Professional Documents
Culture Documents
Citations:
-- Your use of this HeinOnline PDF indicates your acceptance of HeinOnline's Terms and
Conditions of the license agreement available at
https://heinonline.org/HOL/License
-- The search text of this PDF is generated from uncorrected OCR text.
-- To obtain permission to use this article beyond the scope of your license, please use:
Copyright Information
Sale Or Return and Sale On Approval
of Goods
Modern Law With Ancient Antecedents
DANIEL E. MuRRAY*
vendee tenders the chattel to the vendor, the vendee then becomes
a bailee under a mutual benefit bailment and is liable only for a
failure to exercise reasonable care.8 Under this arrangement, the
9
original contract of sale is subject to a condition subsequent. When
goods are delivered to the vendee "on approval", "on trial" or "on
satisfaction", the American law follows the English law, with the
result that title does not pass until there has been an actual or an
implied-in-law acceptance. 10 In such a case, the risk of loss falls
upon the vendor until title passes to the vendee, unless the contract
of sale is to the contrary."
The Uniform Commercial Code has made at least two major
changes in the former codification: (1) unless it is agreed otherwise,
in order for the contract to be a sale on approval the goods have to
be delivered "primarily for use' ' 1 2 or "primarily for resale"'1 in
order to be a sale or return. (2) In a sale or return contract an actual
4
return of the chattels by the vendee to the vendor is required' -
5
formerly a tender was sufficient.' In a sale on approval it would
appear that the vendee need only give notice of his election to re-
turn the goods in order to relieve himself of liability. 1 There seems
to be no change in the former rules that in a sale or return the risk
remains on the vendee, while in a sale on approval the risk is borne
7
by the vendor until the vendee accepts the goods.'
Most modern texts on the law of sales pay exiguous attention to
the underlying sources of sales on approval and sales or return. The
discussion seldom mentions any authority prior to the eighteenth
century.'8 It is the view of the author that the present American
law greatly resembles the Roman law and that this resemblance can
be traced through the evolution of the medieval English law into
the present law of England. It is not asserted that the Roman con-
cepts of separating risk from ownership by contract found their
way early into the medieval English law. The English focused their
attention upon possession and traced the risk of loss from that fact
8
Note, 24 So. CAL. L. REV. 125 (1950).
9A "resolutive condition" in the civil law. See ZULUETA, THE ROMAN LAW OF
SALE 59 (1945); MOYLE, THE CONTRACT OF SALE IN THE CIVIL LAW 82 (1892).
10Compare SALE OF GOODSAcT § 18 (4) (1893), with U.S.A. § 19 (3) (2).
U U.S.A. § 22; SALE OF GOODS § 20 (1893).
U.C.C. § 2-326 (1)(a).
IsU.C.C. 2-326 (1) (b).
I- U.C.C. 2-327 (2), comment 4.
U.S.A. § 19 (3).
'. U.C.C. 2-327 (1) (c).
17U.C.C. § 2-327, comment 3; HAWKLAND. op. cit. supra note 2, at 102-03.
5
' See, e.g., GOODEVE, PERSONAL PROPERTY 104 (9th ed. Kersley 1949); BENJA-
MIN, op. cit. supra note 4, at 315-21.
January.] SALE OF GOODS
the contract and the payment of earnest money, but claimed that
the contract was made:
on condition that if the said fish should be suitable, as the
said Hamon assured him that it was, and not corrupt, the con-
tract and covenant between them should stand; but because
the said William found the fish corrupt and fetid, he refused
to accept it and wholly rejected it and remised it'into the
hands of the said Hamon, who did therewith as he pleased....
Afterwards they make concord, and William puts himself
4
in
mercy 12d.; pledge, his body; he has paid [the fine]. "
The words "the contract and covenant between them should stand"
and "rejected and remised it" would seem to indicate a sale or re-
turn (condition subsequent) under modern notions.
Only one reference to sales of goods on condition is found in the
Year Books, and this reference was dictum. In 1428, Cheine, J.
stated: "As if I appromps a horse to you, to have and to hold to
the feast of Christmas, from then to give the horse or ten pounds
to me, at my election, since the day [Christmas] I am able to have
a writ of debt or a writ of detinue." 4 6 Fritz-Herbert in his Natura
Brevium (c. 1534-37) restated this concept with more particularity
as to the form of the remedy by the vendor: "If a man lend another
man a horse until a certain day, and then he to redeliver the horse
or ten pounds at the same day, after the day if the horse be not
delivered, it is in his election to bring an action of debt for the
horse in the detinet, or an action of debt for the ten pounds in the
47
debet."
