Business Law

Transfer of property
The transfer of property in the goods from the seller to the buyer is the most important element in contracts for the sale of goods. Property here means, ownership or title of the goods and there must be an absolute transfer or ownership in a contract of sale of goods.

Rules regarding transfer of property under the following two heads A. Transfer of property in specific or ascertained goods where there is a contact for the sale of specific or ascertained goods the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred.

Where there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer as soon as the contract is made ,and it is immaterial whether the time of payment.

Where there is a contract for the sale of specific goods and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done and the buyer has notice thereof.

Where there is a contract for the sale of specific goods in a deliverable state ,but the seller is bound to weight ,measure, test or do some other act with reference to the goods for the purpose of ascertaining the price.

When goods are delivered to the buyer on approval or on sale or return; or on other similar terms, the property therein passes to the buyer.

Where goods contacted to be sold are not ascertained or where they are future goods, the property in goods does not pass to the buyer unless and until the goods are ascertained or unconditionally appropriated to the contract so to bring them in a deliverable state.

where goods are sold by a person who is not the owner thereof and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had.(sec.27)

If the property, either movable or immovable belongs to one or more persons, they are called joint owners. The buyer will get a valid title over the goods. Conditions(sec 28) a. The co-owner must be in the sole possession of the goods. b. The possession must be with the consent of another or other co-owner. c. The buyer should purchase the goods for consideration.

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To deliver the goods in accordance with the terms of the contract of sale. (sec.31) As delivery and payment are concurrent conditions. If an agent is authorized to take delivery, then the delivery should made to the agent. Seller deliver the goods with in a reasonable time. The quality and quantity of the goods should be according to the contract. The seller deliver the goods at specific place, if it is stated.

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Right to realize the price of the goods mentioned in a contract of sale If the goods are sold on credit ,he has a right to get the price. If the buyer fails to pay the amount, the seller has a right to take back the goods. The seller has a right to file a suit, if the buyer fails to pay the price of the goods with in the agreed time.

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Delivery of the goods as per the contract. Right to examine the goods. Right against the seller for breach of the contract. If the delivered goods are defective ,the buyer has a right to reject the goods.

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To accept the goods and pay for them in exchange for possession. If the buyer wrongfully refuses to accept delivery ,he must pay compensation to the seller. To demand delivery at a reasonable time. To intimate seller where he rejects the goods.

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Rights of an unpaid seller against the goods

An unpaid seller has the following rights for realizing the price of the good. A. Right of lien (sec.47 to 49) Right to retain possession of goods until payment of the price. i. Where the goods have not been sold on the credit. ii. Sold on credit ,but the time of credit period has expired. iii. Where becomes insolvent

B. Right of stoppage in transit (sec50 to 52) I. When the buyer becomes insolvent II. When the goods are in transit C. Right to resale (sec.54) I. goods are of a perishable nature. II. Unpaid seller give notice of his intention to sell. III. Buyer make default.

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