TRANSFER OF

PROPERTY

Ananta Sahu (Assistant Professor)

 TRANSFER OF PROPERTY
 Section 18-25
 What does ‘property of goods’ mean?
When does the property in the goods pass from
the seller to the buyers?
 When does the property pass from seller to the
buyer?
In a sale of goods, the property in them is
transferred to the buyer at such times as the parties
to the contract intend to be transferred.
 Rules as Regards Ascertaining
Intention (sec.20-24)
 Specifiedgoods in deliverable state(sec.20)
Goods are said to be in a deliverable state when
they are in such state that the buyers would
under the contract be found to take delivery of
them.
 Specific goods not in a deliverable
state (Sec.21)
Something has to be done by the seller to put
them in a deliverable state, property passes
only when such thing is done, and the buyer
has notice thereof.
Where there is a contract for the sale of specific
goods in a deliverable state but seller is bound to
weigh, test or do some other thing with
reference to them, for ascertaining the price, the
property does not pass till such act or thing is
done and the buyer has notice of it.(sec.22)
 Unascertained or future goods
(sec.23)
There is a contract for the sale of unascertained
goods, property in the goods in not transferred to
the buyer unless and until the goods are
ascertained.(sec18)
Sale “On Approval” or Sale or Return” basis
Where goods are delivered to the buyer ‘on
approval’ or on ‘Sale or return’ or similar terms,
the property passes to the buyer:
 Transfer of title by Non-owners
(sec.27-30)
General rules as to transfer of title
(sec27)
The general rule is that only the owner of goods
can transfer a good title. No one can give better
title than he himself has
 Expectation of the rule
 Sale by mercantile agent.(sec.27)
It as an agent having in the customary course of business as
such agent authority either to sell goods for the purpose of sale,
or to buy goods, or to raise money on the security of goods.

 Sale by a joint-owner.(sec.28)
Several joint owners of goods has the sole
possession thereof, with the consent of the others,
any purchaser from such person, for value without
notice at the time, of the seller’s want of authority
to sell, acquire a good title thereof against the other
joint owners.
Sale by a person in possession
under a voidable contract.(sec.29)

A person who has obtained possession of

goods under a contract which is voidable
on the ground of fraud, misrepresentation,
coercion, or undue influence, can convey a
good title, provided the sale takes place
before the voidable contract is avoided.
Sale by a seller in possession of goods after
sale.(sec.30)

A seller having sold goods, continues in possession

thereof or title to the goods, the transfer by such
person or by a mercantile agent acting for such
person, of the same, by way of sale will paas a good
title to the transferee, if such latter person has acted
in good faith and without notice of the previous sale.
Sale by buyer in possession of goods.(sec.30 (2))

A person having bought or agreed to buy

obtains, with the consent of the seller,
possession of the goods or of the documents
of title to the goods. The delivery of such
person, of the goods or documents, pledge
or other disposition thereof will be valid
and effective, if the person receiving the
same, acted bonafide and without notice of
the seller’s lien, if any.
An unpaid of goods who has exercised his right
Sale by an unpaid seller.(sec.54 (3))

of the lien or stoppage in transit can, even

though the ownership in them has passed to the
buyer, resell the goods and convey a valid to
another buyer, though no notice of re-seller has
been given to the original buyer.