Disposal Of Uncollected Goods Ordinance


Published: 1997-06-30

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Cap 294 - DISPOSAL OF UNCOLLECTED GOODS ORDINANCE 1

Chapter: 294 DISPOSAL OF UNCOLLECTED GOODS ORDINANCE Gazette Number Version Date

Long title 30/06/1997


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]


(Originally 42 of 1969)

Section: 1 Short title 30/06/1997


This Ordinance may be cited as the Disposal of Uncollected Goods Ordinance.

Section: 2 Right of bailees to sell goods accepted for repair or other

treatment but not redelivered
30/06/1997



(1) 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.

(2) Where goods accepted as aforesaid are ready for redelivery but the bailor fails both-
(a) to pay or tender to the bailee his charges in relation to the goods; and
(b) 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.

(3) 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-

(a) 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;

(b) 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);

(c) 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.



Cap 294 - DISPOSAL OF UNCOLLECTED GOODS ORDINANCE 2

(4) 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.

(5) 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)-

(a) 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

(b) 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.

(6) 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.

(7) 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-

(a) 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;

(b) 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.]

Section: 3 Notices 30/06/1997


(1) In this Ordinance, unless the context otherwise requires, the expression "notice" (通知) means a notice in
writing in English or Chinese.

(2) 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.

(3) 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.

(4) 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-

(a) by delivering it to the bailor; or
(b) by leaving it at his proper address; or
(c) by post.

(5) 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.]




Cap 294 - DISPOSAL OF UNCOLLECTED GOODS ORDINANCE 3

Section: 4 Procedure after sale 30/06/1997


(1) 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.

(2) 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) a sufficient description of the goods;
(b) the method, date and place of the sale;
(c) 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;

(d) the amount of the gross proceeds of the sale; and
(e) 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.

(3) 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 of $1000 and to imprisonment for 3 months. (Amended 21 of 1970 s. 35)

[cf. 1952 c. 43 s. 3 U.K.]

Section: 5 Supplemental provisions 30/06/1997


(1) 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.

(2) 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) 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;

(b) any costs of or in connection with the sale; and
(c) the cost, if any, of insuring the goods.

(3) 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.

(4) 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.]

Section: 6 Special provisions applicable to certain cases of goods

accepted before the commencement of this Ordinance
30/06/1997



Expanded Cross Reference:



Cap 294 - DISPOSAL OF UNCOLLECTED GOODS ORDINANCE 4

2, 3, 4, 5



(1) 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-

(a) 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);

(b) 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.

(2) 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.

(3) 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-

(a) 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;

(b) 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).

(4) A notice under subsection (1)(a) in relation to any goods must contain-
(a) a sufficient description of the class to which the goods belong;
(b) 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

(c) 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.

(5) 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.]

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