transfer of property goods

Transfer of Property in Goods: Significance, Rules

Post last modified: 13 January 2022
Reading time: 25 mins read
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What is transfer of property in goods?

A contract of sale of goods is a contract whereby the seller transfers property in the goods to the buyer for a price. ‘Passing of property in goods means ‘ transfer of ownership of the goods . When the goods are sold, it is the property in the goods that are transferred to the buyer.

Table of Content

1 What is transfer of property in goods?
2.1 Risk Prima Facie Passes With Ownership
2.2 Exercise of Proprietary Rights or Action Against Third Party
2.3 Seller’s Right for Price
2.4 Insolvency of the Seller or Buyer
3.1 Where Goods Are Specific or Ascertained
3.2.1 Specific Goods in a Deliverable State
3.2.2 Specific Goods Not in a Deliverable State
3.2.3 Specific Goods Are in Deliverable State but the Seller Has to Do Something to Ascertain the Price
3.3.1 Ascertainment of Goods
3.3.2 Appropriation of Goods
3.4 Where Goods Are Sent on Approval or ‘on Sale or Return
3.5 Risk Prima Facie Passes With Property
4.1 Title by Estoppel
4.2 Sale by Mercantile Agent
4.3 Sale by One of the Joint Owners
4.4 Sale by a Person Who Is in Possession of Goods Under a Voidable Contract
4.5 Sale by seller in possession of goods after sale
4.6 Sale by a Buyer Who Is in Possession of Goods Under a Contract of Sale
4.7 Resale by an Unpaid Seller
4.8 Sale under Provisions of other Acts
5.1 What is transfer of ownership in goods?
5.2 What is deliverable state in sale of goods Act?

It may be noted that there is a difference between ‘property in goods’ and the physical ‘possession of the goods. A person may be in possession of the goods but he may not be the owner of the goods.

For example, an agent, a servant, a hire purchaser, or a bailee may be in possession of goods, but none of them is the owner of those goods because the property in the goods does not vest in them, and each one of them holds the goods for his principal master, hire seller, or bailor respectively.

Significance of Transfer of Ownership

The following reasons indicate the importance of this question and they are also the rules to be applied in the absence of an agreement (or arrangement or understanding) concerning these points:

Risk Prima Facie Passes With Ownership

Exercise of proprietary rights or action against third party, seller’s right for price, insolvency of the seller or buyer.

It is the rule of law that risk, at first sight, or on the first impression, passes with the property. Therefore, if the property has passed to the buyer, he becomes the owner of the goods and then the risk of destruction, deterioration, damages or loss of goods is that of the buyer. He will have to bear the loss caused due to any reason.

‘Proprietary right’ means a right to own and control like a proprietor or owner of some property (estate). On transfer of ownership, the buyer can exercise proprietary rights over the goods. For example, he can sue the seller if he refuses to deliver the goods and the buyer can also recover the goods from another person to whom the seller has resold the goods.

Moreover, if the goods are damaged or destroyed by an act of a third party, the buyer can take action against such a party. Thus, the owner alone can exercise proprietary rights.

Seller’s right for price: The seller becomes entitled to recover the price of the goods from the buyer only when the property in the goods has passed to the buyer.

If the seller or buyer becomes insolvent, the question arises as to whether the Official Receiver or the Assignee can take over the goods from him or not. The answer depends upon the situation whether the property in the goods has passed to the buyer or not.

If the ownership has passed to the buyer and the buyer is declared insolvent by the Court, then the buyer’s Official Receiver shall have a right to take possession of the goods even though the goods are still lying with the seller.

On the other hand, if the goods are in the possession of the seller and he is adjudged insolvent, then the buyer has a right to take possession of the goods from the seller’s Official Receiver.

Rules Regarding Transfer of Property

The rules regarding transfer of property determine the point of time when the property passes or ownership is transferred from the seller to the buyer. In fact, the whole question of transfer of ownership is left to the intention of the parties and they are free to fix up any time for the transfer of ownership from the seller to the buyer.

However, where the intention of the parties is not clear from the contract, the time of transfer of ownership depends mainly on the nature of the goods and is decided as follows:

Where Goods Are Specific or Ascertained

Rules for ascertaining the intention of the partie, where goods are unascertained, or future goods, where goods are sent on approval or ‘on sale or return, risk prima facie passes with property.

Specific goods mean those goods which are identified and agreed upon at the time of contract of sale. When the goods are identified after the contract of sale and then they become known to certain, such goods are called ascertained goods.

Section 19 of the Sale of Goods act provides that “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.

“As far as the question of intention of the parties is concerned, such intention shall be ascertained keeping in mind:

The terms of the contract.
The conduct of the parties.
The circumstances of the case. It is to be noted that sale is a matter of mutual opinion or consensus, the law leaves the parties free to settle any terms (of course not to be illegal) they please. Therefore, in formulating their intention the parties may fix any time when the ownership is to be transferred.
It may be the time of delivery of goods or the time of payment of price, or the time of contract, or any other point of time.

Where the goods are specific or ascertained, the following rules are to be applied for ascertaining the intention of the parties in regard to the time at which the property in the goods is to pass to the buyer:

Specific Goods in a Deliverable State

Specific goods not in a deliverable state, specific goods are in deliverable state but the seller has to do something to ascertain the price.

‘Deliverable state’ means that state of goods in which the buyer shall be bound to take delivery of them. According to Section 20 of Sale of Goods Act, if (i) the goods are specific, (ii) the contract of sale is unconditional, i.e., there is no condition regarding the transfer of ownership of goods, and (iii) the goods are in a deliverable state, then in such a case, the ownership passes to the buyer at the time when the contract is made. It is immaterial whether the time of payment of price or the time of delivery of goods, or both, is postponed.

‘Not in a deliverable state’ means that the seller has something yet to do to the goods for the purpose of putting them into a deliverable state. For example, packing filling the goods in containers, collecting the goods, separating or loading the goods, etc.

In such a case, according to Section 21 of Sale of Goods Act, “the property does not pass until such thing is done and the buyer has notice thereof.”

If the specific goods are in a deliverable state but the seller is yet to weigh, measure, test or do some other act or thing in connection with the goods for the purpose of ascertaining the price, the ownership does not pass to the buyer until such act or thing is done and the buyer has notice thereof (Section 22 of Sale of Goods Act).

It means that in such a case, the ownership is transferred to the buyer at the moment when two conditions are fulfilled: (i) the seller has done the act or thing which is necessary for ascertaining the price of the goods, for example, taking weight, measurement, counting, etc.

Unascertained goods are unidentified goods and they are defined by description or by sample only. Future goods are those which are yet to be acquired or manufactured. In case of such goods, the ownership is transferred to the buyer as soon as the two conditions are fulfilled: (1) the goods are identified or ascertained, and (2) the goods are appropriated or set apart for the purpose of delivery to the buyer.

These two points may be explained as follows:

Ascertainment of Goods

Appropriation of goods.

Section 18 of Sale of Goods Act lays down the general rule that “No property in goods is transferred to the buyer unless and until the goods are ascertained.” Ascertainment of the goods is the process by which the identity of the goods to be delivered is established and recognised. The goods are ascertained by an appropriation also.

It may be noted that unless the goods are ascertained or appropriated, there is merely an ‘agreement to sell’. It will become ‘sale’ only when the necessary process of ascertainment or appropriation is completed. For example, X agrees to purchase a TV from the shop of Y. The ownership in TV shall not pass to X until and unless a particular piece of TV is identified from the many TVs kept in the shop.

Section 23(1) of Sale of Goods Act provides that where there is a contract for the sale of unascertained or future goods, the ownership in such goods passes to the buyer only when the goods have been unconditionally appropriated as per the requirements of the contract.

‘Appropriation’ means the process by which the goods are selected (or separated) with the common or mutual consent of the seller and the buyer so as to determine and identify the actual goods to be delivered. Thus, completion of this process leads to the ‘ascertainment’ of goods.

It may be noted that ‘ascertainment of goods’ is a unilateral act and is usually done by the seller alone, whereas in the case of ‘appropriation of goods’ the mutual consent of the seller and the buyer is necessary and therefore it turns out to be a bilateral act of the parties.

Section 24 of Sale of Goods Act provides that when goods are delivered to the buyer on approval or ‘on sale or return’ or other similar terms, the ownership in such goods passes to the buyer in any of the following situations:

When the buyer signifies (makes known) his approval or acceptance to the seller. In other words, when he sends the message of his acceptance to the buyer.
When the buyer does some act which amounts to ‘adoption of the transaction’, i.e., the acceptance of the goods. For example, he sells the goods to another party or pledges it with a third party for taking loan.
When the buyer fails to return the goods on the fixed time, namely, retains it beyond the fixed time without giving notice of rejection (ownership passes on the moment when the fixed time expires); or.
When no time has been fixed for the return of goods, the buyer fails to return the goods within reasonable time, namely, he retains the goods beyond the reasonable time without giving notice of rejection (ownership passes on the moment when the reasonable time expires). Reasonable time is a question of fact and will depend on the circumstances and facts of each and thus it will differ in different cases.

Section 26 of Sale of Goods Act lays down the general rule that “Risk prima facie (i.e., at first sight) passes with property (ownership).” In other words, ‘risk always follows ownership’. Thus, the owner has to bear the whole burden of loss, the payment of price or the possession of goods is immaterial in deciding the question of risk.

Whosoever is the owner, carries the risk. Therefore, it may be said that as a rule, the goods remain at the seller’s risk until the ownership therein is transferred to the buyer, and the goods are at buyer’s risk when their ownership is transferred to him whether their delivery has been made to him or not. The loss due to destruction or damage of the goods, therefore, has to be borne only by the owner of the goods.

Exception: The general rule that ‘the risk prima facie passes with ownership’ has certain exceptions. It means that in the following circumstances the ownership may lie with one party while the risk may remain with the other party.

Transfer of Title by Non Owners

‘Property’ means ownership, while ‘title’ means right to ownership. From another angle, ‘property’ is absolute ownership and ‘title’ is qualified ownership. The term ‘title’ is usually used to denote a claim or right to ownership which means an assertion of the right to ownership.

This term particularly refers to the right of ownership when goods are sold by a person who is not the owner of those goods and who does not sell them under the authority or with the consent of the owner. However, in common parlance, both the terms are used to mean ownership.

It means that under the following circumstances the buyer gets a valid title, i.e., absolute ownership even if the seller is not the absolute or full owner:

Title by Estoppel

Sale by Mercantile Agent

Sale by One of the Joint Owners

Sale by a person who is in possession of goods under a voidable contract, sale by seller in possession of goods after sale, sale by a buyer who is in possession of goods under a contract of sale, resale by an unpaid seller, sale under provisions of other acts.

When the owner of the goods, by his statement or conduct, lead the buyer to believe that the seller has the authority to sell, then subsequently he may be estopped from denying the seller’s authority to sell.

