Question
Under Section 19(3) of the Sale of Goods Act, 1930, in
the absence of contrary intention of parties, which rules apply to ascertain when property passes?ÂSolution
Section 19(3) provides: "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." These default rules include: (i) Section 20 – specific goods in deliverable state (property passes immediately); (ii) Section 21 – specific goods requiring work by seller (property passes when work is completed and buyer is notified); (iii) Section 22 – seller must do something to ascertain price (property passes after price is ascertained); (iv) Section 23 – unascertained goods by description (property passes when goods are appropriated with mutual consent); and (v) Section 24 – goods sent on approval (property passes when buyer signifies approval or retains goods beyond stipulated time). These rules operate as presumptions, not absolute rules, and can be displaced by the parties' express or implied contrary intention.
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