Reservation of Right to Disposal

The reservation of the right to disposal refers to the ability of a seller to retain ownership and control over goods until certain conditions are met. This reservation allows the seller to restrict the buyer's ability to dispose of the goods before payment or any other agreed-upon conditions are fulfilled. This concept is applicable in the context of sales contracts and is governed by the Sale of Goods Act, 1930.

Types of Goods

In order to understand which kind of goods the reservation of the right to disposal is available for, it is important to first understand the different types of goods recognized under the Sale of Goods Act:

1. Specific Goods: These are goods that are identified and agreed upon at the time of the contract. Specific goods are distinguished by their individuality and can be physically set apart from other goods. For example, a specific model of a car or a particular piece of artwork.

2. Existing Goods: Existing goods are goods that are owned or possessed by the seller at the time of the contract. These goods are already in existence and are available for immediate delivery. For example, a laptop that is currently in the possession of the seller.

3. Unascertained Goods: Unascertained goods are goods that have not been identified or agreed upon at the time of the contract. These goods are not yet in existence or are not specific enough to be distinguished from other goods. For example, a future batch of wheat that is yet to be harvested.

Availability of Reservation of Right to Disposal

The reservation of the right to disposal is available only for specific goods. This means that the seller can retain ownership and control over the specific goods until certain conditions, such as payment, are fulfilled by the buyer. The reservation of the right to disposal cannot be applied to existing goods or unascertained goods.

This distinction is important because specific goods can be easily identified and set apart from other goods, allowing the seller to exercise greater control and ownership rights. On the other hand, existing goods are already in the possession of the seller and unascertained goods have not been identified yet, making it difficult to enforce reservation of the right to disposal.

Therefore, the correct answer to the question is option 'A' - reservation of the right to disposal is available for specific goods.