Sale by Mercantile Agent

According to Section 27 of the Sale of Goods Act, where a mercantile agent makes a sale of the goods or of a document of title to the goods, he shall pass a valid title to the buyer, or the buyer gets a better title if the following two conditions are fulfilled:

The sale must be made by a mercantile agent with the consent of the owner and such agent must be in possession of the goods or the documents. Moreover, the sale must be made by him when acting in the ordinary course of business of a mercantile agent.
The buyer, who purchased goods from a mercantile agent, must have acted in good faith and he must not have noticed or knowledge that such agent has no authority to sell.

Section 28 of the Sale of Goods Act provides that if one of the several joint owners of certain goods has the sole possession of the goods by permission of the other co-owners, the property (ownership) is transferred to any person who buys such goods from such joint owner (co-owner) if that person:

Buys the goods in good faith.
Has no notice or knowledge at the time of the sale that the seller has no authority to sell.

According to Section 29 of the Act, when the seller of the goods has obtained possession thereof under a voidable contract (i.e., on the ground of coercion, fraud, misrepresentation or undue influence) but the contract has not been rescinded (cancelled) at the time of the sale, the buyer acquires a good title to such goods if he:

Buys them in good faith.
Without notice of the seller’s defect of title. For example, X obtains a car from a vehicle dealer by playing a fraud upon him. The contract is voidable at the option of the dealer. But before the dealer rescinds the contract, X sells the car to Z who buys it in good faith and without notice of the defective title of X. Here, Z gets a good title.

Section 30(1) of the Sale of Goods Act lays down that where a person, who has sold the goods but continues to be in possession of them or of the documents of title to them, resells such goods or documents, then a third person (new buyer) will get a good title if he (i) buys them in good faith, and (ii) without any notice of the previous sale. A pledge or any other disposition of the goods or of the documents of title to them by such seller is also equally valid.

According to Section 30(2) of the Act, where a person, who has either bought or agreed to buy goods, obtains the possession of the goods or of the documents of title to them with the consent of the seller, then any person will get a valid title to them if he (i) buys them in good faith, and (ii) without notice of any lien or other right of the original seller in respect of such goods or documents. A pledge or any other disposition of such goods or the documents by the said buyer are also equally valid.

Section 54(3) of the Sale of Goods Act lays down that where an unpaid seller who has exercised his right of lien or stoppage in transit resells the goods, the buyer acquires a good title thereto as against the original buyer whether the notice of resale has been given to the original buyer or not (See for further details, Chapter 21).

Under certain circumstances, a finder of goods may sell them and convey a good title to their purchase (See for details, Section 169 of Contract Act under Chapter 14).
If a pledger makes a default in payment of the debt or performance of his promise at the stipulated time, the pledge has the right to sell the pledged goods after giving a reasonable notice to the pledger. Ii such a case, the pledge (seller) conveys a good title to the buyer even though the pledgee is not the owner of the goods (see for details, Section 176 of the Contract Act under Chapter 14).
The Official Receiver or the Official Assignee or Liquidator of a company is appointed by the Court to sell the properties of the insolvent persons. Though they are not the owners of the properties, a person buying goods from them gets a good title thereto.

FAQ Related Transfer of Property in Goods

What is transfer of ownership in goods.

Transfer of Ownership in Goods: It means the transfer of ownership of goods from the seller to the buyer.

What is deliverable state in sale of goods Act?

Deliverable State: Goods are said to be in a deliverable state when they are in such state that buyer would under the contract be bound to take the delivery of them.

What is reliability phase, advantage, techniques, bailment and pledge: features, duties and rights, types.

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Transfer Of Ownership Agreement

Jump to section, what is a transfer of ownership agreement.

A transfer of ownership agreement is a contract used to transfer ownership of something sold by one person (the Seller) to the person buying the products (the Buyer). These agreements can be used to sell a goods, a business, a vehicle, or even land. Transfer of ownership agreements also may also transfer responsibilities and liabilities associated with the goods being sold.

There are several important components of the transfer of ownership agreement including the specific identification of the goods being sold, the date of the ownership transfer for tax payment purposes and any warranty protection for the buyer, and the payment terms of the sale.

Common Sections in Transfer Of Ownership Agreements

Below is a list of common sections included in Transfer Of Ownership Agreements. These sections are linked to the below sample agreement for you to explore.

Transfer Of Ownership Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-10.13 14 dex1013.htm UNIT TRANSFER AGREEMENT , Viewed October 24, 2021, View Source on SEC .

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Guidelines for Submission

Transfer of ownership of goods – modernising the rules

Sarah Green Commissioner, Law Commission of England and Wales

Matthew Barry Research Assistant, Law Commission of England and Wales

Time to read

The Law Commission has recently launched a consultation on a draft Bill to reform the rules that apply to the transfer of ownership of goods. In this post we explain the proposed reforms and the issues raised in the consultation paper .

In our July 2016 report , Consumer Prepayments on Retailer Insolvency, the Law Commission made a range of recommendations to enhance the protection of consumers who had paid retailers in advance for goods but had not received the goods at the point of the retailer’s insolvency. One of our recommendations was to reform the rules governing transfer of ownership. The Government asked us to draft legislation to implement this recommendation, leading to the draft Bill on which we are now consulting.

The current transfer of ownership rules are contained in the Sale of Goods Act 1979, and have remained largely unamended since 1893. These rules distinguish between “specific goods” and “unascertained goods”. Specific goods are goods which are identified and agreed upon at the time the contract of sale is made. Under the Act , the default position is that ownership of specific goods transfers when the contract is made, provided that the goods are in a “deliverable state”. What does “deliverable state” mean? The Act says that goods are in a deliverable state when the buyer is “bound to take delivery of them”. This can give rise to difficult questions of contractual construction which an insolvency practitioner (who, in practice, is the person who determines who owns what on an insolvency) may not be well placed to answer. For example, if a consumer selects a diamond ring in a shop and leaves the ring with the retailer to be inscribed, but the retailer goes insolvent before the inscription is completed, is the ring in a deliverable state? Is the consumer bound to take delivery only when the inscription is completed, or is the inscription the subject of a separate contract to the contract of sale? Insolvency practitioners might give different answers to these questions, creating uncertainty for consumers about their ownership of specific goods in insolvency situations.

Unascertained goods are goods which are not identified and agreed upon when the contract is made. Under the Act , the default position is that ownership of unascertained goods transfers when the goods are in a deliverable state and are “unconditionally appropriated” to the contract. What does “unconditionally appropriated” mean? Again, the answer is not entirely clear. The term is not defined in the Act. It is generally thought that unconditional appropriation means delivery, but in some cases the mere setting aside of goods has been found sufficient (compare Carlos Federspiel (1957) Lloyd’s Rep 240 with Aldridge v Johnson (1857) 119 ER 1476). Much like the “deliverable state” requirement, the requirement that unascertained goods must be “unconditionally appropriated” to the contract creates uncertainty for consumers about whether they can claim goods in an insolvency situation.

In the consultation leading to the July 2016 report, the Law Commission was told that the current rules are difficult for consumers to understand and can lead to results which are inconsistent with consumers’ reasonable expectations of when they will acquire ownership of goods. Many aspects of the contractual relationship between consumers and retailers are now set out in the Consumer Rights Act 2015, but the rules on transfer of ownership conspicuously are not. We think consumers deserve a clear, modern statement in the Consumer Rights Act 2015 about when they will acquire ownership of goods. With consumers increasingly paying for goods in advance online (online shopping currently accounts for nearly a third of all retail sales) and with retailer insolvencies at a five year high , the need for a clear set of transfer of ownership rules for consumers might be thought especially pressing.

The Law Commission’s draft Consumer Rights (Transfer of Ownership under Sales Contracts) Bill would insert transfer of ownership rules into the Consumer Rights Act 2015. These rules would apply to “sales contracts”, defined in the Act as contracts where the trader agrees to transfer ownership of goods to the consumer in exchange for a price. To the extent that the transfer of ownership rules in the Sale of Goods Act 1979 would also apply to these contracts, those provisions are disapplied by the draft Bill.

Like the Sale of Goods Act 1979, the draft Bill distinguishes between two types of goods: “goods which are identified and agreed on when the contract is made” and “goods which are not identified and agreed on when the contract is made”. For goods of the former type, the draft Bill provides that the sales contract is to be treated as including a term that “ownership of the goods transfers to the consumer when the contract is made”. There is no requirement that the goods must be in a “deliverable state”. Thus, under the draft Bill, the consumer who chooses a diamond ring in a shop would obtain ownership of the ring at the moment the contract is made, even if the ring is left with the retailer to be inscribed. This rule provides clarity for consumers about ownership of goods identified at the time of contracting, and can be easily applied by an insolvency practitioner.

For goods not identified when the contract is made, the draft Bill provides that the contract is to be treated as including a term that ownership transfers when the “goods that are to be used to fulfil the contract are identified by the trader”. There is no requirement that the goods must be “unconditionally appropriated” to the contract. The draft Bill sets out a non-exhaustive list of events and circumstances of identification, the occurrence of any of which will cause ownership to transfer to the consumer. These include: labelling the goods with the consumer’s name; setting aside the goods for the consumer; altering the goods to a specification agreed between the trader and the consumer; the trader telling the consumer that goods bearing a unique identifier will be used to fulfil the contract; the consumer examining the goods and agreeing that they are to be used to fulfil the contract; delivery of the goods to a carrier for delivery to the consumer; and delivery of the goods to the consumer. This list provides clarity for consumers as to when they will acquire ownership of goods they have contracted to buy and enables insolvency practitioners more easily to determine whether a transfer of ownership has occurred between the entry into the contract and the retailer’s insolvency.

The rules in the draft Bill would be mandatory, in contrast to those in the Sale of Goods Act 1979 which can be displaced by a contrary intention of the parties. Where a term of a sales contract provides that ownership is to transfer at a later time than under the draft Bill, the term would be to that extent of no effect. This means that a sales contract could not impose conditions upon the transfer of ownership in addition to those in the draft Bill: for example, that the consumer has paid for the goods. Section 39 of the Sale of Goods Act 1979 would, however, continue to apply, so that a trader would be able to exercise a lien over the goods in the event of non-payment by the consumer.

The draft Bill would not alter the position on the passing of risk, which is governed by separate rules in the Consumer Rights Act 2015 which would continue to apply. Under section 29 of the Act, risk passes only when the goods come into the physical possession of the consumer or a carrier commissioned by the consumer to deliver the goods. This is in contrast to the Sale of Goods Act 1979, where, unless otherwise agreed by the parties, risk passes upon the transfer of ownership.

In the consultation paper, we ask a number of questions about the draft Bill.

One set of questions asks about whether the rules are drafted sufficiently clearly and comprehensively. We ask whether there are other events and circumstances which should result in a transfer of ownership to the consumer, whether the rules should apply beyond sales contracts (for example, to conditional sales contracts and contracts for the transfer of goods) and whether rules should also be drafted for goods forming part of a bulk.

