TRANSFER
OF
OWNERSHIP
meaning
 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
ACTION AGAINST THIRD
PARTIES
ONLY OWNER
HAS RIGHT OF
ANY
PROCEEDING
AGAINST THIRD
PARTY.
RISK FOLLOWS
OWNERSHIP
 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
IF THE DELIVERY HAS BEEN
DELAYED THROUGH FAULT , THEN
RISK IS ON FAULTY PARTY
( CASE STUDY REGARDING 30 TONS OF
APPLE JUICE CONTANIRE’S DELAYED
DELIVERY )
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
GOODS MUST BE
ASCERTAINED
 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
INTENTION OF THE PARTIES
CASE STUDY
APPLEBY V/S MYERS
CASE REGARDING SELLING OF
DAMAGED MACHINERY
TRANSFER OF OWNERSHIP
OR
PASSING OF PROPERTY
A.TIME WHEN
THE PROPERTY
CHANGES
HANDS
B.RESERVATION
OF PROPERTY IN
ASCERTAINED
GOODS
A.TIME WHEN THE PROPERTY
CHANGES HANDS
 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
ASCERTAINED
GOODS
UNASCERTAINE
GOODS
GOODS SENT ON
APPROVAL
1.PASSING OF PROPERTY IN
ASCERTAINED GOODS
WHEN GOODS IN DELIVERABLE STATE
WHEN GOODS NEED TO BE PUT IN
DELIVERABLE STATE
WHEN SELLER HAS TO DO SOMETHING
FOR ASCERTAINED THE PRICE
1. PASSING OF PROPERTY AT THE
TIME OF CONTRACT
 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.
PASSING OF PROPERTY
DELAYED BEYOND THE DATE
OF THE CONTRACT
1.GOODS ARE
NOT IN
DELIVERABLE
STATE
2.PRICE TO BE
ASCERTAINED
BY
SOMETHING
GOODS NOT IN DELIVERABLE
STATE
SELLER DO SOMETHING TO MAKE IN
DELIVERABLE STATE
PRICE ASCERTAINED BY
WEIGHTING
BEFORE ASCERTAINING PRICE
RISK IS ON THE SELLER