Sale of Goods. [Ch. 31. No.9.

821

 

PART ITT.
EFFECTS OF THE CONTRACT.

Transfer of property as between seller and buyer.

18. Where there is a contract for the sale of unascertained
goods, no property in the goods is transferred to the buyer
unless and until the goods are ascertained.

19. (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 be transferred.

(2) For the purpose of ascertaining the intention of
the parties, regard should be had to the terms of the con-
tract, the conduct of the parties, and the circumstances of
the case.

20. Unless a different intention appears, the following 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:

I. Where there is an unconditional contract for the
sale of specific goods in a deliverable state, the property
in the goods passes to the buyer when the contract is
made, and it is immaterial whether the time of payment
or the time of delivery, or both, be postponed.

II. Where there is a contract for the sale of specific
goods and the seller is bound to do something to the
goods for the purpose of putting them into a deliverable
state, the property does not pass until such thing be
done, and the buyer has notice thereof.

III. Where there is a contract for the sale of specific
goods in a deliverable state, but the seller is bound to
weigh, measure, test, or do some other act or thing
with reference to the goods for the purpose of ascer-
taining the price, the property does not pass until such
act or thing be done, and the buyer has notice thereof.

IV When goods are delivered to the buyer on
approval or “ on sale or return,” or other similar terms,
the property therein passes to the buyer—

(a) when he signifies his approval or acceptance

Property in
unascer-
tained goods
does not
pass.

Property in
specific or
ascertained
goods passes
when
intended to
pass.

Rules for
ascertaining
intention as
to time when
property
passes.