A second set of questions asks about how our proposed rules would interact with the proprietary claims of other creditors on an insolvency: for example, third party warehouses asserting a lien over the goods as security for their unpaid fees, and suppliers claiming that the goods are subject to retention of title.

A third set of questions asks about the formation of the sales contract. The transfer of ownership is of course reliant on a contract being in place between the consumer and the trader. However, traders often state in their terms and conditions that they will not accept the consumer’s offer to purchase the goods (and so the contract will not form) until the goods are “dispatched” to the consumer. This may have significant implications for the transfer of ownership, for if the contract does not form until dispatch, then ownership cannot transfer, even if one of the events and circumstances in the draft Bill has occurred. We ask questions about these terms and conditions, including why they are used, by whom, and their potential impact.

The Law Commission’s consultation is open until 31 October 2020.

Responses can be made by completing an online form or by email to [email protected] .

More information, including the draft Bill, consultation paper and a summary, is available at https://www.lawcom.gov.uk/project/consumer-sales-contracts-transfer-of-ownership/ .

How to cite this blog post (Harvard style)

Barry, M, Green, S. (2020). Transfer of ownership of goods – modernising the rules. Available at: https://www.law.ox.ac.uk/research-and-subject-groups/property-law/blog/2020/08/transfer-ownership-goods-modernising-rules (Accessed [date]).

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Commercial Law (4th edn)

New to this edition
Table of cases
Table of legislation
Abbreviations
1. An introduction to commercial law
2. Personal property
3. An introduction to the law of agency
4. The creation of the agency relationship
5. The authority of an agent
6. Relations between principal and agent
7. Relations between principal and third party
8. Relations between agent and third party
9. Termination of agency
10. An introduction to the sale of goods
11. The transfer of property and risk
12. The transfer of title by a non-owner
13. Perishing of goods
14. Delivery and payment
15. Statutory implied terms and statutory rights
16. The remedies of the seller
17. The remedies of the buyer
18. Product liability
19. An introduction to international sales and documentation
20. International trade terms
21. Contracts of carriage of goods by sea
22. Marine cargo insurance
23. Legal aspects of money and payment
24. Documentary payments
25. Security interests in property
26. Forms of title-based financing
Additional Chapter Principles of Insurance Law
Additional Chapter Aspects of Commercial ADR
Additional Chapter: The UN Convention on the International Sale of Goods

p. 283 12. The transfer of title by a non-owner

Eric Baskind , Eric Baskind Senior Lecturer in Law, Liverpool John Moores University and Visiting Research Fellow, Oxford Brookes University
Greg Osborne Greg Osborne Formerly Senior Lecturer in Law, University of Portsmouth
and Lee Roach Lee Roach Senior Lecturer in Law, University of Portsmouth
https://doi.org/10.1093/he/9780192895653.003.0012
Published in print: 13 May 2022
Published online: September 2022

This chapter considers the various circumstances in which a buyer may become the owner of the goods, notwithstanding that the seller is neither the owner of them, nor sold them with the owner’s consent. In the chapter, disputes concern not the seller but the owner of the goods and the buyer. The chapter presents a case that provides an example of the sort of problems which can arise in such disputes. A common theme in these types of cases is dishonesty, whereby the court will have to decide which of two innocent parties should suffer due to the dishonesty of another. This can arise in many different situations, such as where an innocent buyer buys goods from a seller who turns out to have stolen them or where a person obtains goods on hire purchase and dishonestly sells them before they have been paid for.

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§ 2-403. Power to Transfer; Good Faith Purchase of Goods; "Entrusting".

(1) A purchaser of goods acquires all title which his transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased. A person with voidable title has power to transfer a good title to a good faith purchaser for value. When goods have been delivered under a transaction of purchase the purchaser has such power even though

(a) the transferor was deceived as to the identity of the purchaser, or
(b) the delivery was in exchange for a check which is later dishonored, or
(c) it was agreed that the transaction was to be a "cash sale", or
(d) the delivery was procured through fraud punishable as larcenous under the criminal law.

(2) Any entrusting of possession of goods to a merchant who deals in goods of that kind gives him power to transfer all rights of the entruster to a buyer in ordinary course of business.

(3) " Entrusting " includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor's disposition of the goods have been such as to be larcenous under the criminal law.

[ Note: If a state adopts the repealer of Article 6-Bulk Transfers (Alternative A), subsec. (4) should read as follows :]

(4) The rights of other purchasers of goods and of lien creditors are governed by the Articles on Secured Transactions (Article 9) and Documents of Title (Article 7).

[ Note: If a state adopts Revised Article 6-Bulk Sales (Alternative B), subsec. (4) should read as follows :]

(4) The rights of other purchasers of goods and of lien creditors are governed by the Articles on Secured Transactions (Article 9), Bulk Sales (Article 6) and Documents of Title (Article 7).

[ Note: As amended in 1988. ]

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Law of Contract- II

Passing of Property under the Sale of Goods Act, Seller- Buyer Duties, Important Case Laws

The phrase “passing of property in the goods” implies “transfer of ownership in the goods” which has been provided under the Sale of Goods Act, 1930. The passing of property is one of the important concept related to the contract for sale of goods and property. This article deals with several aspects of the concept by covering the rules for the passing of ownership and the various contracts in which the delivery of goods is done through ships.

Introduction

In a contract for sale of goods or property, the ownership of such goods or property is also passed to the buyer. It is important to determine the exact point at which the property is passed from seller to the buyer as the risk involving the property depends on it. Thus, the following shall be determined:

a) The exact point of time when the property in the goods is passed from the buyer to the seller.
b) The point of time at which risk passes on to the buyer from seller.
c) The time when right of ownership and possession is passed on to the buyer by seller.

The three stages involved in the performance of contract of sale of goods are:

1) Transfer of property in goods (Section 18 to 25)

2) Transfer of possession of goods (Section 26)

3) Transfer of title (Section 27-30)

Rules relating to Passing of Property

1) Passing of risk (Section 26): The section provides the goods, unless the property is transferred to the buyer, shall remain with the seller. As soon as the property is transferred to the buyer, the goods are at the buyer’s risk whether the goods have been delivered or not. But, if delivery is delayed due to the fault of either party, the risk lies with the party at fault. Therefore, ‘property’ and ‘risk’ goes simultaneously.

2) Rules as to the passing of property in the goods (Section 18-25): The general rules relating to the transfer of property in the goods are:

a) Ascertainment of goods (Section 18): The property in the goods cannot be transferred by the seller to the buyer if the contract for sale is of ascertained goods. Therefore, the goods must be ascertained for transfer of property in the goods.
b) The intention of parties [Section 19(1)]: The property in the goods is passed to the buyer when both the parties intend to do so. The terms of the contract, conduct of parties and circumstances of case shall be considered for determining the intention of the parties.

3) Specific Goods (Section 20-22): Rules relating to the transfer of property in specific goods are provided under Section 20 to 22 which are as follows:

a) Goods in Deliverable State (Section 20) : A state in which a buyer is bound to take delivery of the goods is known as a deliverable state. When a contract for transfer of property in the goods is unconditional, the transfer of property in the goods is said to be done when such contract is made.
b) Goods to be put in deliverable state (Section 21): In some contracts, the seller is supposed to do something with the goods for putting them in deliverable state, and the property in the goods is not said to be transferred unless such thing is done to the goods and the buyer is given notice of the same.
c) Price of goods ascertained through weighing (Section 22): Where the price of the specific goods in a contract of sale is to be determined by weighing, measuring or some other method, the property in the goods is not said to be passed unless such weighing, measuring or the method is used for ascertainment of price and buyer is given notice of the same.

4) Unascertained goods (Section 23): In a contract for sale of unascertained goods by description, the property in the goods passed on to the buyer if the goods of the said description are in deliverable state and are unconditionally appropriated to the contract by the buyer with the consent of seller or vice-versa. The consent can be either express or implied and can be given after or before the appropriation is done.

As per a contract, if the goods are delivered to the buyer, carrier or bailee who doesn’t have a right of disposal (named by a buyer or not) by the seller, it is assumed that he has unconditionally appropriated the goods to the contract.

5) Goods sent on approval basis (Section 24): When the goods are delivered to the buyer on specific terms i.e. ‘approval’, ‘sale on return’ or any other such term, the property is said to be transferred when:

a) The buyer indicated his approval or acceptance to the seller;
b) The buyer acts in a way which indicates adoption of the transaction;
c) The buyer retains the goods even after expiry of fixed period.

6) Reserving right of disposal (Section 25): If a seller reserves a right to dispose the goods until fulfillment of certain conditions, then the property in the goods cannot is not transferred to the buyer until such conditions are fulfilled even if the goods are specific or subsequently appropriated.

Contracts Involving Sea Routes

Where the contracts are for sale involving sea routes, there are special clauses and conditions prepared keeping in mind the international customs and practices of merchants:

A) Free Alongside Ship Contracts: In FAS contracts, the property in the goods sold passed to the buyer when the seller delivers the goods alongside the ship whose name has been mentioned in the contract of carriage between the parties. The seller’s and buyer’s duties under such contracts are as following:

Seller’s Duties :

Delivery of goods alongside the ship.
Notify the buyer of delivery alongside the ship.

Buyer’s Duties :

Arrangement for affreightment contract.
Notify the seller of the ship name and delivery alongside the ship.
Bear risks and pay charges for the goods delivered alongside the ship.
B) Free on board Contracts: Under FOB contracts, if a seller agrees to sell goods, then the seller have to put the goods on a ship on behalf of buyer, at his own expenses under the contract of carriage by sea for transmitting the goods to buyer.

Seller’s duties:

Delivery of goods on the ship named by buyer. Once the goods are put on a ship, they are at buyer’s risk. The seller’s duty ends once he delivers goods to the ship at his own expenses.
Notify the buyer about the shipping of goods. The notification is in order to enable the buyer to protect the goods against loss during transmission of goods. If the seller fails to notify the buyer, the goods will be at his risk.

Buyer’s Duties

Arrange for the contract of aafireightment;
To tell the seller the name of the ship through which the goods are delivered.
Bear risks and charges relating to delivery of goods on ship.

The property in the goods is said to be passed on to the buyer when the goods are delivered. If the buyer fails to name a ship for transfer of goods, the seller can sue the buyer for the non-acceptance of goods but he cannot sue for the price.

C) Cost, Insurance and Freight Contracts: When a seller agrees to sell goods, the price of goods shall include the price of goods, cost of insurance and freight. Such contracts are said to be performed when the documents, bill of lading, insurance policy, invoice, etc are delivered to the buyer through a bank. The bank transfers the documents at a charge. The seller is said to be the owner of goods till the time buyer receives the documents and pays for the goods.
D) Ex-Ship Contracts: Under these contracts, the seller delivers the goods from a ship arrived at the port of destination at his own expenses. The property in the goods is not said to be transferred until the goods are delivered to the buyer.

