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By separating the quantity contracted from the other goods


Raj agrees to sell 10 bags of rice to Kiran out of 100 bags available. When both Raj and Kiran identify the particular bags 10 bags and keep those bags apart from the lot it is called appropriation of goods and Kiran becomes the owner of the goods as soon as they are identified and separated from the bulk.

By putting the quantity contracted for in the suitable container or replicates


X agreed to sell the oil to be produced by him, to Y. The oil was filled by X into the bottles supplied by Y. It is an effective appropriation and the ownership passes to the buyer when the oil is filled into the bottles. In this case, the buyer gave his consent to the appropriation by supplying the bottle.

By delivery of goods contracted to carrier

Appropriation of goods may also be done by making delivery of the goods to the carrier for transmission to the buyer. The delivery of goods may be of two types-
  • Unconditional Delivery: In this case, the ownership passes from the seller to the buyer at the time when the goods are delivered to the carrier.
  • Conditional Delivery: In this case, the ownership does not pass to the buyer, unless the condition is fulfilled, e.g. bill is accepted or payment is made. In such a situation, normally the seller reserves a right of disposal of the goods.

Note: â€˜Right of disposal’ means the right not to transfer the possession of the goods until certain conditions are fulfilled.



When the railway receipt or the bill of lading is in the name of the buyer, but is sent through the bank with the instructions that the same is to be delivered against the acceptance of the bill or payment of the price, the property in the goods shall not pass unless such payment is made or bill of exchange accepted.

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