Also known as: special properties · specialty property
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An interest in goods that a buyer acquires upon their identification to a contract for sale. The interest arises before title passes and supports limited remedies such as replevin when the seller becomes insolvent or fails to deliver.
An interest in goods that a buyer acquires upon their identification to a contract for sale. The interest arises before title passes and supports limited remedies such as replevin when the seller becomes insolvent or fails to deliver.
Select any source to read its text and confirm it supports the definition.
The limited possessory interest held by a bailee in bailed chattels. It consists of the right to present possession and supports an action in trover even though the bailor retains general title and the right to future possession.
Select any source to read its text and confirm it supports the definition.
The limited possessory interest held by a bailee in bailed chattels. It consists of the right to present possession and supports an action in trover even though the bailor retains general title and the right to future possession.
Each sense below has its own examples, sources, and questions.
Sierra Solutions contracted to buy custom circuit boards from Spectrum Financial and prepaid half the price. Spectrum segregated and labeled the boards with Sierra's order number. When Spectrum later refused delivery, Sierra sued to recover the boards themselves. Sierra's special property interest vested on identification and supported the replevin claim even though title had not yet passed.
No. The UCC definition of security interest expressly excludes the special property interest that arises on identification of goods to a sales contract. A buyer may separately obtain a security interest by complying with Article 9, but the identification interest itself is distinct.
Supporting sources
For goods bought for personal, family, or household purposes, the right vests upon identification even if the seller has not repudiated or failed to deliver. In other cases the buyer must also show inability to cover or that the goods were shipped under reservation.
Supporting sources
Yes. Identification of existing goods to the contract creates the special property interest even though title has not yet passed and even if the goods are nonconforming.
Supporting sources
Samuel Soto left his antique watch with Serena Soto for cleaning. While the watch was in her shop, Santiago Sanchez took it. Serena brought a trover action against Santiago. Her special property as bailee gave her a sufficient possessory interest to maintain the suit even though Samuel retained general title.
The bailee holds only the right to present possession. The bailor retains title together with the right to future possession. Both interests are sufficient to support an action in trover, but only one judgment may be obtained between them.
Supporting sources
…to take possession of the books and records; or otherwise, it could inspect the records at any time; and it was given a “special property interest” in such records. Financial statements were required to be submitted by Universal “at least semi-annually”; and two partners of Unico were to be paid one-quarter of one per cent…