Case Laws relating to Passing of Propert-

Badri Prasad v. State of M.P: In this case, the court held that in the cases of sale of trees, the property in the goods is said to be transferred when the trees fell after they are being cut as they cannot be ascertained unless they fall.

Multanual Chempalal v. C.P. Shah & Co.: In this case, it has been held that section 26 of the Sale of Goods Act, the risk passes only when the property is passed but if there is a contract to the contrary, the risk passes before the title to the property is passed. Thus, the parties can enter into a contract which provides for passing of risk before the passing of property.

The Sale of Goods Act, 1930 provides for several aspects relating to the passing of property in a contract for sale of goods or property. There are several rules provided under Sections 18 to 25 of the Act through which rights and liabilities of the buyer and seller can be determined. Passing of property in the goods signifies the transfer of ownership in the goods which is a different concept from the possession of goods as possession only involves delivery or custody of goods.

What is Transfer of Property?

The Transfer of Property Act (ToPA), enacted on July 1, 1882, stands as one of the oldest and pivotal legal frameworks in the Indian legal system, addressing the intricacies of property transfers between buyers and sellers. In India, the Transfer of Property Act 1882 is highly significant as it regulates the act of transferring property from one individual to another. This legislation holds particular significance for individuals intending to transfer immovable assets such as land, homes, or plots. ToPA applies to diverse immovable property transactions involving individuals, companies, and organizations, excluding properties inherited or disposed of through wills. Encompassing mortgages, exchanges, gifts, sales, leases, and actionable claims, the act specifies that individuals over 18, mentally sound, and entitled to or authorized to dispose of property can initiate transfers. Emphasizing the need for written agreements, even for properties valued under 100 rupees, ToPA ensures lawful and transparent property transactions by establishing clear guidelines for various types of property transactions.

Key Takeaways: In a sale of goods, the property passes when parties intend it to pass, as per the Sale of Goods Act 1930. The general rule is that property transfers when goods are intended to be transferred, even if delivery is postponed. If goods are sold “specifically,” property passes when the parties intend, and if not specified, when the contract is made. Risk follows property, so the buyer bears the risk from the time the property is transferred, unless otherwise agreed upon.

Table of Content

What is Passing the Property in Goods?

Exact time of passing of property , rules regarding transfer of property, transfer of property under sale of goods act 1930- faqs.

Property in goods is distinct from possession, denoting ownership rather than mere physical custody. In chattel, legal rights fall into two categories: possession and ownership. Ownership aligns with general property in goods, separate from possession. The transfer of property doesn’t automatically confer ownership, as exemplified by a scenario where A sells and delivers the title deed of goods to B but withholds possession. Notably, property in goods can pass before possession, contingent on prerequisites like ascertaining goods and putting them in a deliverable state. Passing, in this context, refers to the transfer of ownership. The timing of this transfer isn’t fixed by law; it depends on the circumstances outlined in the contract. Property can be transferred by consent or at various times as specified in the contract. While no fixed time is mandated, the seller must dispatch the goods within a reasonable time, and the buyer should demand delivery within a reasonable timeframe, with reasonableness determined by the specific circumstances.

1. Risk Associated with Ownership: When a contract of sale is made, the issue of bearing the risk in case of destruction or damage to goods arises. As per Section 26 of the Sale of Goods Act of 1930, the general rule is that the goods remain at the seller’s risk until they pass to the buyer. However, this rule is subject to the agreement between the parties, allowing them to decide when the risk will pass differently from the property. Determining the agreed-upon moment for risk transfer is crucial for buyer and seller to avoid disputes.

2. Action Against Third Party: In cases where a third party causes actionable injury to the goods, only the person with ownership can sue the third party. The term “third-party” refers to anyone other than the buyer or seller. However, either party, with the other’s consent, can sue for the benefit of whomever it may concern. If a third party suffers damages due to the goods, they can sue the owner at that particular time, emphasizing the significance of determining the moment of passing ownership. This underscores the importance of clear communication and consent between the buyer and seller for potential legal actions involving third parties.

3. Action by Third Party: When goods cause harm to a third party, they can only sue the person who owns the goods at that specific time. Even if the possession of the goods changes hands, understanding when the property in the goods; i.e., ownership, passes is crucial for legal clarity. The third party’s ability to seek legal recourse is contingent upon the accurate determination of ownership transfer, highlighting the need for transparency in transactions.

4. Remedy to Unpaid Seller: Section 55 allows an unpaid seller to sue for the price of the goods. Regardless of delivery, if the buyer wrongfully neglects or refuses to pay the price, the seller can sue for the price, underscoring the importance of determining the moment of passing ownership. Having a clear understanding of the ownership transition is crucial for the unpaid seller to exercise their legal rights and seek appropriate remedies.

5. Insolvency of Seller: In cases of seller insolvency, the ability of the receiver to take over the property depends on ownership. The receiver may not claim the goods if the seller becomes insolvent before delivery. Determining the precise moment of passing ownership is crucial, especially when insolvency occurs before delivery. This emphasizes the need for proactive measures, such as contractual agreements and legal documentation, to protect the interests of both parties in cases of insolvency.

6. Insolvency of Buyer: Similarly, when the buyer becomes insolvent, it is vital to establish whether the property in the goods has passed to the buyer. If the buyer has ownership, the receiver can take over the goods due to insolvency, emphasizing the need to pinpoint the exact moment of passing ownership. Understanding and documenting the ownership transfer becomes crucial for the seller to navigate potential complications in the event of buyer insolvency.

1. Where Goods Are Specific or Ascertained: Specific goods refer to those identified and agreed upon at the time of a sale contract, while ascertained goods become known to a certain extent after the contract. Section 19 of the Sale of Goods Act emphasizes that the transfer of property in specific or ascertained goods occurs when intended by the parties. The determination of intention involves considering the contract terms, parties’ conduct, and circumstances. The flexibility of the law allows parties to mutually decide when ownership is transferred, be it at the time of delivery, payment, or other agreed-upon points.

2. Rules for Ascertaining the Intention of the Parties: When dealing with specific goods in a deliverable state, not in a deliverable state, or requiring further action for price ascertainment, the parties’ intention determines property transfer time. Section 20 states that if specific goods are in a deliverable state and the sale is unconditional, ownership transfers when the contract is made. Sections 21 and Section 22 outline scenarios where goods are not in a deliverable state and the seller needs to act for price ascertainment. A clear understanding of these rules is crucial to avoid disputes and ensure smooth transactions.

3. Where Goods Are Unascertained, or Future Goods: For unascertained or future goods, the Sale of Goods Act highlights that ownership transfers once the goods are identified or ascertained and appropriately set apart for delivery. Ascertainment of goods, as per Section 18 , involves establishing the identity of goods, and Section 23 emphasizes unconditional appropriation for the transfer of ownership. These provisions underline the importance of a clear understanding of when the goods are deemed ascertained or appropriated. Parties must fulfill the conditions of ascertainment and appropriation to transform an ‘ agreement to sell’ into a ‘sale,’ ensuring legal clarity in ownership transfer.

4. Where Goods Are Sent on Approval or ‘on Sale or Return: Section 24 of the Sale of Goods Act outlines scenarios where ownership in goods delivered on approval or ‘on sale or return’ terms passes to the buyer. The buyer’s actions, such as approval, adoption of the transaction, or failure to return within a specified or reasonable time, determine ownership transfer. Recognizing these conditions is crucial for both buyers and sellers when engaging in transactions with such terms.

5. Risk Prima Facie Passes With Property: Section 26 establishes the general rule that risk prima facie passes with property, emphasizing that risk follows ownership. This means the owner bears the burden of loss, irrespective of possession or payment status. While exceptions exist, understanding this fundamental principle is essential for both sellers and buyers to navigate potential losses associated with goods. Parties should be mindful of the general rule that ‘risk follows ownership’ as they engage in transactions, considering exceptions to ensure comprehensive risk management.

In conclusion, the Sale of Goods Act 1930 provides a comprehensive framework governing the transfer of property in goods, ensuring clarity and fairness in commercial transactions. The Act meticulously outlines the rules for determining when the property in goods is transferred, either immediately or at a later time. The buyer’s rights and obligations are clearly delineated, emphasizing the significance of examining the terms of the contract and the intention of the parties involved. The Act contributes to the smooth functioning of the marketplace by establishing a legal foundation for property transfer, facilitating commerce and trade. Additionally, the provisions regarding risk, delivery, and conditions ensure a balanced and equitable relationship between buyers and sellers. The Sale of Goods Act 1930, with its detailed provisions, remains a cornerstone in regulating property transfers, fostering transparency and reliability in commercial dealings.

What are the steps for a transfer deed in India?

To transfer property title in India, the transferor needs to draft the transfer of possession title on stamp paper. Subsequently, the transfer deed should be attested by two witnesses before its registration. The final step involves registering the gift deed at a subregistrar’s office, and once registered, the transfer becomes irrevocable.

Elaborate on Section 5 of the Transfer of Property Act.

Section 5 of the Transfer of Property Act represents “transfer of property” as an act wherein an individual conveys property, either presently or in the future, to one or more other individuals, or themselves, or one or more other living persons.

Are there properties that cannot be transferred?

Yes, as per Section 6 of the Transfer of Property Act, certain rights and ownership cannot be transferred from one person to another. These include the tenure of services, religious office, the right of preemption, and more. Any attempt to transfer such rights is considered invalid.

Who is not competent to transfer property?

A minor, being deemed incompetent to contract, cannot transfer property. Section 7 of the Transfer of Property Act of 1882 addresses the competency of a transferor, not the transferee. Consequently, a minor can act as a transferee but not as a transferor.

Is partition considered a transfer of property?

No, ‘partition’ of joint property does not qualify as a ‘transfer of property’ between individual co-parceners or co-tenants. In a transfer, the transferee acquires rights and title to the property that did not previously vest in them. Partition among joint property holders does not fall under this category.

References:

Consumer Affairs Department
Legislative Department

Note: The information provided is sourced from various websites and collected data; if discrepancies are identified, kindly reach out to us through comments for prompt correction.

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Transfer of property in goods

Meaning of Passing of Property/Transfer of Property.

