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Business Law

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Transfer of property

The transfer of property in the goods from the

seller to the buyer is the most important element incontracts for the sale of goods. Property here means,ownership or title of the goods and there must be anabsolute transfer or ownership in a contract of sale ofgoods.

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Rules regarding transfer of property underthe following two heads

A. Transfer of property in specific orascertained goods

where there is a contact for the sale ofspecific or ascertained goods the property inthem is transferred to the buyer at such time

as the parties to the contract intend it to betransferred.

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Where there is an unconditional

contract for the sale of specific goods in adeliverable state, the property in the goodspasses to the buyer as soon as the contract ismade ,and it is immaterial whether the time

of payment.

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Where there is a contract for the saleof specific goods and the seller is bound to

do something to the goods for the purpose ofputting them into a deliverable state, theproperty does not pass until such thing isdone and the buyer has notice thereof.

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Where there is a contract for the sale ofspecific goods in a deliverable state ,but the

seller is bound to weight ,measure, test or dosome other act with reference to the goodsfor the purpose of ascertaining the price.

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When goods are deliveredto the buyer on approval or on sale

or return; or on other similar terms,the property therein passes to thebuyer.

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Where goods contacted to besold are not ascertained or where they are

future goods, the property in goods does notpass to the buyer unless and until the goodsare ascertained or unconditionallyappropriated to the contract so to bring them

in a deliverable state.

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where goods are sold by a person who is notthe owner thereof and who does not sell themunder the authority or with the consent of theowner, the buyer acquires no better title to

the goods than the seller had.(sec.27)

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If the property, either movable or immovablebelongs to one or more persons, they arecalled joint owners.

The buyer will get a valid title over the goods.

Conditions(sec 28)a. The co-owner must be in the sole

possession of the goods.b. The possession must be with the consent of

another or other co-owner.c. The buyer should purchase the goods for

consideration.

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1. To deliver the goods in accordance with theterms of the contract of sale. (sec.31)

2. As delivery and payment are concurrentconditions.

3. If an agent is authorized to take delivery, thenthe delivery should made to the agent.

4. Seller deliver the goods with in a reasonabletime.

5. The quality and quantity of the goods shouldbe according to the contract.

6. The seller deliver the goods at specific place, ifit is stated.

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1. Right to realize the price of the goodsmentioned in a contract of sale

2. If the goods are sold on credit ,he has aright to get the price.

3. If the buyer fails to pay the amount, theseller has a right to take back the goods.

4. The seller has a right to file a suit, if the

buyer fails to pay the price of the goodswith in the agreed time.

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1. Delivery of the goods as per the contract.2. Right to examine the goods.

3. Right against the seller for breach of the

contract.4. If the delivered goods are defective ,the

buyer has a right to reject the goods.

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1. To accept the goods and pay for them inexchange for possession.

2. If the buyer wrongfully refuses to acceptdelivery ,he must pay compensation to theseller.

3. To demand delivery at a reasonable time.

4. To intimate seller where he rejects the

goods.

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1. Rights of an unpaid seller against the goodsAn unpaid seller has the following rights

for realizing the price of the good.

A. Right of lien (sec.47 to 49)

Right to retain possession of goods untilpayment of the price.

i. Where the goods have not been sold on thecredit.

ii. Sold on credit ,but the time of credit period hasexpired.

iii. Where becomes insolvent

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B. Right of stoppage in transit (sec50 to 52)

I. When the buyer becomes insolventII. When the goods are in transit

C.Right to resale (sec.54)

I. goods are of a perishable nature.

II. Unpaid seller give notice of his intention tosell.

III. Buyer make default.

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Suit for price

Suit for damage

Suit for repudiation

Suit for interest or special damage

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