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Mark Treherne & Associates
Disposal of Uncollected Goods
Any goods that are accepted in the course of a business for inspection, custody, storage, repair, or other
treatment on the terms that they be re-delivered to the bailor may if uncollected by the bailor be able to be
sold by the bailee
The bailee will be able to sell the goods subject to certain restrictions as long as the bailee did not have
notice that the goods were subject to a hire purchase agreement before accepting the goods and:
(i) the bailor fails to pay the bailee's charges in relation to the goods or
(ii) the bailor fails to take delivery of the goods having paid the charges, or give directions as to the delivery
of the goods
The bailee will then only be able to sell the bailor's goods if the bailee follows the following procedures
(a) a sign must be conspicuously displayed that the acceptance by the bailee of the goods is subject to the
act, and that this act confers on the bailee a right of sale exercisable in certain circumstance after an
interval not less than 6 months from the date on which the goods are ready for re-delivery;
(b) after the goods are ready for re-delivery the bailee must give to the bailor notice that the goods are
ready for re-delivery - the notice must meet the requirements of ss (2) - notice must also be given to every
other person the bailee knows has or claims no interest in the goods;
(c) if the goods exceed the sum of $110 at the date notice is given the bailee can sell the goods if it has
obtained a court order under part 3 of the act;
(d) except pursuant to a court order under part 3 the bailee must after the 6 months after the last notice to
the bailor that the goods are ready for re-delivery and not less than 28 days before the sale of he goods
give notice to the bailor of the bailee's intention to sell the goods. Notice must be given to the bailor, any
person who at the time the bailee knows has or claims an interest in the goods or cause such a notice to be
published in a particular newspaper. This notice must also comply with ss (2);
(e) or the goods can be sold by public auction in a lot where no other goods are included.
The requirements of the notice are as follows:
(a) sufficient description of the goods
(b) where the goods are a motor vehicle the particulars of the make, model type, colour, registration
number, chassis number (if any), body number (if any), and engine number of the vehicle along with how
and when it came into the bailee's possession and if any part of the vehicle is removed under the contract of
bailment the number of the part so removed
(c) statement of the sum the bailee claims to be due for the bailee's charges under the contract of bailment
(d) for notice that goods are ready for re-delivery - a statement that the goods are liable to be sold under
the Act if the bailor fails to pay the bailee's charges, or having paid the charges fails to take delivery of the
goods
(e) notice of bailee's intention to sell goods - a statement that the goods are ready for re-deliver and that
they are liable to be sold if the bailor fails to pay the charges owing to the bailee or if the charges have been
paid, to take delivery of the goods within 28 days of the date of the notice.
The notice must be dated at least 6 months after the goods are available for re-delivery or in the case of a
dispute over the goods has arisen when the dispute has been finalised any such notice must be served by
delivering it personally, or leaving it at the person's last known place of abode with a person who either also
lives there or is employed there and who is over the age of 16, or by posting it addressed to the person at
the person's last known place of abode.
If a dispute between the bailee and bailor arise over the goods prior to a notice of intention to sell the goods
or a notice to apply for a court order under part 3, the bailee's right to sell the goods is suspended - a
dispute will generally come to an end when a notice that the dispute as determined is served which should
Mark Treherne & Associates
Ph. (07 55 808 87)
e: support@marktreherne,com
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Mark Treherne & Associates
state that unless the bailor objects within a month of giving the said notice the dispute will be at an end, the
form of the notice shall be as prescribed above.
After the sale of the goods any profit exceeding the bailee's charges relevant to the goods is recoverable by
the bailor and within 7 days of the date of the sale a record in relation to the goods must be prepared
outlining certain particulars, the record should be kept for 6 years should the bailee continue the business
for that periods and anyone who therein claims an interest in the goods can inspect the record for 20c.
The bailee may apply for a court order to sell the goods provided the sign as mentioned above appears at
the premises and a notice that goods are available for re-delivery has been provided. This may be a way of
getting around the six month ordinary waiting period provided a notice of intention to apply for a court order
is provided to the bailor at least 28 days before the application is made.
Mark Treherne & Associates
Ph. (07 55 808 87)
e: support@marktreherne,com
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