DISPOSAL OF UNCOLLECTED GOODS ORDINANCE

DISPOSAL OF UNCOLLECTED GOODS ORDINANCE

LAWS OF HONG KONG

DISPOSAL OF UNCOLLECTED GOODS

ORDINANCE

CHAPTER 294

REVISED EDITION 1984

PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER

HONG KONG








CHAPTER 294

DISPOSAL OF UNCOLLECTED GOODS

To authorize the disposal of goods accepted in the course of a
business for repair or other treatment but not redelivered and for
purposes connected therewith.

[1 January 1970.]

1. This Ordinance may be cited as the Disposal of Uncollected
Goods Ordinance.

2. (1) This Ordinance shall apply in relation to the bailment of any
goods accepted (whether before or after the commencement of this
Ordinance) by the bailee, in the course of a business, for repair or other
treatment on the terms (express or implied) that they will be redelivered
to the bailor or in accordance with the bailor's directions when the
repair or other treatment has been carried out and on payment to the
bailee of such charges as may be agreed between the parties or as may
be reasonable.

(2) Where goods accepted as aforesaid are ready for redelivery
but the bailor fails both

(a)to pay or tender to the bailee his charges in relation to the
goods; and

(b)to take delivery of the goods or, if the terms of the bailment
so provide, to give directions as to their delivery,

the bailee shall, subject to the provisions of any agreement between
him and the bailor and to the following provisions of this Ordinance, be
entitled, while the failure continues, to sell the goods.

(3) The bailee shall not be entitled by virtue of subsection (2) to
sell goods accepted by him for repair or other treatment unless the
following provisions are complied with, that is to say

(a)at all premises used or appropriated by the bailee for
accepting for repair or other treatment goods of the class to
which the goods accepted belong. there is, at the time of the
acceptance (whether or not the goods are accepted at any
such premises), conspicuously displayed in the part of the
premises so used or appropriated a notice written in English
and Chinese indicating that the acceptance by the bailee of
goods of that class for repair or other treatment is subject to
the provisions of this Ordinance and that this Ordinance
confers on the bailee a right of sale exercisable in certain
circumstances after an interval of not less than 12 months
from the date on which the goods are ready for redelivery;

(b)after the goods are ready for redelivery, or after the
commencement of this Ordinance, whichever is the later. the





bailee gives to the bailor a notice that the goods are ready
for redelivery, being a notice complying with the require-
merits of subsection (7);

(e)after the expiration of the period of 12 months beginning
with the date of the giving of the notice that the goods are
ready for redelivery and not less than 14 days before the
sale of the goods, the bailee gives to the bailor a notice of
his intention to sell the goods, being a notice complying
with the requirements of subsection (7),

and the bailee shall not be so entitled to sell the goods in a lot in
which goods not accepted by him from the bailor are included or to
sell them otherwise than by public auction:

Provided that-
(i)paragraph (a) shall not apply in relation to any goods
accepted before the commencement of this Ordinance for
repair or other treatment;
(ii)where the notice of the bailee's intention to sell the goods
states, in addition to the matters required to be contained
therein by subsection (7), the lowest price which he is
prepared to accept on a sale of the goods by virtue of this
section, he may sell the goods for not less than that price
otherwise than by public auction.

(4) Where, at any time before the giving of the notice of the
bailee's intention to sell the goods, a dispute arises between the
bailor and the bailee by reason of the bailor's refusal to pay the sum
which the bailee claims to be due to him by way of his charges in
relation to the goods, or to take delivery thereof or give directions as
to their delivery, on the ground that the charges are excessive or that
the bailor is not satisfied that the repair or other treatment of the
goods has been properly carried out, the bailee's right to sell the
goods shall be suspended until the dispute is determined.

(5) Without prejudice to any' other mode of determining a
dispute, it shall be treated for the purposes of this Ordinance as
having been determined if the bailee, at any time after the dispute
has arisen, gives to the bailor a notice (hereafter referred to as a
notice to treat the dispute as determined)-

(a)stating that unless, without the period of one month
beginning with the date of the giving of the notice, the
bailor objects thereto, the dispute will be treated for the
purposes of this Ordinance as having been determined; and

(b)in other respects complying with the requirements of
subsection (7),

and within the said period of one month the bailor does not object to
the notice; and where the dispute is so treated as having been
determined, the date on which it shall be so treated as having been
determined shall be the date of the giving of the notice.





(6) Where a dispute in relation to any goods is determined
(whether by virtue of subsection (5) or otherwise). subsection (3) shall
have effect in relation to those goods as if paragraph (b) thereof were
omitted and as if for the reference in paragraph (c) thereof to the date of
the giving of the notice that the goods are ready for redelivery there
were substituted a reference to the date on which the dispute is
determined.

