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DISPOSITION OF

CORPOREAL
MOVEABLES.

TITLE V.

MOVEABLE REAL RIGHTS.

THE next subject for our consideration is that of deeds relating to corporeal moveables, or real rights in moveables.

The personal bond, bill, and some other writs, are only the representatives of debts; and the rights which they constitute are styled 'incorporeal,' as having in themselves no proper tangible existence. But furniture, cattle, implements, plate, jewels, cash, and other corporeal effects, and likewise ships, are moveable, equally with debts due by bill, or personal bond. And though, when corporeal effects are to be transferred, the transfer may, except in the case of ships, be best accomplished, and the property acquired, by actual delivery and possession, the transfer in all cases may, and in the case of ships must, form the subject of a regular deed of transmission.

The deed of conveyance of corporeal moveables (other than ships) is generally called a 'disposition;' because, with strict propriety, it uses the words' sell, dispone, convey, and make over,' as is done in the case of lands, not the word 'assign,' as in the case of debts or rights standing simply on obligations.

Where the subjects have not already been contained in a conveyance or other deed, in which case the forms authorised by the Transmission of Moveable Property Act of 18621 will not apply, the clauses of the deed are,-(1.) The narrative, which, as in other cases, describes the granter, the cause of granting, and generally, though not necessarily, the grantee. (2.) The dispositive clause, by which the granter dispones, etc., to the grantee the particular subject of the transaction. And here special care must be taken to identify the subject. Thus, if furniture, farm-stock, implements, or the like are conveyed, the whole must be enumerated, or referred to, as contained in an inventory which the granter will sign as relative to the deed, or in some other way clearly pointed out. (3.) The warrandice clause, which is from fact and deed. (4.) Clause of delivery, if the articles are delivered. (5.) The consent to registration for preservation and execution; and lastly, the testing-clause. On these clauses, no remark appears necessary. But, where the subjects

1 25 & 26 Vict. cap. 85.

have already been contained in a conveyance or other deed, the forms authorised by the Act of 1862 can be employed in like manner as if the subject conveyed were a debt due by personal bond.

If the articles disponed are in the hands of a third party, the dis- INTIMATION. position ought to be intimated to him. This can be done in one or other of the modes authorised by the Act of 1862, which Act can be made use of in regard to the mode of giving intimation, whether the deed intimated be in the form thereby authorised, or in any other form. Due intimation, legally proved, will complete the transfer; and what has already been said1 on the subject of intimation of assignations of debts, will be applicable to intimations of dispositions of corporeal moveables in the hands of a third party. This is brought out in the case of Eadie,2 where, however, sufficient intimation had not been given.

Where goods are in the hands of the seller, and the transfer arises DELIVERY. upon an absolute bond fide sale, the transfer will be effectual as against the seller's creditors, notwithstanding that possession shall be retained by the seller; the old rule of law requiring delivery to the purchaser being now, to that extent, qualified by the Mercantile Law Amendment Act of 1856, sects. 1, 2, & 3. Should the seller, however, make a second sale, and deliver the goods to the second purchaser, the property will pass to the second purchaser, to the exclusion of the first. Delivery, therefore, in the case of goods which the seller has in his own hands, is still necessary to divest the seller, and make the transfer complete and effectual in every respect.

POSSESSION.

The Style Book gives the form of a notarial instrument of posses- INSTRUMENT OF sion taken by the disponee under a disposition of moveables, whereof the possession is retained by the seller. But such instrument is utterly ineffectual as against third parties, and, with regard to the disponer and his heirs, the disposition is itself a complete title. Where, however, a testator conveyed his house and furniture to trustees, for behoof of his son in liferent, he always paying a specified yearly rent therefor, and to his daughters in fee, the son's creditors were found not entitled to plead that the possession enjoyed by the son rendered the furniture his property, to the effect of subjecting the same to their diligence. And, even without the intervention of trustees, where a testatrix conveyed her furniture to her unmarried niece, excluding the jus mariti of any husband whom she might marry, the creditors of the niece's husband were found to be validly excluded, although he had married without a marriage-contract, and was (with his wife) in actual possession of the furniture. In such cases, however, it lies with the objector to prove that the furniture, or other moveables claimed by the creditors, are among the articles liferented, or as to which

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CONTRACT FOR

BUILDING A

SHIP.

