VIII. — 2:305 Transfer of goods forming part of a bulk

For the purposes of this Chapter, ‘bulk’ means a mass or mixture of fungible goods which is identified as contained in a defined space or area.

If the transfer of a specified quantity of an identified bulk fails to take effect because the goods have not yet been identified in the sense of VIII. — 2:101 (Requirements for the transfer of ownership in general) paragraph (3), the transferee acquires co-ownership in the bulk.

The undivided share of the transferee in the bulk at any time is such share as the quantity of goods to which the transferee is entitled out of the bulk as against the transferor bears to the quantity of the goods in the bulk at that time.

Where the sum of the quantities to which the transferees are entitled as against the transferor and, if relevant, of the quantity of the transferor exceeds the total quantity contained in the bulk because the bulk has diminished, the diminution of the bulk is first attributed to the transferor, before being attributed to the transferees in proportion to their individual shares.

Where the transferor purports to transfer more than the total quantity contained in the bulk, the quantity in excess of the total quantity of the bulk to which a transferee is entitled as against the transferor is reflected in the transferee's undivided share in the bulk only if the transferee, acquiring for value, neither knew nor could reasonably be expected to know of this excess. Where, as a result of such purported transfer of a quantity in excess of the bulk to a transferee in good faith and for value, the sum of the quantities to which the transferees are entitled as against the transferor exceeds the total quantity contained in the bulk, the lack of quantity is attributed to the transferees in proportion to their individual shares.