PPT - Transfer of Ownership, Sale of Goods Act - 1930 | Business Laws for CA Foundation PDF Download

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CPT Section B Mercantile Law Unit 3 
 
 
 
Dr. Anju Gupta 
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CPT Section B Mercantile Law Unit 3 
 
 
 
Dr. Anju Gupta 
Page 3


 
CPT Section B Mercantile Law Unit 3 
 
 
 
Dr. Anju Gupta 
Passing or transfer of property constitutes the most 
important element and factor to decide legal rights 
and liabilities of sellers and buyers. Passing of 
property implies passing of ownership. If the property 
has passed to the buyer, the risk in the goods sold is 
that of buyer and not of seller, though the goods may 
still be in the seller’s possession. 
Page 4


 
CPT Section B Mercantile Law Unit 3 
 
 
 
Dr. Anju Gupta 
Passing or transfer of property constitutes the most 
important element and factor to decide legal rights 
and liabilities of sellers and buyers. Passing of 
property implies passing of ownership. If the property 
has passed to the buyer, the risk in the goods sold is 
that of buyer and not of seller, though the goods may 
still be in the seller’s possession. 
PASSING 
OF 
PROPERTY 
PASSING OF 
SPECIFIC 
OR 
ASCERTAIN
ED GOODS 
PASSING OF 
UNASCERTA
INED 
GOODS 
GOODS 
SENT ON 
APPROVAL 
OR “ON 
SALES OR 
RETURN” 
TRANSFER 
OF 
PROPERTY IN 
CASE OF 
RESERVATIO
N OF RIGHT 
TO DISPOSAL 
Page 5


 
CPT Section B Mercantile Law Unit 3 
 
 
 
Dr. Anju Gupta 
Passing or transfer of property constitutes the most 
important element and factor to decide legal rights 
and liabilities of sellers and buyers. Passing of 
property implies passing of ownership. If the property 
has passed to the buyer, the risk in the goods sold is 
that of buyer and not of seller, though the goods may 
still be in the seller’s possession. 
PASSING 
OF 
PROPERTY 
PASSING OF 
SPECIFIC 
OR 
ASCERTAIN
ED GOODS 
PASSING OF 
UNASCERTA
INED 
GOODS 
GOODS 
SENT ON 
APPROVAL 
OR “ON 
SALES OR 
RETURN” 
TRANSFER 
OF 
PROPERTY IN 
CASE OF 
RESERVATIO
N OF RIGHT 
TO DISPOSAL 
A. Passing of property in case of  Specific or Ascertained Goods 
 
In a sale of specific or ascertained goods the property passes to the buyer at the time 
when the parties intend it to pass. The intention must be gathered from the terms of the 
contract, the conduct of the parties and the circumstances of the case (Section 19) 
 
Unless a different intention appears the following rules are applicable for 
ascertaining the intention of the parties as to the time at which the property in the 
goods passes to the buyer: