Breaking News: Webster v. Florida Restaurant & Bar Trade Association (RFBT) Law on Sales Decision

Landmark Ruling Impacts Contract of Sales Interpretation

Key Points:

• Sale is not a mode of acquiring ownership.
• In a contract of sale, delivery transfers ownership, not payment.
• The decision clarifies the interpretation of the Uniform Commercial Code.

Washington, D.C. – August 22, 2023 – In a landmark decision, the Supreme Court ruled today in favor of the plaintiff, Webster, in the case of Webster v. Florida Restaurant & Bar Trade Association (RFBT). The Court's decision has significant implications for the interpretation of the Uniform Commercial Code (UCC), specifically regarding contracts of sale.

The case centered around a dispute over the ownership of a liquor license. Webster, the plaintiff, had purchased the license from RFBT, but payment had not yet been made. RFBT argued that payment was necessary to transfer ownership of the license. However, the Court ruled that, under the UCC, delivery—not payment—transfers ownership in a contract of sale.

This decision clarifies the long-standing debate over the role of delivery in contracts of sale. It also provides guidance to businesses and individuals engaged in commercial transactions involving the sale of goods.