instructions and the grain is then destroyed by fire, the loss falls upon B because the grain has been delivered.

2. Where Something Remains to Be Done. When goods are sold, a counting, a measuring, or certain work to be performed by the seller is frequently necessary before the buyer can take possession. Suppose a merchant sells one hundred barrels of sugar out of a stock, these must be counted and set aside; or he sells one hundred bushels of wheat from a bin, the wheat must be measured. Until these things are done, the title does not pass. Chancellor Kent gives the following test: "If anything remains to be done as between the seller and the buyer, before the goods are to be delivered, a present right of property does not attach in the buyer."

3. Sales of Goods and Contracts for Labor should be carefully distinguished. If the transaction is a sale, the requirements of the Statute of Frauds must be complied with; if it is a contract for labor, the statute is not applicable.

4. Bargain and Sale. The requisites of a sale are five in number, namely, (1) that the agreement be binding in form, (2) that the property be in existence, (3) that the seller be the owner or have authority to sell, (4) that the property be specific, and (5) that the sale be for money. The title to the property in a bargain and sale passes at once-as soon as the contract is complete.

5. Contract to Sell. This is an agreement entered into by which one agrees to sell and deliver to another at a future time property already in existence or which by the result of labor is to be made ready for delivery at the agreed future time. There are two requisites, (1) that the agreement be legally binding, and (2) that the sale be for money.

A sale is complete when the agreement is complete, but a sale without delivery is not looked upon favorably by the law since it presents opportunities for fraud. Delivery is usually made by manual transfer or setting aside, and is complete when the buyer exercises his rights

of ownership. A contract for labor does not fall within the operation of the Statute of Frauds.

The requisites of a bargain and sale are a binding agreement, subject matter in existence, authority to sell, identification of property, and a money consideration.

The requisites of a contract to sell are a binding agreement and a money consideration.

When is a sale complete? Give an instance in which a sale may be void for want of delivery.

Discuss the question of loss when goods are destroyed both before and after delivery.

Mention a distinction between a sale of goods and a contract for

labor.

What are the requisites of a sale? What are the requisites of a contract to sell? What is the difference between a sale and a contract to sell?

Sales on trial are

245. Conditional Sales. 1. On Trial. conditioned upon giving satisfaction for a definite time after trial. The buyer receives the goods and after subjecting them to certain tests satisfies himself as to their quality. If the seller's representations have been verified by the trial, a sale is the result; if not, the buyer is at liberty to return the goods, but this must be done before the expiration of the agreed time. Title does not pass at time of delivery; it passes, if at all, when the conditions have been fulfilled.

Sales are sometimes made whereby the purchaser is not to acquire title until some condition precedent has been complied with. Generally this condition is payment. The goods may be delivered and payments made by installments, the title remaining in the seller until the last payment has been made. As between

seller and buyer, there can be no question as to the fairness and honesty of such a deal. When, however, the rights of an innocent third party intervene, the question is more difficult. The different state courts are not uniform in ruling on the question, some holding that the original seller must be protected, while others favor the innocent purchaser.

2. Sale or Return. This may be a sale, and if so the title passes at the time of transferring the possession of the chattel. However, as a part of the agreement, the buyer has the right to return or re-sell the article to the first owner in the event of certain contingencies. But if the title does not pass, it is a contract to sell on trial. In the first case the loss of the chattel if destroyed falls on the buyer, while in the second case it falls on the seller.

3. Sale by Sample. A common way of selling goods is to give a small quantity to the buyer for his inspection. The understanding is that the bulk shall equal the sample as to quality. There is no undertaking as to the quality or grade of the sample, simply that the sample is a fair representation of the bulk.

If goods are sold by description, the goods must be as described or the buyer may refuse to receive them.

When sales are made conditional upon some event or quality, the buyer may refuse to accept the goods unless the condition is complied with.

246. Chattel Mortgage. A chattel mortgage is a conveyance of the title to personal property as security for the payment of a debt or the performance of a promise. In a chattel mortgage the title is legally transferred, but it is usual for the seller to retain possession of the goods. It is customary to give a note for the debt, and the chattel mortgage is given as security for the payment of the debt. When the note or debt is paid the mortgage is of no force. Statutory law requires the registration of a chattel mortgage. If the debt is not paid at the stipulated time the law provides a regular way by which the property described in the mortgage may be sold upon foreclosure to satisfy the debt.

CHATTEL MORTGAGE

Know all Men

THAT I, William B

Roswell

by these Presents,

of the Town of Austin- in the County of

Cook

and

of the County of......

receipt whereof is hereby acknowledged, do.... ..hereby GRANT, SELL,

CONVEY and CONFIRM, unto the said.

and to.... his

CHATTELS, to-wit:

George Bowman

heirs and assigns, the following GOODS AND

10 head cattle, 6 horses, 90 sheep and 10 hogs, now on the Riverside Farm in the township of Vernon

To Have and to Hold All and singular the said Goods and Chattels, unto

the said Mortgagee.......herein, and.. administrators and assigns, to him

his.

heirs, executors,

and their sole use, FOREVER.

And the Mortgagor......herein, for himself — and for:

his

heirs, executors and administrators, does. hereby covenant to and with the said Mortgagee......9 his heirs, executors, administrators and assigns,

that said Mortgagor. as of his — and that.

he

is lawfully possessed of the said Goods and Chattels, :.own property; that the same are free from all encumbrances, ..will, and ———— his executors and administrators the said Mortgagee....-..., his ..heirs, executors, administrators and assigns, against the lawful claims and demands of all persons.

shall, warrant and defend the same to....

his

Provided, Nevertheless, That if the said Mortgago........... executors or administrators, shall well and truly pay unto said Mortgagee....

his executors, administrators or assigns, the sum of one thousand dollars, according to the terms of a certain promissory note this day executed and delivered to the said George Bowman, which note together with the interest thereon is due and payable on the fifteenth day of August nineteen hundred and fourteen then this Mortgage is to be void, otherwise to remain in full force and effect. And, Provided, also, That it shall be lawful for the said Mortgagor.. his executors, administrators and assigns, to retain possession of the said GOODS AND CHATTELS, and at: his ...... own expense, to keep and use the same, until.. he executors, administrators

or assigns, shall make default in the payment of the said sum of money above specified, either in principal or interest, at the time or times, and in the manner