Transfer of property as between seller and buyerCentral

Section 19 of The Sale of Goods Act, 1930

(1)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 he transferred.
(2)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.
(3)Unless a different intention appears, the rules contained in sections 20 to 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.

Summary

This part of the 1930 Act states that ownership of specific or identified goods moves to the buyer exactly when the two parties want it to move.
To find out what the parties intended, you must look at the specific terms written in their agreement.
The way the buyer and seller behave toward each other is also used to decide when they meant for ownership to change.
The overall circumstances and facts of the specific deal are taken into account to determine this timing.
If the parties did not make their timing clear, the Act provides a set of default rules in sections 20 through 24 to figure it out.

Practical examples

1Amar agrees to buy a specific laptop from Bharat. They write in their contract that Amar becomes the owner only after he pays the full price of 50,000 rupees next Friday. Even if Amar takes the laptop home today, Bharat remains the owner until Friday because that was their stated intent.

2Chitra visits an art gallery and picks out a specific painting. She pays the gallery owner immediately and they both agree the painting is now hers, though she will pick it up tomorrow. Ownership passes to Chitra the moment they reach that agreement.

FAQ

1. When does property pass under Section 19 of the Sale of Goods Act, 1930?

Under Section 19 of the Sale of Goods Act, 1930, property in specific or ascertained goods passes to the buyer at the time the parties to the contract intend it to be transferred.

2. How do you determine the intention of parties under Section 19 of the Sale of Goods Act, 1930?

To determine intention under Section 19 of the Sale of Goods Act, 1930, one must look at the terms of the contract, the conduct of the parties, and the circumstances of the case.

3. Are there default rules if intention is not clear in Section 19 of the Sale of Goods Act, 1930?

Yes, Section 19 of the Sale of Goods Act, 1930, states that unless a different intention appears, the rules in sections 20 to 24 are used to find the time at which property passes.

Test yourself

Q1.Under Section 19 of the Sale of Goods Act, 1930, when is property in specific goods transferred?

Q2.According to Section 19 of the Sale of Goods Act, 1930, which of these is NOT used to ascertain the parties' intention?

Q3.Under Section 19 of the Sale of Goods Act, 1930, which sections provide the rules for finding intention if the contract is silent?

Q4.Does Section 19 of the Sale of Goods Act, 1930, apply to unascertained goods?

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