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A notice of intention to sell goods under the Torts (Interference with Goods) Act 1977 must give at least three months’ notice ‘if any amount is payable in respect of the goods by the bailor to the bailee, and became due before giving of the notice’ (Sch 1, para 6(3)). In what situations is this likely to apply?
For the three-month notice period to apply, there must have been an amount payable in respect of the goods that was incurred before the giving of the notice. This implies that there must have been some form of prior agreement between the bailor and the bailee by which, for example, the bailor agreed to be liable for the bailee’s costs of storing the bailor’s goods if they were to become the bailee of them, which existed prior to any service of a notice of intention to sell.
For example, this could occur
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