Custom Search

Translate

Tuesday, 16 August 2011

Discuss the various rules regarding the transfer of property from seller to buyer and in case of contract for the sales of goods

Transfer of Property :-

Transfer of property means transfer of goods ownership. While transfer of possession of goods refers to the custody of goods.

i. The ownership of the goods may pass to the buyer but possession may remain with the seller.

ii. In other case possession may pass to the buyer but ownership remain with the seller.


RULES OF TRANSFER :-
Following are the important rules regarding the transfer of property :


1. Transfer of Specific Property :-
In this case the parties may intend to pass the ownership at once on the delivery of goods or at the time of payment. Parties intention can be judged from the terms of the contract and then conduct. If the parties intention cannot be judged then following rules can be applied.


i. Delivered State :- When goods are in deliverable state property in goods passes to the buyer as soon as contract is made.


ii. Put in To a Deliverable State :- Put the goods into a deliverable state means doing to put the goods into a final shape.

Example :- Furniture is ready and seller is polishing it to give a final shape for delivery, it is called specific goods to be put in a deliverable state.

In case of sale contract the ownership of goods does not pass to the buyer until the seller has to put them in final stage.


iii. Delivery on Buyers Approval :- The property passes to the buyer on his approved or on a sale or return or such type of other terms.

Example :- Mr. Shafi delivered a cow to Mr. Bux on the terms of sale or return within one month. The cow died with in two days with out any fault of Mr. Bux. Mr. Shafi will bear the loss as the cow was still his property.


iv. Goods Do Not Pass Before Ascertain Price :- The property does not pass until the price is not declared according the weights and measures.


2. Transfer of Property Of Future Goods :-
It does not pass to the buyer unless and until the goods are ascertained or unconditionally appropriated to the contract to bring then to deliverable state. Either by the seller with the permission of the buyer or by the buyer with the permission of the seller.

0 comments:

Post a Comment

Google+ Followers

Best Song of the Year Baar Baar by Fysul Mirza

  © Blogger template Blue Surfing by Trade Cycle 2014

Back to TOP