(7) A notice required or authorized by this section to be given by
the bailee to the bailor must contain a sufficient description of the
goods to which the notice relates and a statement of the sum which the
bailee claims to be due to him by way of his charges in relation to the
goods, together with

(a)in the case of a notice that the goods are ready for redelivery
or a notice to treat the dispute as determined, a statement that
if the bailor fails. within the period of 12 months beginning
with the date of the giving of the notice, both to pay the said
sum and to take delivery of the goods or give directions as to
their delivery they are liable to be sold in accordance with the
provisions of this Ordinance;

(b)in the case of a notice of the bailee's intention to sell the
goods, a statement of the date of the giving of the notice that
the goods are ready for redelivery or. where there has been a
dispute between the bailor and bailee. the date on which the
dispute was determined. and a statement that if the bailor
fails, within the period of 14 days beginning with the date of
the giving of the notice of the bailee's intention to sell the
goods, both to pay the said sum and to take delivery of the
goods or give directions as to their delivery they are liable to
be sold in accordance with the provisions of this Ordinance.

3. (1) In this Ordinance, unless the context otherwise requires, the
expression -notice- means a notice in writing in English or Chinese.

(2) A notice required or authorized by this Ordinance to be given
by a bailee to a bailor shall, where the bailor is a corporation, be duly
given if it is given to the secretary or clerk of the corporation.

(3) A notice required or authorized by this Ordinance to be given
by a bailee to a bailor of the bailee's intention to sell the goods shall be
given by sending it by post in a registered letter.

(4) A notice required or authorized by this Ordinance to be given
by a bailee to a bailor, other than a notice of the bailee's intention to sell
the goods, may be given either

(a) by delivering it to the bailor; or

(b) by leaving it at his proper address; or

(c) by post.





(5) For the purposes of this section, and of section 8 of the
Interpretation and General Clauses Ordinance, in its application to this
section, the proper address of a person to whom a notice falling within
the provisions of subsection (3) or (4) is required or authorized to be
given shall, in the case of the secretary or clerk of a corporation, be that
of the registered or principal office of the corporation, and, in any other
case, be the last known address of the person to whom the notice is to
be given.

4. (1) Where goods are sold by virtue of the provisions of this
Ordinance, any amount by which the gross proceeds of the sale exceed
the charges of the bailee in relation to the goods shall be recoverable by
the bailor from the bailee and any amount by which the said charges
exceed the gross proceeds of the sale shall be recoverable by the bailee
from the bailor.

(2) Where goods are so sold, the bailee shall, before the expiration
of the period of 7 days beginning with the date of the sale of the goods,
prepare a record in relation to the goods containing the following
particulars, that is to say

(a) a sufficient description of the goods;

(b) the method, date and place of the sale;

(c)where the goods are sold by public auction, the name and
principal place of business of the auctioneer, and where they
are sold otherwise than by public auction and the gross
proceeds of the sale thereof are not less than $20, the name
and address of the buyer;

(d) the amount of the gross proceeds of the sale; and

(e)a statement of each item of the charges of the bailee in
relation to the goods and the transaction to which each item
relates,

and shall, during the period of 6 years beginning with the date on which
the record is prepared, keep the record together with a copy of the
notice of the bailee's intention to sell the goods and the certificate of
posting of the letter in which the notice was sent, and shall at any
reasonable time during the said period of 6 years, if so requested by or
on behalf of the bailor, produce the record, copy and certificate, or any
of them, for inspection by the bailor or a person nominated in that
behalf by him.

(3) A person who fails to comply with the provisions of subsection
(2) shall be guilty of an offence and shall be liable on conviction to a
fine of 51,000 and to imprisonment for 3 months (Amended, 21 of 1970,
s. 35)

5. (1) References in this Ordinance to goods accepted by a

bailee in the course of a business for repair or other treatment shall, in
relation to goods of any class, be construed as references to goods of
that class accepted by him for repair or other treatment in the





course of a business consisting of or comprising the acceptance by him
of goods of that class for repair or other treatment (whether or not the
repair or other treatment is effected by him) wholly or mainly from
persons who deliver to him, otherwise than in the course of a business,
goods of that class for repair or other treatment.

(2) References in this Ordinance to the charges of the bailee in
relation to any goods shall, subject to the provisions of any agreement
between the bailor and the bailee, be construed as references to the
amount agreed between them as the charge for the repair or other
treatment of the goods or, if no amount has been so agreed, a
reasonable charge therefor and, in a case where the goods have been
sold, the following additional amounts that is to say

(a)a reasonable charge for storing the goods during the period
beginning with the date of the giving of the notice that the
goods are ready for redelivery, or, where there has been a
dispute between the bailor and bailee, the date on which the
dispute was determined, and ending with the date of the sale;

(b) any costs of or in connexion with the sale: and

(c) the cost, if any, of insuring the goods.

