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]
(Format changes—E.R. 4 of 2022)
This Ordinance may be cited as the Disposal of Uncollected Goods Ordinance.
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.
Where goods accepted as aforesaid are ready for redelivery but the bailor fails both—
to pay or tender to the bailee his charges in relation to the goods; and
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.
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—
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;
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 requirements of subsection (7);
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.
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.
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)—
stating that unless, within 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
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.
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.
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—
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;
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.
[cf. 1952 c. 43 s. 1 U.K.]
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.
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.
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—
by delivering it to the bailor; (Amended E.R. 4 of 2022)
by leaving it at his proper address; or
by post.
For the purposes of this section, and of section 8 of the Interpretation and General Clauses Ordinance (Cap. 1), 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.
[cf. 1952 c. 43 s. 2 U.K.]
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.
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 sufficient description of the goods;
the method, date and place of the sale;
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;
the amount of the gross proceeds of the sale; and
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.
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 at level 1 and to imprisonment for 3 months. (Amended 21 of 1970 s. 35; E.R. 4 of 2022)
[cf. 1952 c. 43 s. 3 U.K.]
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.
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 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;
any costs of or in connexion with the sale; and
the cost, if any, of insuring the goods.
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.
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.
[cf. 1952 c. 43 s. 4 U.K.]
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—
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);
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 commencement of this Ordinance.
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.
Where goods are sold by virtue of the fact that subsections (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—
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 subsection (1)(a) was published;
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).
A notice under subsection (1)(a) in relation to any goods must contain—
a sufficient description of the class to which the goods belong;
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 corporation, 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.
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 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.
[cf. 1952 c. 43 s. 5 U.K.]