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Purchase contract is performed and title passes at least when goods are delivered
Abstract:
The hospital received a quotation from a supplier offering to provide an item of biomedical equipment at a stated price. The hospital issued a purchase order providing delivery instructions. The equipment was delivered to the hospital, properly received, and put into service. A month later the supplier's representative came to the hospital and asked that the materials manager sign a sales order report covering the equipment. The supplier's representative explained that the equipment was from demonstrator stock and the only way it could be replaced was for the hospital to sign this form. When the materials manager refused to sign, the supplier's representative threatened to remove the equipment contending that title hadn't passed to the hospital. Later the materials manager did sign the sales order report, all the while contending that the representative had no legal right to remove the equipment. In this dialogue, Dr. Decker considers the legal issues involved in this transaction.