Rules as to Delivery of Goods

1. Delivery: The parties may agree to regard anything as delivery if it results in the items being in the buyer’s or authorized representative’s possession.

2. Effect of Part Delivery (Section 34): Delivering a portion of goods while the whole is being delivered has the same implications as passing the property. However, delivering a portion of goods with the objective of severing it from the whole does not operate as a delivery of the remainder.

3. Buyer Must Apply for Delivery (Section 35): The seller of goods is not bound to deliver the goods until the buyer applies for delivery, informing the time and place of delivery, apart from the case of an express contract.

4. Delivery Locations [Section 36(1)]: Whether the buyer takes ownership of the products or the seller sends them to the buyer is determined by the written or implicit contract between the parties. Aside from any such contract, commodities sold are to be delivered at the location at which they are at the time of the sale, and goods agreed to be sold are to be delivered at the place at which they are at the time of the agreement to sell, or not then in existence, at the location where they are made or produced.

5. Time of Delivery [Section 36(2) & (4)]: If the seller is required to transmit products to the buyer but the time is not specified in the contract, they must send them within a reasonable time frame.

6. Goods Held by a Third Party: Where the products are in the custody of a third party at the time of sale, no delivery occurs until and unless such third party acknowledges to the buyer stating that the goods are possessed on his behalf. This clause, however, has no bearing on the procedure of issuing or transferring any document of title to goods.

7. Time for Tender of Delivery: Delivery must be made within a reasonable time frame or it may be considered ineffective. What constitutes an acceptable hour is an issue of fact.

8. Expenses for Delivery [Section 36(5)]: The seller is responsible for all expenses related to preparing the items for delivery, unless a contract states otherwise.

9. Delivery of Incorrect Amount (Section 37): If the seller delivers to the buyer a number of goods smaller than he committed to sell, the buyer may reject them; nevertheless, if the buyer accepts the products as provided, he must pay for them at the contract rate. When the seller delivers to the customer more products than he agreed to sell, the buyer has the option of accepting the commodities contained in the contract and rejecting the remainder, or rejecting the entire transaction. If the buyer approves all of the products supplied, he will pay for them at the negotiated rate.

10. Installment Deliveries (Section 38): The buyer of goods is not required to accept delivery in installments, except in the case when the same has been agreed between the both parties. The contracting parties may decide their rights and obligations in circumstances of installment delivery and payments.

11. Delivery to Carrier (Section 39): According to the contract, delivering goods to the carrier for transmission to the buyer is considered delivery to the buyer.

12. Deterioration During Transport: When products are sent to a remote location, the buyer is responsible for any deterioration that occurs during transit, even if the seller agrees to deliver at their risk.