Question
Jill is in the process of selling her handbag business and the freehold building that she operates from in the city. The person buying the
Jill is in the process of selling her handbag business and the freehold building that she operates from in the city. The person buying the business and the building intends to continue with operating the handbag business. The shop is very well decorated and it contains many items that are personal to Jill. She wants to know if she can take the following items with her before she hands over the keys to the
shop:
- A special counter at the back of the shop which is made of rosewood with pearl inlaid
- designs. The counter is fixed to the floor by four large bolts. If the counter is removed it will leave four holes in the floor;
- A painting of her mother designing hand bags that was painted by a famous artist and is worth $50,000. The painting is attached to the wall by a picture hook;
- A statue of a half dragon and half lion made from solid silver that has been secured by a large screw to a special stand that is attached to the floor by even larger screws so that it cannot be stolen. The statue is valued at $150,000;
- Special silk curtains that were made specially for the front windows of the shop so that handbags can be displayed in the best light possible;
- A machine that repairs the leather in handbags that have been damaged. The machine is very heavy and is bolted to the concrete floor by 4 very large bolts.
a. Explain the difference between a fixture and a chattel and the tests employed to determine whether an item is a chattel or a fixture.
b. Using those tests, which you have identified in (a), explain whether each of the items listed above would be a fixture or a chattel.
c. Would your answer be different if the statue was not fixed by screws to the stand and floor? Would your answer differ if the painting was screwed to the wall?
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