Passing of property in goods
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This document discusses when property in goods passes from the seller to the buyer. It outlines several key rules and reasons regarding the passing of property, including: 1. Property passes when the goods are specified, ascertained, appropriated, or delivered. Property may also pass when the risk transfers according to the agreement or custom, even if separated from the property. 2. Determining when property passes is important for deciding who bears the loss if goods are damaged or who is responsible in the event of insolvency. 3. The rules regarding passing of property depend on whether the goods are specific, ascertained, future goods, or if the seller reserves the right of disposal. Risk typically passes with
Passing of property in goods
- 1. PASSING OF PROPERTY IN GOODS
- 2. • Property in goods means ownership of goods. • The ownership of goods is different from possession of goods. • The Possession of goods refers to custody of goods • When does the property in the goods pass from the seller to buyer its called passing of property in goods
- 3. Reasons 1. If the goods are lost or demaged, who will bear the loss.. 2. In case of damage to the goods by third parties. 3. In the event of insolvency of either seller or buyer.
- 4. Rules regarding passing of property in goods from the seller to buyer. • Specification or ascertained goods 1. specific goods in a deliverable state. 2. specific goods not in a deliverable state. • Unascertained or future goods. • Unconditional appropriation. • Mode of appropriation. • Seller reserving the right of disposal 1. sale on ‘approval’ or sale on ‘return’. 2. sale for cash only or return.
- 5. Risk prima passes with property • When delivery has been delayed through the fault of either buyer or seller, the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault. • Also, risk and property may be separated by a trade custom. • Risk and property may be separated by the agreement of the parties. • Risk and property may be separated by term of the contract.