TRANSFER OF PROPERTY IN GOODS AS BETWEEN SELLER AND BUYER & RISK The property in the goods is defined to be transferred from the seller to the buyer when the latter acquires the proprietary rights over the goods and the obligations linked thereto. 'Property in Goods' which means the ownership of goods, is different from possession of goods which means the physical custody or control of the goods. Otherwise , a person may be in possession the goods passes to the buyer because of the consequences flowing which a goods remain at the seller’s risk until the property therein is transferred to the buyer, the goods are at the buyer’s risk irrespective of whether delivery has been made. It is related with the section 26 in Sales Of Good Act. But sometimes the buyer cannot transfer title to another person whether by way of sale or gift unless he has title As a general rules that, the title passes when the parties to a contract of sale intend that it should pass. So, there are some condition or specific rules that can apply. 1.1
Firstly, in section 18 of Sale Of Goods Act is the good must be ascertained. This section reads as follows: Where there is a contract for the sale of unascertained goods means that goods defined by description only and not identified until after the contract is made and no property in the goods is transferred to the buyer unless and until the goods are ascertained. Therefore, if a contract to buy a new car which form part of a larger consignment, so no title passes until the seller has ascertained the good to be sold by setting aside a particular car for the purpose of the sale. 1.2
Secondly in section 19 allows the property passes when intended to pass3. Its can makes a effect of the contact between seller and buyer. This section provides : (1)
Where there is a contract for the sale of specific or ascertained goods the property in them is transferred to the buyer at such times as the parties to the contract intend it to be transferred. (2)
For the purpose of ascertaining the intention of the parties regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case. (3)
Unless a different intention appears the rules contained in section 20 to section 24 provides 3 rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer. These rules are only presumptions and may be varied or overridden by the contractual parties. The moment the property in goods passes, the seller ceases to be their owner and the buyer acquires the ownership. The buyer can exercise the proprietary rights over the goods. For example, the buyer may sue the seller for non-delivery of the goods or when the seller has resold the goods and more.
Thirdly, unless a different intention appears, the following are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer. In the section 20 that: The first of these rules provides that 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 the price or the time of delivery of the goods, or both is postponed. It is truth that the Act treats the passing of property as a matter distinct from the rights to payment and to delivery. For example is a person who agrees to buy a particular book on credit. On the sales, the ownership immediately happened when a book passes through payment is postponed. The deliverable state when a goods are in the state that the buyer would under the contract be bound to take delivery of them’ which in section 2 Sale of Goods Act. In Underwood Ltd vs. Burgh Castle Brick and Cement Syndicate(1922) 1 KB 343, there was a contract for the sale of a condensing engine to be delivered free on rail in London. At the time, the...
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