Securing Proprietary Rights for Buyers of Unascertained Fungible Goods in a Bulk in Malaysia

Abstract

The research aims to ascertain the most effective methods to protect the rights of buyers of unascertained fungible goods who have paid under a contract of sale subject to the Malaysian Sale of Goods Act 1957. The research method is doctrinal. The findings reveal that in the event the seller becomes insolvent, the buyer as unsecured creditors would need to compete with the other creditors for the price of the goods. The trust device and the adoption of section 20A and 20B of the English Sale of Goods Act 1979 could provide adequate protection by conferring proprietary rights to buyers.