REGISTRATION
OF SHIPS.

MERCHANT

SHIPPING ACT, 1854.

a

the jus mariti has been excluded. And a husband cannot give his wife, after their marriage, a right of fee, preferable to the claim of his creditors, in furniture belonging to himself, and of which he retains the possession.1

We now come to the important branch of Maritime Writs.

And first we shall take the contract for building a ship, observing that the principles on which this deed is framed are not different from those applicable to the framing of the contract for building a house, or any other fabric.

The counter obligations of the parties are, on the one hand, to build a ship or vessel of a specified description; and, on the other hand, to pay a specified price for it.

The obligation to build usually bears, and ought always to bear, reference to a specification of all the particulars of material, dimensions, shape or plan, tonnage, and appurtenances: with a general provision that the ship is to be finished in all respects according to the custom applicable to similar vessels in the port or place where she is built, or some other general provision affording a rule as to all the particulars not fully detailed in the specification. The builder ought to be bound to complete the whole, and to have the vessel ready for sea, by a day certain, and a specified payment ought to be stipulated for, in name of liquidated damages (not penalty) for every day thereafter, during which the vessel shall, in the judgment or at the sight of a neutral party, mutually agreed on and named in the contract, remain unfinished.

The party for whom the ship is built will, on the other hand, become bound to pay the price, either in a slump sum, or at a certain rate per ton, or otherwise,-care being taken to make the amount of the price clearly ascertainable, if a slump sum is not specified. In general, the price will be payable by regulated instalments. The form in the Style Book suggests that the first instalment will be payable when the keel is laid; the second, if the vessel is of moderate size, when she is launched; and the third, when she is cleared at the custom-house; upon attestation by the neutral party, mutually agreed on, and named as above, that she is finished according to contract. But the instalments may be more numerous, and may have reference to other or a greater variety of stages in the ship's progress, according to circumstances. Forms of the building contract, and relative specification, will be found in the Style Book.3

A ship requires to be registered in order to have the privileges granted by law to British-built ships, or ships foreign-built, which become entitled to these privileges.-(Merchant Shipping Act of 1854, sect. 19.)* And,

1 Campbell v. Stewart, 13 June 1848, 10 D. 1280.

*Style Book (3d edition), ii. 537.

3 Ibul. 537 & 539.

4 17 & 18 Vict. cap. 104.

a See note on page 138, supra.

SHIPPING ACT.

unless so registered, the ship is not recognised as a British ship, nor MERCHANT entitled to receive from any officer of customs a clearance or transire for enabling her to proceed to sea.

In order to registration in any case, the ship, whether British or foreign built, must (sect. 36) be surveyed by a person appointed under the Act; from whom a certificate must be obtained, stating the ship's tonnage, build, and other particulars descriptive of identity, as in Form (A) annexed to the Act. A declaration of ownership must also be made by the owner, or one of the owners, if there are more than one, as in Forms (B) and (C), stating-(1.) the name of the ship; (2.) whether British or foreign built; (3.) the port of registry, being the port or place at which the ship is registered for the time being (sect. 33); (4.) how the ship is propelled; (5.) the number of the decks, and various other particulars as to the build, rigging, etc.; (6.) the measurements; (7.) the tonnage. These particulars are followed by the proper declaration, in which the owner, describing himself by his residence, states-(1.) that he is a British subject, naming his birthplace ;a (2.) his residence; (3.) that he has taken the oath of allegiance to the Queen; (4.) the time and place at which the ship was built; (5.) the name of the master; (6.) that the declarant is entitled to be registered as owner or joint-owner of the ship, or of a certain number of shares therein; and lastly, that no one is interested in the ship who is not qualified to be the owner of a ship by the above Act. And, on the occasion of the first registering, certain additional particulars are required to be instructed by evidence, as set forth in sect. 40 of the Act.b

