PowerPoint Presentation

Fahad Sattar (06)

Effect of contract of salesRules with regard to transfer of property

Transfer of Title of GoodsRules with regard to sale of propertyGoods must be ascertainedProperty passes when intended to passSpecific goods to be put into a deliverable stateSpecific goods in a deliverable state subject to measurementSale of unascertained GoodsGoods sent to approval or on sale or return1 Goods must be ascertained:Goods of the contract must be ascertained.

If goods are unascertained then no property is transferred to the buyer and there is no sale of goods.2 Property passes when intended to passGoods passes to the buyer when contract is made and the goods are specific goods and are in deliverable state.

It is immaterial whether the time of payment of the price and the time of the delivery of the goods.3 Specific goods to be put into a deliverable state:If the contract is for the sale of specific goods then seller is bounded to do something to the goods according to the order for the purpose of putting into deliverable state.

And the property does not passes until such thing is done and the buyer has notice there of.4 Specific goods in a deliverable state subject to measurement:If contract is for sale of specific good then seller is bounded to weight , measure, test or do some other act.

And the property does not passes until such act or thing is done and the buyer has notice there of.5 Sale of unascertained goods:The contract for the sale of unascertained goods by description and the goods are in deliverable state are unconditionally appropriated to the contract either by the seller with the assent of buyer or by the buyer with the assent of seller.

The properties in goods there upon passes to the buyer.6 Goods sent on approval or on sale or return:If the goods are delivered to the buyer on approval or on sale or return the property therein passes to the buyer.

If the buyer retains the goods without giving any notice of rejection , the property passes to the buyer when the time fixed for return expires.Transfer of title of goodsThe general rule that only the owner of the goods cam sell goods.If the seller sell such a good which is not his property then buyer will get no title of good.Owner of goods is protected against the claims of the buyer.Exceptions of the ruleSale under the implied authoritySale by co-ownerSale by co-ownerSale by mercantile agentSale by a person in possession under voidable contractSale by seller in possession after saleSale by unpaid sellerSale by buyer in possession after sale1 Sale under the Implied authority:The true owner shows by his behavior that the seller has the authority to sell the good.

And then the buyer gets the title of the goods.2 Sale by the co-owner:The co-owner of the goods having the sole possession of the goods can sell these goods with the permission of the other co-owner.

And the buyer will get the title of goods purchased by him on good faith.3 Sale by mercantile agent:Mercantile agent is a person who is in the ordinary course of business and has the authority to sell the goods on behalf of the business.

The buyer buys goods from the agents and gets the title of the goods.4 Sale by a person in possession under voidable contract:If a person having the possession under voidable contract sells them, then the buyer who buys goods get the title of goods if at the time of sale the contract has not been rescinded and the buyer has no notice of sellers default in title.5 Sales by seller in possession after sale:The buyer gets the title of goods if he purchases the goods from the seller who has already sold the goods but has goods in his possession and the buyer has not any notice of pervious sale.6 Sales by unpaid seller:A person who has sold the goods but price has not been paid to him is called unpaid seller.

An unpaid seller who has given the reasonable time and notice to sell the goods, the buyer of such goods get the title of goods.

7 Sales by buyer in possession after sale:If a person buy goods form someone and have goods in his possession but the seller still has lien or right over the goods then the seller can sell the goods with the consent of the seller.

The buyer of such goods will have the title of goods.