Passing of property implies transfer of ownership and not the physical possession of goods.For example,where a principal sends goods to his agent,he merely transfers the physical possession and not the ownership of goods.Here,the principal is the owner of the goods but is not having possession of goods and the agent is having possession of goods but us not the owner. Significance of Transfer of Property The time of transfer of ownership of goods decides various rights and liabilities of the seller and the buyer.Thus,it becomes very important to know the exact time of transfer of ownership of goods from seller to buyer to answer the following questions:

Who shall bear the risk? It is the owner who has to bear the risk and not the person who merely has the possession.
Who can take action against third party? It is the owner who can take action and not the person who merely has the possession.
Whether a seller can sue for price? The seller can sue for the price only if the ownership of goods has been transferred to the buyer.
In case of insolvency of a buyer whether the official receiver or assignee can take the possession of goods from seller? The Official Receiver or Assignee can take the possession of of goods from seller only if the ownership of goods has been transferred to the buyer.
In case of insolvency of a seller whether the official receiver or assignee can take the possession of goods from buyer? The official receiver or assignee can take the possession of goods from buyer only if the ownership of goods has not been transferred to the buyer. Rules relating to Passing of Property/Transfer of Ownership from seller to buyer For the purposes of ascertaining the time at which the ownership is transferred from seller to the buyer,the goods have been classified into the following three categories: a) Specific or ascertained goods Specific goods mean goods identified and agreed upon at the time when a contract of sale is made.[Section 2(14)] b) Unascertained goods c) Goods sent ‘on approval’ or ‘on sale on return’ basis. Performance of the Contract It is the duty of the seller and buyer that the contract is performed. The duty of the seller is to deliver the goods and that of the buyer to accept the goods and pay for them in accordance with the contract of sale. Unless otherwise agreed, payment of the price and the delivery of the goods and concurrent conditions, i.e., they both take place at the same time as in a cash sale over a shop counter. Delivery (Sections 33-39) Delivery is the voluntary transfer of possession from one person to another. Delivery may be actual, constructive or symbolic. Actual or physical delivery takes place where the goods are handed over by the seller to the buyer or his agent authorized to take possession of the goods. 1.Constructive delivery takes place when the person in possession of the goods acknowledges that he holds the goods on behalf of and at the disposal of the buyer. For example, where the seller, after having sold the goods, may hold them as bailee the buyer, there is constructive delivery. 2.Symbolic delivery is made by indicating or giving a symbol. Here the goods themselves are not delivered, but the “means of obtaining possession” of goods is delivered, e.g, by delivering the key of the warehouse where the goods are stored, bill of lading which will entitle the holder to receive the goods on the arrival of the ship. Rules as to delivery The following rules apply regarding delivery of goods: (a) Delivery should have the effect of putting the buyer in possession. (b) The seller must deliver the goods according to the contract. (c) The seller is to deliver the goods when the buyer applies for delivery; it is the duty of the buyer to claim delivery. (d) Where the goods at the time of the sale are in the possession of a third person, there will be delivery only when that person acknowledges to the buyer that he holds the goods on his behalf. (e) The seller should tender delivery so that the buyer can take the goods. It is no duty of the seller to send or carry the goods to the buyer unless the contract so provides. But the goods must be in a deliverable state at the time of delivery or tender of delivery. If by the contract the seller is bound to send the goods to the buyer, but no time is fixed, the seller is bound to send them within a reasonable time. (f) The place of delivery is usually stated in the contract. Where it is so stated, the goods must be delivered at the specified place during working hours on a working day. Where no place is mentioned, the goods are to be delivered at a place at which they happen to be at the time of the contract of sale and if not then in existence they are to be delivered at the place at which they are manufactured or produced. (g) The seller has to bear the cost of delivery unless the contract otherwise provides. While the cost of obtaining delivery is said to be of the buyer, the cost of the putting the goods into deliverable state must be borne by the seller. In other words, in the absence of an agreement to the contrary, the expenses of and incidental to making delivery of the goods must be borne by the seller, the expenses of and incidental to receiving delivery must be borne by the buyer. (h) If the goods are to be delivered at a place other than where they are, the risk of deterioration in transit will, unless otherwise agreed, be borne by the buyer. (i) Unless otherwise agreed, the buyer is not bound to accept delivery in installments. Acceptance of Goods by the Buyer Acceptance of the goods by the buyer takes place when the buyer: (a) intimates to the seller that he has accepted the goods; or (b) retains the goods, after the lapse of a reasonable time without intimating to the seller that he has rejected them; or (c) does any act on the goods which is inconsistent with the ownership of the seller, e.g., pledges or resells. If the seller sends the buyer a larger or smaller quantity of goods than ordered, the buyer may: (a) reject the whole; or (b) accept the whole; or (c) accept the quantity be ordered and reject the rest. If the seller delivers with the goods ordered, goods of a wrong description, the buyer may accept the goods ordered and reject the rest, or reject the whole. Where the buyer rightly rejects the goods, he is not bound to return the rejected goods to the seller. It is sufficient if he intimates the seller that he refuses to accept them. In that case, the seller has to remove them. Installment Deliveries When there is a contract for the sale of goods to be delivered by stated installments which are to be separately paid for, and either the buyer or the seller commits a breach of contract, it depends on the terms of the contract whether the breach is a repudiation of the whole contract or a severable breach merely giving right to claim for damages. Suits for Breach of Contract Where the property in the goods has passed to the buyer, the seller may sue him for the price. Where the price is payable on a certain day regardless of delivery, the seller may sue for the price, if it is not paid on that day, although the property in the goods has not passed. Where the buyer wrongfully neglects or refuses to accept the goods and pay for them, the seller may sue the buyer for damages for non-acceptance. Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer may sue him for damages for non-delivery. Where there is a breach of warranty or where the buyer elects or is compelled to treat the breach of condition as a breach of warranty, the buyer cannot reject the goods. He can set breach of warranty in extinction or diminution of the price payable by him and if loss suffered by him is more than the price he may sue for the damages. If the buyer has paid the price and the goods are not delivered, the buyer can sue the seller for the recovery of the amount paid. In appropriate cases the buyer can also get an order from the court that the specific goods ought to be delivered. Anticipatory Breach Where either party to a contract of sale repudiates the contract before the date of delivery, the other party may either treat the contract as still subsisting and wait till the date of delivery, or he may treat the contract as rescinded and sue for damages for the breach. In case the contract is treated as still subsisting it would be for the benefit of both the parties and the party who had originally repudiated will not be deprived of: (a) his right of performance on the due date in spite of his prior repudiation; or (b) his rights to set up any defense for non-performance which might have actually arisen after the date of the prior repudiation. Measure of Damages The Act does not specifically provide for rules as regards the measure of damages except by stating that nothing in the Act shall affect the right of the seller or the buyer to recover interest or special damages in any case were by law they are entitled to the same. The inference is that the rules laid down in Section 73 of the Indian Contract Act will apply.

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What Is Transfer of Rights in the Property?

Transfer of rights in the property rights is one of the foundations of property ownership rights. 3 min read updated on February 01, 2023

Updated November 4, 2020:

Transfer of rights in the property rights is one of the foundations of property ownership rights. It's possible for a property owner to give away some rights but still hold onto ownership. One example of this is when a property owner gives someone an easement to get to another piece of property. Transferring ownership entirely is another option, and it means giving up all basic rights, such as the right of possession, usage, and exclusion.

Conveyancing

The term conveyancing refers to the process of transferring a piece of property to a new owner. When an attorney is part of the conveyancing process, he or she listens to what the buyer wants and what the seller wants and then turns those desires into a legal response to those desires by preparing and filing property ownership deeds or other forms of ownership paperwork. The attorney handling the conveyance determines which document is right for the specific transaction, who needs to sign the document, what form of title the new owners are going to hold, and which rights related to property ownership are going to be transferred.

Ways to Transfer Property Ownership

There are a number of ways to transfer property ownership rights to someone else. It is possible to transfer ownership whether the thing is of little financial value or a very costly property, such as high-value real estate. The high-value properties usually have more complicated procedures for transferring ownership. The methods for transferring ownership of property are:

Basic property transfers
Relinquishing your rights
Mortgaging the property

Basic Property Transfers

This is the type of property transfer you see when buying lower-priced goods, like groceries. No one is required to sign a bill of sale or any kind of contract with this type of transaction. Money changes hands. One party gets the property. The other typically gets a receipt. The low value of the goods makes the paperwork unnecessary, but when the value of goods is higher, more paperwork is needed to transfer ownership of goods. If you're dealing with real estate, though, it's more complicated and a bill of sale is needed. A bill of sale:

Represents an enforceable agreement
Has to be either notarized or witnessed, based on each state's laws

Transferring Property as a Gift

Giving or receiving the property as a gift is a way to transfer ownership. With this type of ownership transfer, the owner who acts as a donor doesn't get paid the full value of the property, and it is handled differently than a property ownership transfer that occurs when a property is sold. Property transferred as a gift is typically handled within a family unit. A witness or notarization is required when the gift is real estate. If the property is taxable, the donor usually pays the tax, but sometimes the recipient does.

Relinquishing Property to Transfer Ownership

Relinquishing rights to real estate can be an enforceable way to transfer property. Different areas handle relinquishments differently, and documentation is always required to make the transfer official.

Transferring Property Through a Will

When a will is used to transfer property , the transfer takes place when the donor passes away. However, neither the heir-apparent, a relative, not anyone else can complete the transfer on the possibility of inheriting. If someone tries to transfer property he or she expects to get via inheritance while the donor is still living, the contract becomes void. It isn't possible to contract to transfer ownership of property you don't own, even if you hope to own it sometime in the future. It's against the law to try to enforce a will prematurely.

Transferring Property by Mortgage or Deed

A mortgage transfers the legal title to a property from the mortgagee to the mortgagor in some states. In other states, a mortgage is a lien on the property, and the mortgagor can sell the property if the mortgagee fails to pay the debt. When an owner transfers property by deed, the deed identifies the new property owner and the seller. The deed also describes the property and must be signed by the owner who is getting rid of the property.

If you need help with the transfer of rights in the property, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Make Your Own Pathway….

Sales of Goods Act, 1930

TRANSFER OF OWNERSHIP: The Sale of Goods Act 1930 Notes

TRANSFER OF OWNERSHIP :Transfer of property from seller to Buyer (Section 20-22)

Goods are Ascertained
Appropriation of Goods Unconditionally
Deliverable state Price determined at the time when contract is made
Deliverable State Price not determined after determination of price
Non – deliverable State after completion of process to make it deliverable.
On approval.
Adopting the transactions.
Retains without notice of rejection for a long time.
Contract is for specific goods.
Goods are in deliverable state.
Goods are not required to be weighed or measured for determining price.

Example : A sold to B, 100 bales of cotton lying in his godown. Before the bales could be identified and separated, all bales were destroyed in fire. Here, seller is liable for damage because ownership is not transferred.

Contents of Article

If the goods are not ready in deliverable state at the time of making contract of sale, ownership of goods is transferred after formation of contract of sale when following conditions are satisfied;

Goods are put in deliverable state by seller.
Fact that the goods are put into deliverable state has come to knowledge to the buyer.

Example: Certain quantity of oil was purchased by A. The oil was to be filled in tins. B filled up some of the tins and informed A to take the delivery. In the meantime, a fire destroyed the entire quantity of oil. Held, A will bear the loss of the oil which was filed in the tins and the seller must bear the loss of the balances.

