BILLS OF SALE

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Definition

A bill of sale is a legal document that transfers ownership of personal property from one person to another. It is a formal way of documenting the sale of an item, and it can be used to prove ownership in the event of a dispute.



Bills of Sale - Definition - Chattel - Personal chattel - House

In the case of Chew Seok Tee v Lim Ker & Anor [1967] 1 MLJ 236, the High Court of Alor Star held that a bill of sale can only be used to transfer ownership of personal chattels, and not real property such as houses. In this case, the plaintiff, Chew Seok Tee, had purchased a house from the defendants, Lim Ker and Lim Ah Hong. The defendants had executed a bill of sale in favor of the plaintiff, but the High Court held that the bill of sale was invalid because it purported to transfer ownership of the house, which is a real property.





Kartar Singh v Pappa [1954] MLJ 193, High Court, Ipoh

In the case of Kartar Singh v Pappa [1954] MLJ 193, the High Court of Ipoh held that a bill of sale is not required for the sale of a chattel. In this case, the plaintiff, Kartar Singh, had purchased a motorcar from the defendant, Pappa. The defendant had not executed a bill of sale in favor of the plaintiff, but the High Court held that the sale was valid even without a bill of sale.





Bills of Sale - Definition - Hire purchase agreement - Whether bill of sale - Plaintiff issued letter of offer for hire purchase facility to first defendant prior to payment of deposit by first defendant to dealer in respect of excavator - Whether plaintiff was a stranger to transaction between first defendant and dealer - Whether first defendant had been vested with ownership or title of excavator - Whether agreement between plaintiff and first defendant was a mere device to cloak a loan - Whether agreement executed between plaintiff and first defendant was a bill of sale under the Bills of Sale Act 1950

In the case of MBf Leasing Sdn Bhd v Cheok Lai Chen [2003] 6 MLJ 330, the High Court of Malaya held that a hire purchase agreement can be a bill of sale under the Bills of Sale Act 1950. In this case, the plaintiff, MBf Leasing Sdn Bhd, had entered into a hire purchase agreement with the defendant, Cheok Lai Chen, for the purchase of an excavator. The plaintiff had issued a letter of offer for the hire purchase facility to the defendant prior to the payment of the deposit by the defendant to the dealer. The High Court held that the plaintiff was not a stranger to the transaction between the defendant and the dealer, and that the defendant had been vested with ownership or title of the excavator. The High Court also held that the agreement between the plaintiff and the defendant was not a mere device to cloak a loan, and that the agreement executed between the plaintiff and the defendant was a bill of sale under the Bills of Sale Act 1950.



Bills of Sale - Definition - Hire-purchase agreement - Whether bill of sale

In the case of Kan Yeow Wing v Keng Soon Motor Finance Co [1962] MLJ 391, the High Court of Kuala Lumpur held that a hire purchase agreement can be a bill of sale. In this case, the plaintiff, Kan Yeow Wing, had entered into a hire purchase agreement with the defendant, Keng Soon Motor Finance Co, for the purchase of a motorcar. The High Court held that the agreement between the plaintiff and the defendant was a bill of sale because it purported to transfer ownership of the motorcar to the plaintiff subject to a condition that the plaintiff would pay the purchase price in installments.



Tan Tien Choy v Kiaw Aik Hang Co Ltd [1966] 1 MLJ 102, Federal Court, Singapore

In the case of Tan Tien Choy v Kiaw Aik Hang Co Ltd [1966] 1 MLJ 102, the Federal Court of Singapore held that a bill of sale can be used to transfer ownership of a motorcar. In this case, the plaintiff, Tan Tien Choy, had purchased a motorcar from the defendant, Kiaw Aik Hang Co Ltd. The plaintiff had executed a bill of sale in favor of the defendant, and the defendant had registered the motorcar in its name. The Federal Court held that the bill of sale was valid and that the defendant was the rightful owner of the motorcar.



Bills of Sale - Definition - Transfer - Whether bill of sale

In the case of Ismail bin Haji Embong v Lau Kong Han [1970] 2 MLJ 213, the High Court of Kuala Trengganu held that a bill of sale can be used to transfer ownership of a motorcar even if the motorcar is already registered in the name of another person. In this case, the plaintiff, Ismail bin Haji Embong, had purchased a motorcar from the defendant, Lau Kong Han. The plaintiff had executed a bill of sale in favor of the defendant, but the motorcar was already registered in the name of the defendant's wife. The High Court held that the bill of sale was valid and that the plaintiff was the rightful owner of the motorcar.





The cases discussed above show that a bill of sale is a legal document that can be used to transfer ownership of personal property. However, it is important to note that the requirements for a valid bill of sale may vary from jurisdiction to jurisdiction. It is therefore important to consult with an attorney to ensure that a bill of sale is properly drafted and executed.