Transfer of Ownership

Rules of Transfer of ownership of ascertained/ specific goods

If goods are in deliverable state

 Ownership is transferred immediately at the time of contract

If goods are not in deliverable state

 Ownership can’t be transferred until goods are not put in deliverable state by seller

If goods are in deliverable state but price not determined

 Ownership can’t be transferred until goods are weighed or measured for price
determination
Rules of Transfer of ownership of unascertained goods

Goods need to be ascertained

 Ownership can not be transferred until both parties know which specific goods to be delivered

Appropriation of goods unconditionally : Conditions must be satisfied….

 Goods of the description mentioned in contract must be produced
 Must be in deliverable state
 Seller delivers the goods to buyer or a carrier & does not reserve the right of disposal
 Consent by buyer and seller- express or implied
Rules of Transfer of ownership of goods sent on approval

Buyer has the option either to accept the goods or to return the goods

Ownership is transferred when,

 Buyer gave his approval by communicating with seller
 Buyer acts of adopting goods
 When buyer fails to return the goods on the expiry of fixed or reasonable time
 Passing of Risk

 General Rule : Risk passes with ownerships

 Possession of goods is immaterial for risk
 Delayed delivery due to fault of any party, he will be liable
 Risk is based upon custom or usage of trade
 Transfer of Title by Non-owners

Sales by Estoppel
 Actual owner does not show any objection
 Buyer acted in good faith

Sales by Mercantile agent

 Possession of goods with consent of principal
 Acting in ordinary course of business
 Buyer acted in good faith
 No notice of no authority to sell given by principal
 Transfer of Title by Non-owners Cont.…..

Sale by joint owner

 Sole possession of goods with other joint owners consent
 Buyer acted in good faith
 No notice of no authority to sell

Sale by person in possession of goods under voidable contract

 Possession of goods under voidable contract by other party
 Goods sold before contract is cancelled by cheated party
 Buyer acted in good faith
 Transfer of Title by Non-owners Cont.…..

Exceptions under other acts/ provisions

 Sale of goods/ property by official receiver or liquidator of an insolvent
person
 Finder of goods
 Sale by pawnee under pledge