Summarise four rules governing the transfer of property in goods.

Rules governing the transfer of property in goods

  • When there is an unconditional contract for the sale of specific goods in a deliverable, state, the property passes to the buyer when the contract is made.
  • Where there is a contract for the sale of specific goods not in a deliverable state, the property does not pass until the seller does something to put them in a deliverable state.
  • 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 something with reference to the goods so as to ascertain the price, the property does not pass until that thing is done and the buyer is notified.
  • When the goods are delivered to the buyer on “approval or sale or return” or other similar terms, the property passes to the buyer when he signifies his approval, or retains the goods without giving the seller a notice of rejection
  • Where there is a contract for the sale of unascertained or future goods description, the property in them does not pass until the goods are ascertained.
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