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      Question

      Under Section 20 of the Sale of Goods Act, 1930, when

      does property pass in a contract for sale of specific goods in a deliverable state? 
      A When the buyer receives physical possession of the goods Correct Answer Incorrect Answer
      B At the time of contract formation, even if payment or delivery is postponed Correct Answer Incorrect Answer
      C When the buyer pays the full price Correct Answer Incorrect Answer
      D When the seller delivers the goods to a carrier Correct Answer Incorrect Answer
      E When the buyer accepts and retains the goods without objection Correct Answer Incorrect Answer

      Solution

      Section 20 provides: "Where there is a contract for the sale of specific goods, and the goods are in a deliverable state, the property in the goods is transferred to the buyer at the time when the contract is made, and it is immaterial whether the time of payment or the time of delivery, or both, be postponed." This provision reflects the principle that property and possession are independent. A buyer may become owner without possessing the goods, and the seller may retain possession as a bailee even after ownership passes. For example, if A buys a television in a store with delivery scheduled a month later, A becomes the owner immediately upon contract formation and bears the risk of loss. The buyer's right to reject goods for non-conformity survives the passage of property, providing protection despite ownership transfer.

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