If the goods are not weight or measured at the time of making contract of sale, ownership of goods is transferred after the formation of contract of sale when the following conditions are satisfied.

Contract is for specific goods
At the time of formation, price is not determined. It is determined later by weighed or measurement.
Goods are put in deliverable state by the seller.
Fact that the goods have been weighed or measured in order to determine price has come to knowledge of buyer.

Example: A sold 10 kg wheat. The wheat was to be weighed. Before the wheat was weighed, it was carried away by the flood. Held, the ownership of the wheat left with the seller and it did not pass to the buyer.

Transfer of ownership in the case of unascertained goods – Sec 18 and 23

In the case of un-ascertained goods, when both parties come to know which particular goods shall be delivered, ownership is transferred.
Ascertainment is first step in transfer of ownership. It means process of identification and setting aside goods from a huge mass of goods.
Generally, it is made by seller , (unilateral act).

Appropriation :

For property to pass u/s 23, the following conditions must be satisfied –

Goods of the description mentioned in the contract must be produced or obtained.
The must be in a deliverable state, i.e. the Goods are in such state that the Buyer would, under the contract, be bound to take delivery of them.
Delivers the Goods to Buyer or a carrier or other bailee for their transmission to Buyer and
does not reserve the right of disposal. [Sec. 23(2)]
The assent of the parties may be given expressly or impliedly and can be given either before or after the appropriation.
Example: A having a quantity of sugar in bulk, more than sufficient to fill 20 bags, contracts to sell to B 20 bags of it. After the contract A fills 20 bags with the sugar, given notice to B that the bags are ready and requires him to take them away. B says he will take them as soon as he can. By this appropriation by A, and assent by B, property in the sugar passes to B.

Contract to sell unascertained goods is not complete sell, it is agreement to sell.

Example: 20 bags of sugar out of a bulk were agreed to be sold. 4 bags of sugar were filled up and taken away by the buyer. Subsequently, the seller filled up 16 bags and informed the buyer. The buyer replied that he will take delivery as soon as possible. However, before the buyer could take their delivery. Goods were lost. Held, the buyer was responsible as the ownership had passed to the buyer.

Transfer of ownership in Case of Goods Sent on Approval or on sale or Return Basis – Sec. 24

It means buyer has the option either to return goods. Here, property in goods doesn’t pass from seller to buyer:

Example: Certain jewellery was delivered to a buyer on sale or return basis. The buyer pledged the jewellery. Held, the buyer had adopted the transaction and as such property had passed and the seller could not recover the jewellery from the Pawnee.

Right to disposal of Goods Sec. 25

Where the railway receipt or the bill of landing 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.

Deemed right of reservation Sec. 25

The seller may reserve the right of disposal under the following modes –

Reservation of right of disposal

Shipment or Railway delivery : By making the Goods deliverable to the order of the Seller or his agent
Drawing of B/E on buyer : By Seller drawing a bill for the price and making it acceptable by the Buyer.

Passing of Risk Sec. 26

The general rule is that risk passes with ownership. We can say that risk and ownership and ownership to together. However, express agreement between parties may provide otherwise.
Possession of goods is immaterial for risk.
When delivery is delayed because of fault of any party, he is liable for risk.
Sometime, risk is based upon custom or usage of trade.
Where the delivery of goods has been delayed due to the fault of buyer/seller, goods are at the risk of the party in fault.

Sale by Non – Owners or Transfer of Title by Non – Owners – Sec 27 – 30

The general rule is expressed by maxim ‘Namodat quod non habet’ which means no one can give what he does not himself posses. If seller’s title is defective, then buyer’s title will be defective.
Alternatively, we can say that the seller can’t give a better title to the buyer than be himself has.

The following are the exceptions to the above general rule:

Sale of Estoppel [Sec. 27]:

Where the owner by his conduct or by his act leads the buyer to believe that the seller has the authority to sell and induces the buyer to buy the goods, he shall be estopped from denying the fact that seller had no right to sell the goods.

Agent must be in possession of goods or documents of title.
Agent has sold goods in ordinary course of business.
Buyer has acted in good faith.
Buyer has no knowledge that seller had no authority to sell.

Example: A entrusted his car to a mercantile agent to receive offers and not to sell. A also delivered signed documents to the agent. On the basis of these documents, the agent pretended to the buyer that he had authority to sell the car and thus, the car was sold. Held, the owner was estopped from denying buyers title.

A mercantile agent means an agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to raise money on the security of goods [Section 2(9)].

Sale by one of the joint owners – Sec 28

One of the joint owners can sale goods if following condition are satisfied.

Goods are in sole possession of one of the joint owner.

Example: A and B Jointly purchased a car. The car was in the possession of A with the consent of B. Later on A sold the car to an innocent purchaser. The purchaser will get a good title.

Sale by person in possession under voidable contract
Goods must have been sold before contract is rescinded.

Example: A purchased a watch from B under fraud. A sold the watch to C, who bought it in good faith. C gets goods title.

Sale by seller in possession after sale – Sec 30
Seller continuous to be in possession of goods even after sale.
Seller resells goods to new buyer.
New buyer buys without notice to prior sell.

Example: A sells certain goods to B and promises to deliver the goods the next day. Before the delivery, A sells and delivers the goods to C, who buys them in good faith and without notice of the prior sale to B, C gets a good title to the goods, not with standing that the property had, before he purchased, passed to B.

If the owner of goods has declared insolvent and his goods, is sold by official receiver or assignee or liquidator.
Sale by finder of goods (Sec.169 of IC Act 1872).
The owner can’t be found or found but refuse to pay lawful charges to finder.
The Goods are perishable in nature or in danger. To save goods from loss, finder can sale it.
Lawful charges of finder amount as 2/3 of its original value.

Sale by pawnee or pledge(Sec.176 of IC Act 1872).

If there is default on part of payment of price or performance within time. Reasonable notice is given by pawnee or pledge

CONSPIRACY IN TORTS| Free Law Notes

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March 11, 2020 > Turkey > Transport

KILINÇ LAW & CONSULTING | View firm profile

A. INTRODUCTION

When goods are accidentally lost or damaged during an international sales contract is being performed, the question is; who shall bear this loss? Is it the seller, the buyer or the carrier?

United Nations Convention on Contracts for the International Sale of Goods 1980 (“CISG”) is a United Nations treaty that provides applicable laws for sales of goods between companies located in different countries. Since the companies are not performing only domestic sale contracts but do much of international sale contracts also, it is inevitable to comply with the unification rules of CISG.

CISG has became a part of Turkish legislation as of August 1st, 2011. Turkey’s accession to CISG creates an important common legal framework for sales transactions between Turkey and other contracting countries.

Incoterms, developed by the International Chamber of Commerce, is a set of rules that contracts may incorporate to specify parties’ respective rights and obligations as to transportation and delivery of goods. Hence, an international sales contract may be subject to CISG and may incorporate Incoterms.

Determining the risk transfer while drafting an international sales contract requires the knowledge on CISG provisions and also Incoterms, since they are in need to be embraced together.

B. TRANSFER OF RISK WITHIN INCOTERMS 2010

All international trade transactions have different characteristics and features and these features usually depend on international trade terms. These international trade terms were standardised by The International Chamber of Commerce (ICC), and called “INCOTERMS”. The traders must take Incoterms; such as the most common terms “FOB”, “CIF” and “Ex-Ship”; into consideration whilst deciding on the transportation of goods, since it is the easiest and most common in international contracts.

i. FOB Contracts

FOB (Free on Board) contract is used within each type of transport systems such as carriage of goods by rail, road, or air and also sales which include sea-waterway delivery methods. The principle of the FOB contract is that property and risk passes to the buyer, who bears all the other costs, when the goods cross the ship’s rail.

ii. CIF Contracts

The transfer of risk in CIF (Costs, Insurance and Freight) contracts is conditioned to transfer of property. [1] The risk of loss of or damage to the goods passes when the goods are on board the vessel. However, the seller must contract for and pay the costs and freight necessary to bring the goods to the destination. The seller is also responsible for insuring to cover the risk of loss or damage during carriage.

iii. Ex Ship Contracts

Ex-ship contract was also the part of INCOTERMS 2000 before removed by INCOTERMS 2010. A main difference is that Ex-Ship contract is finalized when the actual delivery is done to the buyer, and other methods of delivery are not accepted even though they are accepted in other trade terms such as CIF. [2] Due to the importance of actual delivery, risk and property do not pass to the buyer until the goods are stated as available in delivery at port of discharge. Here, the buyer has no right over the goods until the actual delivery is developed. [3]

C. THE BASIC RULES OF CISG ON TRANSFER OF RISK

The CISG regulates transfer of risk between Articles 66 and 70 which ensure the moment of transfer of risk at the the delivery as a main rule. CISG provisions on the passage of risk can be applied to the contracts only should the parties did not make any previous express or implied arrangement on the issue.

General rule is that; when the risk passes to the buyer the buyer is obliged to pay the price even if the goods were never received, on the contrary, in case the goods were lost or destroyed before the risk was transferred to the buyer, the reponsibility of the loss remains on the seller. However, CISG detailed the possible disagreements and regulated the transfer of risk in many levels.

The first rule is ensured within Article 66 of CISG which basically indicates that buyer must fulfill its obligation to pay the price. However, in case the seller has caused any loss or damage by an act or neglect, the buyer has the right not to make the payment. Although the provision seems like it is against the seller, in pratice, sellers usually work with carriers. Hence, should the damage is caused by the carrier and the risk of loss has passed to the buyer, buyer may be faced with an obligation to pay, even though the goods are delivered to them properly.

As per Article 67 of CISG, should the parties does not agree for the goods to be handed over at a particular place, then the risk passes to the buyer when goods are handed over to the first carrier and if the particular place was indicated within the contract, then the risk passes when the goods are delivered at that specific place.

Article 67 also regulates the identification of the goods. In other words, the risk passes to the buyer when distinction is made, otherwise the seller is responsible for the risk of loss or damage.

Article 68 of CISG regulates the goods sold in transit; which means the goods which were kept in a ship, train or truck. The first sentence of the aforementioned article states the the rule that the risk passes to the buyer from the moment that the contract is concluded. Then it amends the rule in case the goods are sold in transit and the risk passes at the moment the goods are loaded on ship. The question is whether the buyer is obliged to bear the risk and responsibility of the payment in case the goods are defected after the shipment? In such case, the buyer may need to find the answer within Incoterms or sales contract which shall supersede the aforesaid rule.

Accordingly with CISG provisons, when the buyer receives the goods from the seller’s place, the risk passes to the buyer from the time he takes over the goods. Subsequently, for instance, if the cargos are placed at the buyer’s disposal and he delays or fails to take delivery in due time, he thus breaches a contract by not taking them over; however, the risk passes to him at that moment. [4] If the place of delivery is not the seller’s premises, then Article 69 shall be taken into account. In case the seller hands over the goods (i) at the buyer’s premises, or (ii) at a specified place or to a specified carrier; the risk passes to the buyer when the delivery date is due and the goods are placed at the buyer’s disposal. [5] Here, the seller should do all necessaries to enable the buyer take delivery. Also, the buyer should be aware that the goods are at his disposal.

