writing and must be sent by recorded delivery or registered post and if money is due the period between the day of the notice and proposed sale must be at least 3 months.

It is possible (and probably sensible) to combine the two notices but in this case the statutory information must be included and the method of posting in Part II must be used.

Traders must understand that the power of sale only applies when they can be "reasonably satisfied" that the bailor -the person who left the goods-"owns the goods".

An obvious solution to avoid the difficulty is for the traders to incorporate a simple term in their conditions of business allowing them to sell if goods are not collected after a reasonable (and clearly stated) period and they should take careful note of the name and address of the customer

What information must be on a Part I  notice?

The notice shall be in writing, and may be given either:

1. By delivering it to the  bailor, or
2. By leaving it at his proper address, or
3. By post.

The notice shall-

1. Specify the name and address of the bailee, and give sufficient particulars of the goods and the address or place where they are held, and
2. State that the goods are ready for delivery to the bailor, or where combined with a notice terminating the contract of bailment, will be ready for delivery when the contract is terminated, and
3. Specify the amount, if any, which is payable by the bailor to the bailee in respect of the goods and which became due before the giving of the notice.

What information must be on a Part II  notice?

Notice Of Intention To Sell

A notice of intention to sell shall:

1. Specify the name and address of the bailee, and give sufficient particulars of the goods and the address or place where they are held, and
2. State the date on or after which the bailee proposes to sell the goods, and
3. Specify the amount, if any, which is payable by the bailor to the bailee in respect of the goods and which became due before the giving of the notice.

Important Notes

1. The period between giving notice and the date specified in the notice as that on or after the bailee proposes to exercise the power of sale shall be such as to afford the bailor a reasonable opportunity of taking delivery of the goods.
2. If any amount is payable in respect of the goods by the bailor to the bailee, and became due before giving of the notice, the said period shall be not less than 3 months
3. The bailee shall not give a notice to sell or exercise that notice that, because of a dispute concerning the goods, the bailor is questioning or refusing to pay all or any part of what the bailee claims to be due to him in respect of the goods.

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