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Passing of property

The transfer of property in goods to the buyer depends on two basic factors:
  • Identification of goods: The property in goods cannot be transferred unless and until they are identified i.e. ascertained, Sec 18. When there is a contract of unascertained goods, no property in goods is transferred to the buyer unless the goods are ascertained and specified. The buyer can gain the right over the property only over some particular and specified goods.
  • Intention of the parties: The time when the property shall pass to the buyer shall entirely depend upon the intention of the parties. These intentions shall generally be expressed in the terms of the contract. For the purpose of ascertaining the intention of the parties, regards shall be had to the terms of the contract, conduct of the parties and the circumstances of the case, Sec 19(2).

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