Article 70 of CISG declares that Articles 67, 68 and 69 do not impair the remedies that the buyer has in the event of the fundamental breach of the contract done by the seller. Hence, in case the lack of conformity of goods the buyer shall terminate the contract. In this case, risk goes back to the seller retroactively. [6]

D. CONCLUSION

CISG and Incoterms become more of an issue together since CISG deals with a sale contract whilist Incoterms usually involve transportation rather than the contract. Incoterms do not regulate the situation where the loss or damage, that occurred after the risk, had passed, which is caused by the act or omission on the part of the seller as regulated under CISG. However, while Incoterms are not enough to determine the risk conditions favourable, CISG provisions may also turn especially against to the seller.

By this reason, detailing the transfer of risk in sales contracts is of the utmost importance. Therefore, it is advisible to refer to both Incoterms and CISG in contracts cautiously in order to stay in a safer zone.

Başak Bektimur, Associate

[1] J.C.T. Chuah, Law of International Trade: Cross-Border Commercial Transactions (5th edition, Sweet&Maxwell,2013) 4-062. [2] J.C.T. Chuah, Law of International Trade: Cross-Border Commercial Transactions (5th edition, Sweet&Maxwell,2013) 2-025 [3] Yangtsze Indurance Association vs Lukmanjee [4] CISG 1980 [5] R. Adisornmongkon, Passing of Risk in International Sale Contracts under the CISG 114 [6] R. Adisornmongkon, Passing of Risk in International Sale Contracts under the CISG 116

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Moveable and Immovable Property under The TPA,1882

The Transfer of Property Act, 1882 is a civil legislation of immense significance owing to the vast number of properties related transactions taking place throughout the country. A uniform legislation was the need of the hour considering this factor, and this Act was drafted to serve the selfsame purpose. The Act came into existence on 1 st July, 1882 which gives for the regulations of transmission of property inter vivos i.e., among living things. Therefore, the Act does not cover the dimension of transfer of property in totality. Erstwhile, the transfer of immovable property was governed by the English laws. The Act of 1882, sets out the objectives and governs only the transfer which is made by the parties and not by the operation of law. However, the Act contains the provisions of transfer of both moveable and immoveable property but the major portion of the Act talks about the transfer of immovable property which is visible from the below mentioned paper. [1]

It is crucial to understand the meaning of the term “property” as applied in the Act. Property has been given a wider aspect covering both tangible material things, e.g., land and houses as well as rights which are not exercised over any material, e.g., a right to repayment of a debt. The word ‘transfer’ in the Act has also been used in a wider sense. It may mean either transfer of all the rights and interests in the property or transfer of one or more of subordinate rights in the property. [2]

Table of Contents

Property in its wider sense may include anything which has some value and over which the right of ownership may be exercised. In general terms, the property can be defined as the virtual or physical entity which is owned by a person jointly or severally. The definition of the property can be seen under the Benami Transactions (Prohibition) Act, 1988 which says:

“Property of any kind, moveable or immoveable, tangible or intangible and is inclusive of any right or interest in such property”. [3]

The very concept of property plays a crucial role in a human’s life, because a human cannot live without the use of material objects which are covered under the purview of property. The 1882 Act plays a crucial role in the statute book with the ultimate objective to render the system of transfer of immovable property a system of public transfer legislation. It is one of the legislation made in the 19th century to govern the property rights of individuals. [4]

The concept of moveable and immoveable property under the Indian laws is parallel to the concept of English law under which property is divided into two categories, real property and personal property. The real property means the property pertaining to specific recovery and freehold interests in land whereas the personal property means the property which involves a personal action and includes everything other than real property. Therefore, ‘property’ in its most comprehensive sense includes all legal rights of a person except his personal rights, which constitute his status or personal condition. [5]

Immoveable Property

The transfer under the TPA, 1882 deals with specific transfer pertaining to immoveable and moveable property. However, it is said that anything which excludes immoveable property is regarded as moveable property. Section 3 (2) of the Act states:-

“Immoveable property does not include standing timber, growing crops or grass’. [6]

Therefore, the Act does not have a comprehensive definition of immovable property and hence it can be concluded that it’s an unsatisfactory definition. Therefore, for the purpose of definition of immovable property we will refer to various other Acts where such definitions are defined.

The General Clauses Act of 1897 under Section 3(26) states that: “immoveable property shall include land any benefits arising out of land and also the things attached to the earth, or permanently attached to the earth”. Thus, the definition of immovable property is also not exhaustive. However, the definition has clarified on things “ attached to earth” which includes: [7]

a) “anything rooted in earth, it can be trees and shrubs”;

b) “imbedded in earth, things like walls or buildings”; or

c) “attached to what is so imbedded for the permanent beneficial enjoyment of that to which is attached”

This very definition of the General Clauses Act is applicable to the Transfer of Property Act as well and same was held in Babul Lal v. Bhawani [8]. Therefore, together they give a wider ambit to the definition of the term “immoveable property”. The benefit arising out of land would mean ‘right to catch fish, right to collect rent, any interest thereof, any income derived from that land will be considered as a part of immovable property.

Things rooted to the earth

Things rooted to the earth, means standing timber, growing crops or grass are not immoveable property, meaning that trees are excluded from the definition of immovable property. The main reason of the exclusion is that they are useful as timber only after their severance from land. The main thing is to determine the intention to cut down the tree from the middle and remove the tree permanently which is firmly attached to earth. In such case the latter one will be treated as ‘immoveable property’ and former as ‘moveable property’. [9]

Things imbedded in earth

Things embedded in earth herein, this would essentially include things made up by man or any non-natural objects embedded to earth. The property is treated as fixtures when it is firmly attached to the land. Buildings are the most appropriate example of the things imbedded to the earth.[10]

Further, the Registration Act, 1908 under Section 2(6) defines “Immovable Property” as the property which includes “land, building, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit arising out of land, and things attached to the earth or permanently fastened to anything which is attached to the earth but not standing timber, growing crops nor grass”. Therefore, it is implied that buildings are also covered under the definition of immovable property. [11]

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Moveable Property

The term moveable property has not been defined under the Act, in general parlance, it means anything which is easily moveable from one place to another without changing its structure or anything and without giving any harm to its surroundings can be said as moveable property. It is noted that moveable properties do not mandatorily require registration under the Act for the purpose of transfer. [12]

The definition stipulated under the Transfer of Property Act, 1882 for immovable property under Section 3 by excluding standing timber, growing crops and grass implies that these all are considered as moveable property, no specific definition of moveable property has been written under the act.[13] However, the General Clauses Act of 1897 under Section 3 clause 36 defines moveable property as “property of every description, except immoveable property” . [14]

Further adding to the definition under the Sale of Goods Act, which has defined moveable property as “moveable property includes every kind of property excluding actionable claims and money, it includes stock, shares, growing crops, grass, things attached to or forming a part of the land which are agreed to sale or under contract pertaining to sale.” [15]

The definitions together give a strong meaning to what is moveable property. Therefore, the framework of what constitutes a moveable property was necessary to determine the rights and duties in respect of transactions and also the tax liability of the individual under the tax provisions whenever the transactions is made in relation to property.

Stocks and Shares

Stocks and shares are considered as moveable property, they are the part of the company which is held by the person known as shareholder. The shareholder will have certain rights over the company which includes the right to vote in a general meeting of a company. These are transferable and come under the purview of moveable property. [16]

Further, standing timber, growing crops and grass are the exception to immovable property and are moveable property. These are segregated because of the benefits which arise when they are cut down and can be used for building material, for food and grass. Therefore, the property which is cut down the intention cutting down of that property has to be seen. Because, if such standing timber, tree or grass is fixed firmly and not removed then this property will be treated as immovable property and is removed (not from the grass root) then this property will be considered as moveable property. [17]

Actionable Claims and money

Actionable claims are excluded from the ambit of moveable property. The Transfer of Property Act, 1882 recognizes actionable claims as “claim to any debt, which is recognized by the Civil Court as a ground of relief to the aggrieved party in the court of law.” Other than debts which include mortgage or hypothecation or pledge of such property or any beneficial interest a person has to such property or any beneficial interest of the claimant into the respective property. Actionable claim can never be a moveable property because it’s a claim ascertainable in the court of law for the right to recover and not for the enjoyment purpose. The claimant can have the right to recover in the court of law by suit or through an action. [18]

For the purpose of money, money is not considered as good but a legal tender and it is understood that a legal tender cannot be exchanged for any other legal goods and that’s why it lacks transferability and hence cannot be covered under the Transfer of Property Act. [19]

The Transfer of Property Act, 1882 intended to amend the existing laws not to introduce new principles. It only transfers voluntarily. Transfer of property means transfer inter vivos i.e., transfer among living things, a property whether moveable or immoveable is transferred between two persons in different facts and circumstances and at different values. There are different laws and ways to determine it for the purpose of moveable property. The Sales of Goods Act is applicable for the purpose of immovable property, the Transfer of Property Act is applicable. The paper has provided the categorization of movable and immovable, the with the intention judiciary and the provisions enshrined in the statutes have clarified on what is considered to be moveable property and immovable property.

[1] N Pradhan, “Transfer of Property Act (TPA)”, Legal Service India, available at: http://www.legalserviceindia.com/legal/article-2117-transfer-of-property-act-topa-tpa-.html (last visited on Dec 1, 2020).

[2] Dhruvi Dharia, “Rules relating to transfer of property”, Law Times Journal , March 29, 2020.

[3] The Benami Transactions (Prohibition) Act, 1988, s.2(c).

[4] Jaya V.S (ed.), Property Law 594-595, available at: http://14.139.60.114:8080/jspui/bitstream/123456789/738/21/Property%20Law.pdf (last visited on Dec, 1, 2020).

[5] Raichand vs. Dattatrya, AIR 1964 Bom. 344.

[6] The Transfer of property Act, 1882, s. 3(2).

[7] The General Clauses Act of 1897, s.3(26).

[8] ALL 1912 LJ 776.

[9] Jagdish vs. Mangal Pandey, AIR 1986 All. 182.

[10] Punnayya vs. Venkatappa, AIR 1926 Mad. 343.

[11] The Registration Act, 1908, s.2(6).

[12] Lexforti, “Categorization of Immovable and Moveable Property”, June 27, 2020 available at: https://lexforti.com/legal-news/categorization-of-immovable-and-moveable-property/ (last visited on 2 Dec, 2020).

[13] The Transfer of property Act, 1882, s.3.

[14] The General Clauses Act of 1897, s. 3(36).

[15] The Sale of Goods Act, s. 2(7).