(3) References in this Ordinance to a bailor or bailee of goods shall,
as respects a period during which his rights and obligations in relation
to the goods are vested in any other person. be construed as references
to that other person.

(4) The powers conferred on a bailee by this Ordinance shall be in
addition to and not in derogation of any powers exercisable by him
independently of this Ordinance.

6. (1) Where the bailee of goods accepted before the
commencement of this Ordinance for repair or other treatment does not
at the commencement of this Ordinance know any address of the bailor,
the bailee shall not be disentitled to sell the goods by reason only that
paragraphs (b) and (c) of section 2(3) are not complied with, if the
following provisions are complied with, that is to say--

(a)within the period of 6 months beginning with the
commencement of this Ordinance, the bailee publishes in an
English or Chinese newspaper a notice complying with the
requirements of subsection (4);

(b)at all premises used or appropriated by the bailee after the
commencement of this Ordinance for accepting for repair or
other treatment goods of the class to which the goods so
accepted belong, there is, throughout the period of 12 months
immediately following the expiration of the said period of 6
months or throughout that portion of the said period of 12
months during which the premises are so used or
appropriated, conspicuously displayed in the part of the
premises so used or appropriated a notice written in





English and Chinese indicating that, in.the case of goods
of that class accepted before the commencement of this
Ordinance for repair or other treatment, this Ordinance
confers on the bailee a right of sale exercisable in certain
circumstances after an interval of not less than 18 months
from the commencement of this Ordinance,

but the bailee shall not be entitled to sell the goods before the
expiration of the period of 18 months beginning with the commence-
ment of this Ordinance.

(2) Where the provisions of subsection (1) are complied with
in relation to any goods, the bailee shall, notwithstanding anything
in section 2(3), be entitled to sell them otherwise than by public
auction, and paragraph (ii) of the proviso to the said section 2(3)
shall not apply in relation to those goods.

(3) Where goods are sold by virtue of the fact that subsec-
tions (1) and (2) have been complied with. then sections 2 to 5
shall have effect in relation to the goods subject to the following
modifications, that is to say-

(a)for any reference in section 4(2) to a copy of the notice of
the bailee's intention to sell the goods and the certificate of
posting of the letter in which the notice was sent there shall
be substituted a reference to a statement of the name and
issue of the newspaper in which the notice under subsec-
tion (1)(a) was published;

(b)for the reference in section 5(2)(a) to the giving of the
notice that the goods are ready for redelivery there shall be
substituted a reference to the publication of the notice
under subsection (1)(a).

(4) A notice under subsection (1)(a) in relation to any goods
must contain-

(a)a sufficient description of the class to which the goods
belong;

(b)the name under which the bailee carries on the business
consisting of or comprising the acceptance of goods of that
class for repair or other treatment and the address of the
bailee's principal place of business or, where the bailee is a
corporation, the registered or principal office of the cor-
poration, and if the name or the address have changed
during the 12 months immediately preceding the date of
the publication of the notice, the last such name or, as the
case may be, the last such address preceding the change
thereof, and

a statement that if the bailor of the goods fails within the
period of 18 months beginning with the commencement of
this Ordinance both to pay the sum which the bailee claims
to be due to him by way of his charges in relation to the





goods and to take delivery of the goods or give directions
as to their delivery they are liable to be sold in accordance
with the provisions of this Ordinance.

(5) Where the bailee of goods accepted before the commence-
ment of this Ordinance for repair or other treatment does not at the
commencement of this Ordinance know any address of the bailor
and at any time during the period of 18 months beginning with the
commencement of this Ordinance a dispute arises between the bailor
and the bailee by reason of either or both of the matters mentioned
in section 2(4), subsections (1) to (4) shall not apply in relation to the
goods, but sections 2 to 5 shall apply in relation thereto as they apply
in a case where a dispute arises between the bailor and the bailee
before the giving of the notice of the bailee's intention to sell the
goods.
Originally 42 of 1969. 21 of 1970. Short title. Right of bailees to sell goods accepted for repair or other treatment but not redelivered. 1952 c. 43, s. 1. Notices. 1952 c. 43, s. 2. (Cap. 1.) Procedure after sale. 1952 c. 43, s. 3. Supplemental provisions 1952 c. 43, s. 4. Special provisions applicable to certain cases of goods accepted before the commencement of this Ordinance. 1952 c. 43, s. 5.

Originally 42 of 1969. 21 of 1970. Short title. Right of bailees to sell goods accepted for repair or other treatment but not redelivered. 1952 c. 43, s. 1. Notices. 1952 c. 43, s. 2. (Cap. 1.) Procedure after sale. 1952 c. 43, s. 3. Supplemental provisions 1952 c. 43, s. 4. Special provisions applicable to certain cases of goods accepted before the commencement of this Ordinance. 1952 c. 43, s. 5.

https://oelawhk.lib.hku.hk/items/show/3138

1964

v19

294

8