Unit 3 Transfer of ownership and delivery of goods

• Passing of Property

  • Stages
  • Passing of Delivery
  • Passing of goods
• Passing of Property

  Is Passing of ownership
• If the buyer has not sold the property, it has passed to the buyer
• Rules regarding transfer of property in goods

  • Identification of goods
  • Intention of parties
• Identification of goods

  Goods must be ascertained in order to pass property to the buyer
• Intention of parties

  Property in goods is transferred when parties intend it to be transferred
• Ascertaining of intention

  • Basis of contract
  • Conduct of parties
  • Circumstances of the case
• Primary rules for determination of passing of property

  • Passing of property in case of specific goods
  • Ascertainment of intention
• Passing of property in specific goods

  Depends on the circumstances of the parties
• Stages of passing of property

  1. Specific goods in deliverable state

  2. Specific goods to be delivered when payment is made

  3. Specific goods when seller has done something to ascertain
• Property does not pass until such thing is done and buyer has notice
• Specific goods in deliverable state


  • Seller has to do something to ascertain the price
• In a contract for sale of specific goods, seller is bound to weigh, measure, test, or do something for purpose of ascertaining the property
• Unascertained goods

  • No property is transferred unless goods are ascertained
• Conditions for sale of unascertained goods

  • Goods must match with description
  • Goods must be in deliverable state
  • Unconditionally appropriated
• Seller may reserve the right of disposal until certain conditions are fulfilled, like payment of price
• Delivery to the carrier

  • Seller delivers the goods to the carrier for the purpose of transmission
• Goods sent on approval or "Sale or Return" are retained without giving notice of rejection
• Reservation of sight to disposal

  Seller may reserve the right until certain conditions are fulfilled
• Until the property therein is transferred to the buyer, the goods remain at the seller's risk
• If delivery is delayed by the seller or the buyer, the risk of the goods is on the party at fault
• Transfer of title by non-owners

  Goods are sold where the person who does not have authority does not acquire good title
• Nemo dat quod non habet


  No one can give what they do not have
• Performance of contract of sale

  Meaning of delivery is the voluntary transfer of possession from one person to another
• Types of delivery

  • Actual delivery
  • Symbolic delivery
  • Constructive delivery
• Acceptance is deemed to take place when the buyer intimates to the seller that he has accepted the goods
• Acceptance occurs when the buyer retains the goods after a reasonable time without intimating to the seller that he has rejected them