TRANSFER OF

PROPERTY

THREE STAGES OF
PERFORMANCE OF CONTRACT

The transfer of property in goods

Transfer of possession of goods
The passing of risk.

PASSING OF PROPERTY RULES

.

Goods must be ascertained

Intention of parties

The property passes as per the intent of the

parties
Terms/conduct/circumstances of case
In mixed contract for storage of paddy and the
sale of same there after the paddy was delivered
by S to B for storage. B had the option to name a
particular day on which he was to buy the paddy.

Where intention cant be known,

following rules apply :

SPECIFIC

Goods

passing of property at the time of contract

Unconditional contract
sale of specific goods in a deliverable state
S sells to B a horse which is to be delivered to B the next
week. B is to pay the price on delivery. B asks his servant
to keep the horse separate from the other horses. The
horse dies before the delivery

Passing of property gets delayed beyond the date of contract

Goods not in a deliverable state
.

There was a contract for sale of machine. A part of the machine

was destroyed while being removed. Held the buyer was
entitled to refuse as it was not in a deliverable state.

when

price is to be ascertained by weighing,measuring etc.

though in deliverable state

 Unascertained

goods

Ascertainment of goods
Unilateral act of the seller
Appropriation
Intention of using the goods in contract with the mutual
consent
In

the sale of 20 hogheads of sugar out of a large quantity, 4

were filled and taken away by the buyer. The remaining 16
were subsequently filled and the buyer was informed of the
same. The buyer promised to take them away, but before he
could do so goods were lost.

Goods sent on approval or sale return the

property in such cases passes when :

The buyer signifies his approval or acceptance to

the seller

Does any act adopting the transaction

A

horse was delivered to B on the condition of sale or

return within 8 days. The horse died within 8 days. held
the loss would fall on the seller.
Goods are delivered by A to B on sale or return basis.
They are further delivered by B to C and then C to D on
similar terms. The goods are stolen while in the custody
of D.

Retain the goods without giving notice of rejection

SALE BY NON-OWNERS

no one can give

that
which one has not got

A steals an article and sells it to B, B does not become the

owner of the article.

EXCEPTIONS
Sale by a person not the owner or title by
estoppel

Where the owner by his conduct leads the buyer to

believe that the seller has the authority to sell.
A tells B within the hearing of C that he is the owner
of certain goods.

Sale by Mercantile Agent

F the owner of a car, delivered it to H, a mercantile

agent for sale at not less than $575. H sold the car to
K for $140 who bought it in good faith. F sued to
recover the car from K.

Sale by one of several joint owners

With possession.

EXCEPTIONS
Sale by a person in possession under a voidable contract

Sale by seller in possession after sale

A sells certain goods to B and promises to deliver the goods

next day. Before delivery A sells and delivers the goods to c
who buys them in good faith.

Sale by buyer in possession after having bought or

agreed to buy goods

A purchases a piano from B by fraud. A has a voidable title to

goods. Before B rescinds it, A sells the piano to C, who buy it
in good faith.

A bought some furniture on higher purchase, the ownership to

pass to him on the payment of last installment. A sold the
furniture to B before paying the last installment.

Sale by an Unpaid seller

Right of stoppage in transit