The Passing or transfer of property constitutes most important element and factor to decide legal rights and liabilities of seller and buyer. The…

(a) Primary rule determining the passing of property from seller to buyer (i) Where the goods are Ascertained (Section 19 of the Sale of Goods Act,1930): Where there is a contract 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. [sub-section (1) ] For the purpose of ascertaining the intention of the parties, regard shall be had to the terms of the contract, the conduct of the parties and the circumstances of the case. [sub-section (2) ] Unless a different intention appears, the rules contained in Sections20to 24 are rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer. [sub-section (3) ] Stages of goods while passing of property (a) Specific goods in a deliverable state Section 20 of the Act provides that 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 when the contract is made, and it is immaterial whether the time of payment of the price or the time of delivery of the goods, or both, is postponed. Here, condition is goods must be ready for delivery. (b) Specific goods to be put into a deliverable state. Section 21 of the Act provides that 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. (c) Specific goods in a deliverable state, when the seller has to do anything thereto in order to ascertain price. Section 22 of the Act provides that where there is a contract for the sale of specific goods in a deliverable state, but the seller is bound to weigh, measure, test or do some other act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until such act or thing is done and the buyer has notice thereof. (ii) Where the goods are Unascertained: Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained. [Section 18] The rules in respect of passing of property of unascertained goods are as follows: 1. Sale of unascertained goods by Description and Appropriation [Section 23 (1) ]: Appropriation of goods involves selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer. The essentials are: a. There is a contract for the sale of unascertained or future goods. b. The goods should conform to the description and quality stated in the contract. c. The goods must be in a deliverable state. d. The goods must be unconditionally (as distinguished from an intention to appropriate) appropriated to the contract either by delivery to the buyer or his agent or the carrier. e. The appropriation must be made by: the seller with the assent of the buyer; orthe buyer with the assent of the seller. f. The assent may be express or implied. g. The assent may be given either before or after appropriation 2. Delivery of the goods to the carrier [Section 23 (2) ]: Where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier or other bailee (whether named by the buyer or not) for the purpose of transmission to the buyer, and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract.