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    Question

    According to Section 18 of the Sale of Goods Act, 1930,

    at what point can property in unascertained goods pass to the buyer? 
    A Immediately upon contract formation, even if goods are not identified Correct Answer Incorrect Answer
    B Only when the goods are ascertained (identified and appropriated to the contract) Correct Answer Incorrect Answer
    C When the buyer makes payment, regardless of identification Correct Answer Incorrect Answer
    D When the seller delivers the goods, without requirement of identification Correct Answer Incorrect Answer
    E Never, as unascertained goods cannot be subject to a sale Correct Answer Incorrect Answer

    Solution

    Section 18 categorically states: "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." Unascertained goods are goods not identified at the time of contract formation (e.g., "50 tons of wheat from a 1,000-ton cargo"). Property cannot pass until specific goods are identified and appropriated to the contract with the consent of both parties. This protection ensures that both buyer and seller clearly identify which goods are being sold. Once goods are ascertained through appropriation with mutual consent (or through delivery to a carrier without reservation of disposal rights), property passes and the buyer bears risk. The Supreme Court in S.T. Commissioner v. H. Adamji & Co. held that property in unascertained goods remains with the seller until clear identification occurs.

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