This declaration being made to the registrar, or other person authorised by the Act (sect. 38), and evidence furnished of the additional particulars set forth in sect. 40, if the case is that of the first registry,-and assuming that the particulars set forth in the declaration, and proved in evidence, are all as the law requires, the registry takes place. This is done by the entry in the register-book, kept by the registrar, in terms of sect. 42, of (1.) the name of the ship, and of the port to which she belongs, being the port or place at which she is registered (and, by sect. 34, no change can be made in the name); (2.) the details as to tonnage, etc., comprised in the surveyor's certificate; (3.) the particulars of her origin,

a The Naturalisation Act, 1870 (33 Vict. cap. 14), which allows aliens to take, acquire, hold, and dispose of 'real and personal property of every description' in all respects as natural-born British subjects, does not qualify an alien to be owner of a British ship-sect. 14.

b See further particulars as to marking on the ship her name and port of registry, etc., required by the Merchant Shipping Act of 1871 (34 & 35 Vict. cap. 110, sect. 4), and as to marking of deck and load lines required by the Merchant Shipping Act of 1876 (39 & 40 Vict. cap. 80). By this Act (sect. 36) the name and address of the managing owner, or ship's husband, must be registered at the port of registry, under penalty.

The Merchant Shipping Act of 1871, sect. 6, makes provision for a change being made in the name of a ship with permission of the Board of Trade-see also 36 & 37 Vict. cap. 85, sect. 5, as to registration of foreign ships on their becoming British.

CERTIFICATE OF
REGISTRY.

SIXTY-FOUR
SHARES.

TRUSTS.

stated in the declaration of ownership; and (4.) the names and descriptions of her registered owners, and, if more than one, the proportions in which they are respectively interested in the ship.

The entry in the register-book being duly made, a certificate of registry is issued, as in the Form (D) annexed to the Act, containing the same particulars as those entered in the register-book as above explained, and likewise the name of the master. The certificate of registry, however, is the evidence only of the ship's right to the privileges of a British ship. It manifests the ship's nationality, and identifies the ship. But it is to be used only for the lawful navigation of the ship, and is not subject to detention by reason of any title, lien, charge, or interests whatsoever, which any person may have or claim in the ship. Accordingly, a change of the master of the ship ought to be indorsed on the certificate of registry, and such change must be reported to the customs at London, and the officers of the customs may prevent any one from acting as master who is not marked in or on the certificate of registry as the last appointed master (sect. 46).

The property in a ship must be divided into sixty-four shares, and, subject to the provisions with respect to joint-owners, or owners by transmission, contained in the Act, not more than thirty-two individuals can be registered at the same time as owners of any one ship. No person can be registered as owner of a fractional part of a share. But any number of persons, not exceeding five, may be registered as joint-owners of a ship, or share or shares therein. Joint-owners are not, however, entitled to dispose, in severalty, of any interest in a ship, or share of a ship, in respect of which they are registered (sect. 37).

No notice of any trust, express, implied, or constructive, can be entered in the register-book, or is receivable by the registrar. And, subject to any rights and powers appearing by the register-book to be vested in any other party (a mortgage, for example), the registered owner of any ship, or share therein, shall have power absolutely to dispose of such ship, or share therein, and to give effectual receipts for the price (sect. 43)."

All changes of ownership, equally with changes of master, ought to be indorsed on the certificate of registry. But, agreeably to a notice appended to Schedule (D) of the Act, the certificate is not a document of title. It does not necessarily contain notice of all changes of owner'ship, and in no case does it contain an official record of any mortgages affecting the ship.' The certificate, however, has been held to afford such prima facie evidence of title as to enable the registered owners, to whom a transfer had been recently made, to obtain recal of arrestments of the ship, used by creditors of the former owners, although it was alleged that the transfer was fraudulent and collusive.1

1 Duffus & Lawson v. Mackay, 13 Feb. 1857, 19 D. 430.b

a The intention of these provisions is explained by 25 & 26 Vict. cap. 63, sect. 3. b A decision in conformity with this case was pronounced in that of Grant v. Grant, 14 Dec. 1867, 6 Macph. 155,- Lords Deas and Ardmillan (who concurred in the

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