The object of Sale is:a)To pass the possession of the goods.b)To pass ...
Once a property is passed to the buyer, then the risk in the goods sold is that of the buyer and not the seller. This is true even if the goods are in the possession of the seller. Let us learn more about the passing of property in the Sale of Goods Act.
The object of Sale is:a)To pass the possession of the goods.b)To pass ...
Explanation:
Introduction to Sale:
Sale is a legal transaction in which one party, known as the seller, transfers the ownership of goods to another party, known as the buyer, in exchange for money or other valuable consideration. It is a common form of business transaction and is governed by various laws and regulations.
Object of Sale:
The object of a sale is to pass the property of the goods from the seller to the buyer. This means that the buyer becomes the legal owner of the goods, and as the owner, they have certain rights and responsibilities associated with the goods.
Passing the Possession vs Passing the Property:
1. Passing the Possession: When goods are sold, the possession of the goods is transferred from the seller to the buyer. This means that the buyer physically receives the goods and gains control over them. However, passing possession does not necessarily mean passing the property.
2. Passing the Property: Passing the property of the goods involves the transfer of ownership rights from the seller to the buyer. It means that the buyer acquires legal ownership and all associated rights, such as the right to use, sell, or dispose of the goods. The buyer also becomes responsible for any liabilities or risks associated with the goods.
Importance of Passing the Property:
Passing the property is crucial in a sale because it determines the legal rights and obligations of the parties involved. Without the transfer of property, the buyer may not have the legal authority to use or sell the goods, and the seller may still be liable for any damages or risks associated with the goods.
Conclusion:
In summary, the object of a sale is to pass the property of the goods from the seller to the buyer. While passing possession is important for physical control of the goods, passing the property is essential for legal ownership and associated rights. By understanding the distinction between passing possession and passing property, parties can ensure clarity and enforceability in their sale transactions.