4 Personal Property

4 Personal Property 4.1 Transfer of personal property i) By Sale a) Choses in possession (1) outright sale The Sale of Goods ACT 1908 provides a body of law which applies to the outright transfer of goods (Chapter 8) (2) Layby Sale The Layby Sale Act 1971: - at retail - where an agreement to buy goods is made - a deposit is paid immediately - the balance is paid over time (3) by credit sale agreement Credit sate: a contract involving the sale of property or the provision of services under which payment of the whole or a part of the purchase price is deferred, and includes a lease that is to be treated as a sale. IT IS A CONSUMER CREDIT CONTRACT if: - the debtor is a natural person - the debtor enters into the contract primarily for personal, domestic, or household purposes - one or more of the following applies  interest charges are or may be payable under the contract  credit fees are or may be payable under the contract  a security interest is or may be taken under the contract - when the contract is entered into, one or more of the following applies:  the creditor, or one of the creditors, carries on a business of providing credit  the creditor, or one of the creditor, makes a practice of providing credit in the course of a business carried on by the creditor  the creditor, or one of the creditor, makes a practice of entering into credit contracts in the creditor’s own name as creditor on behalf of, or as trustee or nominee for, any other person; and  the contract results from an introduction of one party to another party by a paid adviser or broker b) Choses in action Assignment: Choses in action are not capable of being delivered or handed over. The sale is done in written form and it is usually called an assignment.

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ii) BY INTER VIVOS GIFT A gift is the transfer to property from one person to another gratuitously, with the intention that the property should not return to the donor, and is received by the donee with the 1

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intention of keeping it An oral promise to gift land is not enforceable in Court A written agreement to gift land is only enforceable if it is in deed form, that is, the written document must be signed by the donor and his or her signature must be witnessed by a person who must include his or her occupation and address To complete a gift of land, it is necessary to draw up a transfer which is signed by the donor. It will then need to be appraised by the IRD for gift duty purposes. Finally the transfer is registered at LINZ

4.2 Security interests in personal property 4.3 Leases of personal property Leasing is advantageous when: I. The money to purchase is unavailable or could be used more profitably elsewhere II. There are tax benefits III. The property is only needed for a short time IV. Technology is changing at a rapid rate and is making equipment obsolete quickly 5. Intellectual Property

Business assets and intellectual property protection interpretation

Names, brands, reputation

Business information, ideas and trade secrets

Confidentiality (p.502)

principle

Expressions and representation of ideas

Copyright (p.505) Other statutes (p.509)

Patent law (p.504)

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Trade Marks Act 2002 (p.509) Passing off (p.510) Fair Trading Act 1986 (p.512) Companies Act 1993 (p.512) Geographical Indications Act 1994 (p.512)