TRANSFER OF PROPERTY

Introduction
According to the Transfer of
Property Act 1882,
Transfer of Property means an act by

which a person conveys property to one or

more persons. The act of transfer may be
done in the present or for the future. The
person may include an individual, company
or association or body of individuals, and any
kind of property may be transferred,
including the transfer of immovable property.

Transfer of property
Sale

is the first step in the

TRANSFER OF PROPERTY IN GOODS
by the seller to the buyer.

The

Phrase TRANSFER OF
PROPERTY IN GOODS means
Transfer of ownership of the Goods
from one person to another.

Transfer of property(contd..)
Property

in Goods is different
from Possession of Goods.

Possession

of Goods refers to the

custody over the Goods whereas
Property in Goods means
ownership over the Goods.

Importance of transfer of
property
Risk

follows ownership
if property has passed to the
buyer, he becomes the owner of
the goods and then the risk of
destruction, damage or loss.
Action against third parties
if goods are damaged by action
of third parties, only owner of
goods can take the action.

Importance of transfer of
property(contd..)
Suit

for price
Seller become entitled to recover
price of goods only when
property in goods has passed to
buyer.
Insolvency
If the ownership has passed to
buyer and buyer became
insolvent, buyers official receiver
can take possession of goods or

Time when property

passes

1)Specific

or ascertained

goods.
2)Unascertained goods.

Specific or ascertained
goods
Goods

that are existing at the

time of contract of sale and it is
identified and agreed upon time
of sale.
Section 19 of Sale of Goods Act
provides Where there s a
contract for sale of specific or
ascertained goods,the property in
them is transferred to buyer at
such time as the parties to
contract intend to be

Rules as regards ascertaining

goods
(sec.20-24)
1)Passing

of property at time
of contract
When there is a unconditional
contract for the sale of goods in a
deliverable state, The property in
goods passes to buyer when
contract is made. The payment of
price of delivery does not prevent
property in goods passing at

Passing of property delayed

beyond date of contract

Goods

not in deliverable

state
Something has to be done by
the seller to put them in a
deliverable state, property
passes only when such thing is
done, and the buyer has notice
thereof.

Passing of property delayed

beyond date of contract(contd..)
When

price of goods to be
ascertained by weighing or
measurement
Where there is a contractor for the sale of
specific goods in a deliverable state but
seller is bound to weigh, test or do some
other thing with reference to them, for
ascertaining the price, the property does
not pass till such act or thing is done and
the buyer has notice of it.(sec.22).

Unascertained or future goods

(sec.23)

There

is a contract for the sale of

unascertained goods, property in
the goods in not transferred to
the buyer unless and until the
goods are ascertained.(sec18).
Process of ascertainment
involves separating, weighing,
measuring, counting.

Unascertained or future
goods(contd..)
Sale

On Approval or Sale or
Return basis
Where goods are delivered to the
buyer on approval or on Sale or
return or similar terms, the
property passes to the buyer:

Unascertained or future
goods(contd..)
Essentials

of valid appropriation
1.The appropriation must be of goods
answering contract description.
2.The appropriation must be intentional.
3.The appropriation must be made either
by
seller with the assent of buyer or
by the buyer with the assent of seller.
4.The appropriation must be
unconditional.

Unascertained or future
goods(contd..)
Delivery

to carrier[sec.23(2)].
Delivery to a carrier without reserving
the right of disposal is a delivery to the
buyer
and the property passes at once at a
time of delivery to the carrier.
Reservation of right of
disposal(sec.25)
Reserving a right to dispose of the
goods until certain conditions(like
payment of price) are fulfilled.

Transfer of title by Non-owners

(sec.27-30)
Transfer

of title by Non-owners
(sec.27-30)
The general rule is that only the
owner of goods can transfer a good
title. No one can give better title than
he himself has. This rule is expressed
by the maxim Nemo dat quod non
habet, which mean that no one can
give what he himself has not.

Exception of the rule

Sale

by mercantile agent.
(sec.27)
It as an agent having in the
customary course of business as
such agent authority either to sell
goods for the purpose of sale, or
to buy goods, or to raise money
on the security of goods.

Exception of the rule(contd..)

Sale

by a joint-owner.(sec.28)
Several joint owners of goods has
the sole possession thereof, with
the consent of the others, any
purchaser from such person, for
value without notice at the time,
of the sellers want of authority to
sell, acquire a good title thereof
against the other joint owners.

Exception of the rule(contd..)

Sale

by a person in
possession under a voidable
contract(sec.29)
A person who has obtained
possession of goods under a
contract which is voidable on the
ground of fraud,
misrepresentation, coercion, or
undue influence, can convey a

Exception of the rule(contd..)

Sale

by a seller in possession of
goods after sale.(sec.30)
A seller having sold goods, continues in
possession thereof or title to the goods,
the transfer by such person or by a
mercantile agent acting for such person,
of the same, by way of sale will pass a
good title to the transferee, if such latter
person has acted in good faith and
without notice of the previous sale.

Exception of the rule(contd..)

Sale

by buyer in possession of
goods.(sec.30(2))
A person having bought or agreed to buy
obtains, with the consent of the seller,
possession of the goods or of the
documents of title to the goods. The
delivery of such person, of the goods or
documents, pledge or other disposition
thereof will be valid and effective, if the
person receiving the same, acted
bonafide and without notice of the
sellers lien, if any.

Exception of the rule(contd..)

Sale

by an unpaid seller.
(sec.54(3))
An unpaid of goods who has
exercised his right of the lien or
stoppage in transit can, even
though the ownership in them
has passed to the buyer, resell
the goods and convey a valid to
another buyer, though no notice
of re-seller has been given to the