Transfer of Property in Goods in Sale of Goods Act 1930

The transfer of property in goods is an important aspect of a contract of sale. The Sale of Goods Act, 1930 contains provisions that govern the transfer of property in goods. Here are the key points to note:

Definition: “Property in Goods” means the ownership of goods, and it includes the general property in goods and also the special property in goods.

General property: The general property in goods refers to the ownership of the goods. In a contract of sale, the general property in goods passes from the seller to the buyer when the parties intend it to pass.

Special property: The special property in goods refers to a particular interest in the goods, such as the right to possess or use the goods. A seller can transfer the special property in goods even if they do not have the general property in the goods.

Rules for transfer of property:

The Act provides for different rules for the transfer of property in specific situations, including:

1. Sale of specific goods: In a sale of specific goods, the property in the goods passes to the buyer when the parties intend it to pass.
2. Sale of unascertained goods: In a sale of unascertained goods, the property in the goods does not pass until the goods are identified and appropriated to the contract.
3. Sale on approval: In a sale on approval, the property in the goods passes to the buyer when they accept the goods or when the agreed period of approval expires.
4. Sale on return: In a sale on return, the property in the goods remains with the seller until the buyer exercises their option to purchase the goods.

Risk:

The Act also provides that the risk in the goods passes to the buyer when the property in the goods passes. The buyer becomes responsible for any loss or damage to the goods from that point onwards.