TRANSFEROF

OWNERSHIP

TRANSFER ALL RIGHTS TO THE PROPERTY FROM SELLER TO BUYER

TRANSFER OF OWNERSHIP DIFFERENT FROM TRANSFER OF POSSESION

TRANSFER OF POSSESION NEED NOT NECESSARILY MEAN A TRANSFER OF OWNERSHIP

meaning

ONLY OWNER HAS RIGHT OF

ANY PROCEEDING AGAINST THIRD

PARTY.

ACTION AGAINST THIRD PARTIES

AFTER OWNERSHIP, RISK ALSO TRANSFER TO THE BUYER

RULE APPLIED “RISK PRIMA FACIE’’ MEANS RISK FOLLOW OWNERSHIP WHETHER POSSESSION HAS TRANSFER OR NOT

IN CASE OF SELLER INSOLVENCY AFTER SALE BUT BEFORE DELIVERY OF GOODS, NOT RIGHT TO RETAIN TO SELLER

RISK FOLLOWS OWNERSHIP

( CASE STUDY REGARDING 30 TONS OF APPLE JUICE CONTANIRE’S DELAYED

DELIVERY )

IF THE DELIVERY HAS BEEN DELAYED

THROUGH FAULT , THEN RISK IS ON FAULTY

PARTY

INSOLVENCY&

SUIT FOR PRICE INSOLVENCY MAY

BE OF SELLER OR BUYER.

TO KNOW OFFICIAL RECIEVER OF GOODS.

INSOLVENCY DEPENDS ON OWNERSHIP OF GOODS.

RULES FOR PASSING PROPERTY

SECTION 18

WHERE THERE IS A CONTRACT FOR SALE OF UNASCERTAINED GOODS, NO PROPERTY IN THE GOODS IS TRANSFERRED TO THE BUYER UNLESS & UNTILL THE GOODS ARE ASCERTAIINED

GOODS MUST BE ASCERTAINED

CASE STUDYAPPLEBY V/S MYERS

CASE REGARDING SELLING OF DAMAGED MACHINERY

INTENTION OF THE PARTIES

TRANSFER OF OWNERSHIPOR

PASSING OF PROPERTY

IN CASE OF CONTRACT, TRNSFER OF OWNERSHIP DEPENDS ON AGREEMENT IN WHICH PARTIES AGREED THAT WHEN TRANSFER TAKE PLACE.

IN ABSENCE OF AGREEMENT, TRANSFER OF OWNERSHIP WILL DEEMED TO BE AFFECTED IN A SALE CONTRACT.

TRANSFER OF OWNERSHIP DEPENDS ON TYPES OF GOODS

A.TIME WHEN THE PROPERTY CHANGES

HANDS

1.PASSING OF PROPERTY IN ASCERTAINED GOODS

DELIVERABLE STATE IS THAT STATE THAT BUYER WOULD UNDER THE CONTRACT BE BOUND TO TAKE DELIVERY OF GOODS.

PROPERTY IS TREATED AS TRANSFERRED TO THE BUYER WHEN CONTRACT IS MADE.

EVEN DELIVERY AND PRICE IS POSTPONED AT THAT TIME.

1. PASSING OF PROPERTY AT THE TIME

OF CONTRACT

PASSING OF PROPERTY DELAYED BEYOND THE

DATE OF THE CONTRACT

SELLER DO SOMETHING TO MAKE IN DELIVERABLE STATE

GOODS NOT IN DELIVERABLE STATE

BEFORE ASCERTAINING PRICE RISK IS ON THE SELLER

PRICE ASCERTAINED BY WEIGHTING