Mercer v Craven Grain Storage Ltd
1994 · [1994] CLC 328
Posted By lanbuk.com
- Facts
- Farmers delivered grain to a storage society. Each delivery was mixed with other farmers' grain. The mass was constantly added to and drawn on. The agreement said the grain remained the property of the grower.
- Issue
- Can there be a where the cannot return the particular goods, only a quantity from a mixed bulk?
- Held
- Yes. The society was bailee of the grain.
- Principle
- So long as the person in possession does not become owner, commingled goods can be bailed. The duty is to account for a quantity, not to return the identical grains.
- Why it matters
- It distinguishes a true bailment of a mixed bulk from a transfer of title, as in Chapman Bros v Verco Bros, where the store only had to deliver equivalent goods and the depositor was left unsecured on insolvency.
Words and Latin in this note
- Bailment
- A transaction in which a bailee lawfully receives possession of the bailor's goods for a purpose. Ownership stays with the bailor. It is its own source of duties, and it does not require a contract. Open the note.
- Bailee
- The person who lawfully receives possession of goods from the bailor for some purpose, and must take care of them and return the same goods. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.