It is not clear why Cheine chose to give the example of an agree-
ment drawn in favor of the vendor rather than the vendee. Glan-
vill merely hinted that the contract of sale could give the vendor
the right to withdraw. Fleta's examples all concerned the vendee's
rights to approve or disapprove of the sale. Cheine may have had
the pactum de retrovendendo of the Roman law in mind. This pac-
turn gave the vendor an election to re-purchase the goods at an
agreed price and usually within an agreed period of time.4" The
pactum was a contractual right which did not act as a condition to
the sale. Therefore, the risk of loss and benefit of the gain would
' Ibid.
" Y.B. Mich. 7 Hen.VI, f. 7, pl. 9 (1429). "Come si jeo appromps a vous un
cheval, a aver tanquer al' Feste d' Nouel, a don quo a doner arermain a moy le
cheval a x V"a ma election, puis le jour jeo puisse aver bre de Debte or bre de
Detinue."
7
1 FiTZ-HERBERT, NATuRA BREviUM 279 (9th ed. with Hale's commentaries 1793).
"See BUCKLAND, op. cit. supra note 23, at 492,
WISCONSIN LAW REVIEW [Vol.'1962
"See ZULUETA, op. cit, supra note 9, at 58; MOYLE, op. cit. supra note 9, at
176-77.
60See generally, Murray, Sale in Market Overt, 9 INT'L & COMP. L.Q. 24 (1960).
"ISb. Anon. 1 Dyer 99b, 73 Eng. Rep. 217, 218 (1553). See also Plowden's
view that: "Wherefore contracts or agreements conditional shall be said good
after the condition is performed, but before that they are no more than com-
munications .... " Reniger v. Fogossa, 1 Plowd. 11, 75 Eng. Rep. 18 (1552).
Compare Cooke v. Oxley, 3 T.R. 653, 100 Eng. Rep. 785 (1790), where the
agreement was wholly executory. •
2 COKE, INSTiTumS 713, para. 9 (3d ed. 1669). "The contract'[of sale] must
be. originally and wholly made. in. the market overt, and not to have the. incep-
tion 'oUtof the market, ;and" the consummation in the market." .
032 Mod. 242, 86 Eng. Rep. 1050 (.1678).. -.. '. . .
January] SALE OF GOODS
ever, the court did rule that this agreement "[t]o have the sheep if
Alston would pay such a sum of money at a future day, will not
amount to a sale, and the new property is changed [?], and conse-
quently the sale by H. to the plaintiff before the day is good, and
so the property of the sheep is in him."5 4 Apparently the court con-
sidered this provision to be a condition precedent to the sale. It is
interesting to speculate as to what the decision of the court would
have been if the sheep had been stolen or destroyed while in the
possession of Alston prior to the agreed day. This case, although
not cited by Comyns, would . seem to support his view that "if a
personal thing be granted - upon a condition precedent; the proper-
,ty does not vest till the condition [is] performed." 55
In conclusion, it is most remarkable to observe the similarity be-
tween the Roman and the modern Anglo-American law even
though the Romans approached the question of risk from the
standpoint of contract while the English and Americans approach
it from the standpoint of the passing of the property. Despite the
different theories, it seems that on sales or return or on approval
both the Roman and the present day English view agree that the
risk of total loss rests upon the vendor. The American view is the
same when the transaction is a sale on approval. However, on a
sale or return the risk passes to the vendee as an incidence of title.56
The medieval English view that risk followed possession (because
usually the possessor was the owner) would seem to represent a
hodgepodge of Roman and Germanic laws-an attempted blend-
ing of contract and property principles which still plagues the
American courts.
Ibid.
55COMYNS, DIGEST 94, Conditions, § B3 (5th ed. 1825).
wThe American view would appear to be consistent with one Roman text,
that the risk is placed upon the vendee when a resolutive condition is involved.
See note 22 supra. Cf. note 29 supra.