Rules Relating to Transfer of

Property

Transfer in the specific / ascertained goods

Transfer in the unascertained goods
Transfer in goods sent on approval
Transfer in the goods sent or delivered when
the right of disposal is reserved

1) Section 20 Specific goods in a

deliverable state

Where there is an unconditional contract for

the sale of specific goods in a deliverable
state, the property in the goods passes to the
buyer when the contract is made, and it is
immaterial whether the time of payment of or
the time of delivery of goods, or both, is
postponed.

Section 20 Specific goods in

a deliverable state

Example
Sale of a specified number of bushels of oats, the
contents of a bin in a warehouse. The seller gives a
delivery order to the buyer, addressed to the
warehouseman, authorising delivery of the oats tio
the buyer, and asking the warehouseman to weigh
them,. The warehouseman accepts the order and
enters it in his books. The property has passed to
the buyer, as the weighing was not necessary to
identify the oats or to ascertain the price, but was
merely for the satisfaction of the buyer. Swanwik
Vs. Sothern (1839)

Section 21 Specific goods to

be put into a deliverable
Where there is a contract
for the sale of specific goods and
state

the seller is bound to do something to the goods for the

purpose of putting them into a deliverable state, the property
does not pass until such thing is done and the buyer has
notice thereof.
Example
This section may be illustrated by the following example: Sale
of the whole contents of a cistern of oil, the oil to be put into
casks by the seller and then taken away by the buyer. Some
of the casks are filled in the presence of the buyer, buy before
any are removed, or the remainder are filled, filled, fire
destroys the whole of the oil. The buyer must bear the loss of
the oil which had been put into the casks, the seller that of the
remainder .

Section 22 : Specific goods in

a deliverable state , when the
seller has to do anything
thereto in order to ascertain
: the sale of specific
Where there is a price
contract for
goods in a deliverable state, but the seller is bound
to weigh, measure, test or do some other act or
thing with reference to the goods for the purpose of
ascertaining the price, the property does not pass
until such act or thing is done and the buyer has
notice thereof.

1.

2.

2) Section 23 : Sale of
unascertained goods and
Where there isappropriation.
a contract for the sale of unascertained or

future goods by description and goods of that description

and in a deliverable state are unconditionally appropriated
to the contract assent of the buyer or by the buyer with the
assent of the seller, the property in the goods there upon
passed to the buyer. Such assent may be expressed or
implied, and may be given either before or after the
appropriation made.
Delivery to the carrier - Where in pursuance of the contract
the seller delivers the goods to the buyer or to the carrier or
other bailee (whether named by the buyer or not) for the
purpose of transmission to the buyer, and does not reserve
the right of disposal, he is deemed to have unconditionally
appropriated the goods to the contract.

1.

2.

Section 23 : Sale of
unascertained goods and
Example
appropriation
This section may be illustrated by the following example:
Sale of 20 hogsheads of sugar out sugar out of a larger
quantity. The seller fills four hogsheads which the buyer
takes away. Subsequently the seller fills sixteen more
hogsheads, and informs the buyer of this asking him to
come and take them away. The buyer promises to do
so. The property has passed to the buyer.
Mr A contracts to sell to Mr B a certain quantity of liquor
out of a big cask containing a much larger quantity. The
required quantity is not separated or bottled. The
property in the liquor does not pass to the purchaser.

3)Section 24 Goods sent on

approval or on sale or
return
When goods are delivered to the buyer on approval

or on sale or return or other similar terms, the

property therein passes to the buyer
(a) when he signifies his approval or acceptance to
the seller or does any other act adopting the
transaction:
(b) if he does not signify his approval or acceptance
to the seller but retains the goods without giving
notice of rejection, then, if a time has been fixed for
the return of the goods, on the expiration of such
time, and, if no time has been fixed, on the
expiration of a reasonable time.

4)Section 25 Transfer of
Property when Right of Disposal

isSometimes
reserved
a seller appropriates the goods to
a contract but at the same time reserves the
right of disposal of the goods until certain
conditions are fulfilled by the buyer.

PERFORMANCE OF THE CONTRACT

Section 31. Duties of the seller and buyer It shall be the duty of the seller
to deliver the goods and of the buyer to accept and pay for them, in
accordance with the terms of the contract of sale.

The general rule enunciated in this section follows from the nature of the
contract of sale, by which the property in the goods is transferred, or agreed
to be transferred, from the seller to the buyer in return for the price.

There would be breach of the duty to accept when the buyer unjustifiably
rejects the goods. Taking of delivery of the goods is an important aspect of
the duty to accept and refusal to do so will constitute rejection of the goods
and therefore , would amount to a non-acceptance of the goods. There is
however a distinction between acceptance of goods and taking delivery of
them. The buyer signifying his approval of the goods accepts them though he
may not have taken delivery of the goods. It will be noticed that the Act does
not expressly impose any duty to take delivery although it prescribes
sanctions when there is delay in taking delivery.

WHO IS AN UNPAID SELLER

A seller of goods is deemed to be an unpaid
seller:

When the whole of the price has not been

paid or tendered
When any negotiable instrument is
dishonoured

Against
the goods
Where the
property in
the goods
has passed

Rights of unpaid seller

Where the
property in
the goods has
not passed

Stoppage
in transit

Lien

Stoppage
in transit

Against
the seller
personally

With
holding
delivery

Re sale
Suit for price

Suit for
damages

Repudiation
of contract

Suit for
interest