Sales of Goods Act - Transfer of ownership in Un-ascertained Goods

Introduction

In this article we have discussed why we need to study transfer of ownership as well as transfer of ownership of specific goods.

In this blog we will cover how ownership is transferred in case of un-ascertained goods. Section 23 deals with such transfer. Un-ascertained goods are those goods which are yet to be identified or ascertained for the purpose of contract

How ?

Suppose if you go to Mr Bangur for Bangur cement and enter into contract for 100 bags of cement. Mr Bangur have very big godown where he have thousands of cement bags. In such scenario how will you determine when exactly the ownership is transferred.

There are few things

  • Un-ascertained goods first have to be turned into ascertained goods. Meaning you have to assign certain goods to contract. This is also known as appropriation. In above example, it would mean selecting 100 bags of cement out of thousands of bags from godown.
  • This appropriation or selecting of goods out of un-ascertained goods have to be informed to other party and take the assent of other party. For example, if seller selects the goods then it had to be done with the assent of buyer, and if buyer have to be appropriated the goods then he had to take assent of seller. Here assent means permission
  • Goods assigned to contract must match the description of goods given in contract. If there is contract of un-ascertained goods of 100 bags of sugar, then appropriated goods must be sugar bags and not cement bags. (So obvious)
  • This appropriation or selection of goods or assigning of goods to contract must be unconditional. For example seller had selected 100 bags as per contract, informed the buyer with the condition that he will have to pay 2Rs extra per bags, such appropriation would not make buyer the owner


When all of the above conditions are satisfied then goods are passed to the buyer. This is the case with Contract of Sale in un-ascertained goods like "100 bags from godown". 

In Agreement to sale, determining ownership is little bit easy. As it is agreement to sale, seller will be owner as long as condition stipulated in agreement is not fulfilled.







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