[16] Supra note 12.

[17] Shantabai vs. State of Bombay, 1959 1 SCR 265.

[18] Supra note 12.

[19] Re Mathur Lalbhai, 1901 25 Bom. 702.

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FACT SHEET: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices

President Biden’s economic plan is supporting investments and creating good jobs in key sectors that are vital for America’s economic future and national security. China’s unfair trade practices concerning technology transfer, intellectual property, and innovation are threatening American businesses and workers. China is also flooding global markets with artificially low-priced exports. In response to China’s unfair trade practices and to counteract the resulting harms, today, President Biden is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China to protect American workers and businesses. The Biden-Harris Administration’s Investing in America agenda has already catalyzed more than $860 billion in business investments through smart, public incentives in industries of the future like electric vehicles (EVs), clean energy, and semiconductors. With support from the Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act, these investments are creating new American jobs in manufacturing and clean energy and helping communities that have been left behind make a comeback. As President Biden says, American workers and businesses can outcompete anyone—as long as they have fair competition. But for too long, China’s government has used unfair, non-market practices. China’s forced technology transfers and intellectual property theft have contributed to its control of 70, 80, and even 90 percent of global production for the critical inputs necessary for our technologies, infrastructure, energy, and health care—creating unacceptable risks to America’s supply chains and economic security. Furthermore, these same non-market policies and practices contribute to China’s growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities. Today’s actions to counter China’s unfair trade practices are carefully targeted at strategic sectors—the same sectors where the United States is making historic investments under President Biden to create and sustain good-paying jobs—unlike recent proposals by Congressional Republicans that would threaten jobs and raise costs across the board. The previous administration’s trade deal with China failed to increase American exports or boost American manufacturing as it had promised. Under President Biden’s Investing in America agenda, nearly 800,000 manufacturing jobs have been created and new factory construction has doubled after both fell under the previous administration, and the trade deficit with China is the lowest in a decade—lower than any year under the last administration. We will continue to work with our partners around the world to strengthen cooperation to address shared concerns about China’s unfair practices—rather than undermining our alliances or applying indiscriminate 10 percent tariffs that raise prices on all imports from all countries, regardless whether they are engaged in unfair trade. The Biden-Harris Administration recognizes the benefits for our workers and businesses from strong alliances and a rules-based international trade system based on fair competition. Following an in-depth review by the United States Trade Representative, President Biden is taking action to protect American workers and American companies from China’s unfair trade practices. To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products. Steel and Aluminum The tariff rate on certain steel and aluminum products under Section 301 will increase from 0–7.5% to 25% in 2024. Steel is a vital sector for the American economy, and American companies are leading the future of clean steel. Recently, the Biden-Harris Administration announced $6 billion for 33 clean manufacturing projects including for steel and aluminum, including the first new primary aluminum smelter in four decades, made possible by the Bipartisan Infrastructure Law and the Inflation Reduction Act. These investments will make the United States one of the first nations in the world to convert clean hydrogen into clean steel, bolstering the U.S. steel industry’s competitiveness as the world’s cleanest major steel producer. American workers continue to face unfair competition from China’s non-market overcapacity in steel and aluminum, which are among the world’s most carbon intensive. China’s policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions. Today’s actions will shield the U.S. steel and aluminum industries from China’s unfair trade practices. Semiconductors The tariff rate on semiconductors will increase from 25% to 50% by 2025. China’s policies in the legacy semiconductor sector have led to growing market share and rapid capacity expansion that risks driving out investment by market-driven firms. Over the next three to five years, China is expected to account for almost half of all new capacity coming online to manufacture certain legacy semiconductor wafers. During the pandemic, disruptions to the supply chain, including legacy chips, led to price spikes in a wide variety of products, including automobiles, consumer appliances, and medical devices, underscoring the risks of overreliance on a few markets. Through the CHIPS and Science Act, President Biden is making a nearly $53 billion investment in American semiconductor manufacturing capacity, research, innovation, and workforce. This will help counteract decades of disinvestment and offshoring that has reduced the United States’ capacity to manufacture semiconductors domestically. The CHIPS and Science Act includes $39 billion in direct incentives to build, modernize, and expand semiconductor manufacturing fabrication facilities as well as a 25% investment tax credit for semiconductor companies. Raising the tariff rate on semiconductors is an important initial step to promote the sustainability of these investments. Electric Vehicles (EVs) The tariff rate on electric vehicles under Section 301 will increase from 25% to 100% in 2024. With extensive subsidies and non-market practices leading to substantial risks of overcapacity, China’s exports of EVs grew by 70% from 2022 to 2023—jeopardizing productive investments elsewhere. A 100% tariff rate on EVs will protect American manufacturers from China’s unfair trade practices. This action advances President Biden’s vision of ensuring the future of the auto industry will be made in America by American workers. As part of the President’s Investing in America agenda, the Administration is incentivizing the development of a robust EV market through business tax credits for manufacturing of batteries and production of critical minerals, consumer tax credits for EV adoption, smart standards, federal investments in EV charging infrastructure, and grants to supply EV and battery manufacturing. The increase in the tariff rate on electric vehicles will protect these investments and jobs from unfairly priced Chinese imports. Batteries, Battery Components and Parts, and Critical Minerals The tariff rate on lithium-ion EV batteries will increase from 7.5%% to 25% in 2024, while the tariff rate on lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026. The tariff rate on battery parts will increase from 7.5% to 25% in 2024. The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026. The tariff rate for certain other critical minerals will increase from zero to 25% in 2024. Despite rapid and recent progress in U.S. onshoring, China currently controls over 80 percent of certain segments of the EV battery supply chain, particularly upstream nodes such as critical minerals mining, processing, and refining. Concentration of critical minerals mining and refining capacity in China leaves our supply chains vulnerable and our national security and clean energy goals at risk. In order to improve U.S. and global resiliency in these supply chains, President Biden has invested across the U.S. battery supply chain to build a sufficient domestic industrial base. Through the Bipartisan Infrastructure Law, the Defense Production Act, and the Inflation Reduction Act, the Biden-Harris Administration has invested nearly $20 billion in grants and loans to expand domestic production capacity of advanced batteries and battery materials. The Inflation Reduction Act also contains manufacturing tax credits to incentivize investment in battery and battery material production in the United States. The President has also established the American Battery Materials Initiative, which will mobilize an all-of-government approach to secure a dependable, robust supply chain for batteries and their inputs. Solar Cells The tariff rate on solar cells (whether or not assembled into modules) will increase from 25% to 50% in 2024. The tariff increase will protect against China’s policy-driven overcapacity that depresses prices and inhibits the development of solar capacity outside of China. China has used unfair practices to dominate upwards of 80 to 90% of certain parts of the global solar supply chain, and is trying to maintain that status quo. Chinese policies and nonmarket practices are flooding global markets with artificially cheap solar modules and panels, undermining investment in solar manufacturing outside of China. The Biden-Harris Administration has made historic investments in the U.S. solar supply chain, building on early U.S. government-enabled research and development that helped create solar cell technologies. The Inflation Reduction Act provides supply-side tax incentives for solar components, including polysilicon, wafers, cells, modules, and backsheet material, as well as tax credits and grant and loan programs supporting deployment of utility-scale and residential solar energy projects. As a result of President Biden’s Investing in America agenda, solar manufacturers have already announced nearly $17 billion in planned investment under his Administration—an 8-fold increase in U.S. manufacturing capacity, enough to supply panels for millions of homes each year by 2030. Ship-to-Shore Cranes The tariff rate on ship-to-shore cranes will increase from 0% to 25% in 2024. The Administration continues to deliver for the American people by rebuilding the United States’ industrial capacity to produce port cranes with trusted partners. A 25% tariff rate on ship-to-shore cranes will help protect U.S. manufacturers from China’s unfair trade practices that have led to excessive concentration in the market. Port cranes are essential pieces of infrastructure that enable the continuous movement and flow of critical goods to, from, and within the United States, and the Administration is taking action to mitigate risks that could disrupt American supply chains. This action also builds off of ongoing work to invest in U.S. port infrastructure through the President’s Investing in America Agenda. This port security initiative includes bringing port crane manufacturing capabilities back to the United States to support U.S. supply chain security and encourages ports across the country and around the world to use trusted vendors when sourcing cranes or other heavy equipment. Medical Products The tariff rates on syringes and needles will increase from 0% to 50% in 2024. For certain personal protective equipment (PPE), including certain respirators and face masks, the tariff rates will increase from 0–7.5% to 25% in 2024. Tariffs on rubber medical and surgical gloves will increase from 7.5% to 25% in 2026. These tariff rate increases will help support and sustain a strong domestic industrial base for medical supplies that were essential to the COVID-19 pandemic response, and continue to be used daily in every hospital across the country to deliver essential care. The federal government and the private sector have made substantial investments to build domestic manufacturing for these and other medical products to ensure American health care workers and patients have access to critical medical products when they need them. American businesses are now struggling to compete with underpriced Chinese-made supplies dumped on the market, sometimes of such poor quality that they may raise safety concerns for health care workers and patients. Today’s announcement reflects President Biden’s commitment to always have the back of American workers. When faced with anticompetitive, unfair practices from abroad, the President will deploy any and all tools necessary to protect American workers and industry.

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May 14, 2024

WASHINGTON – U.S. Trade Representative Katherine Tai today released the following statement concerning the statutory review of the tariff actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation: “After thorough review of the statutory report on Section 301 tariffs, and having considered my advice, President Biden is directing me to take further action to encourage the elimination of the People’s Republic of China’s unfair technology transfer-related policies and practices that continue to burden U.S. commerce and harm American workers and businesses,” said Ambassador Katherine Tai. “As the President recognizes in his memorandum, while the tariffs have been effective in encouraging the PRC to take some steps to address the issues identified in the Section 301 investigation, further action is required. “In light of President Biden’s direction, I will be proposing modifications to the China tariffs under Section 301 to confront the PRC’s unfair policies and practices. From the beginning of the Biden-Harris Administration, I have been committed to using every lever of my office to promote American jobs and investments, and these recommendations are no different. Today, we serve our statutory goal to stop the PRC’s harmful technology transfer-related acts, policies, and practices, including its cyber intrusions and cyber theft. I take this charge seriously, and I will continue to work with my partners across sectors to ensure any action complements the Biden-Harris Administration’s efforts to expand opportunities for American workers and manufacturers.” The Section 301 statute directs that the four-year review includes a consideration of: the effectiveness of the tariff actions in achieving the objective of the investigation; other actions that could be taken; and the overall effects of the tariff actions on the U.S. economy. The Office of the U.S. Trade Representative’s (USTR) Report addresses the statutory elements of the review, suggests modifications to strengthen the actions, and makes certain recommendations. To encourage further elimination of the PRC’s technology transfer-related acts, policies, and practices, Ambassador Tai has recommended that products from the PRC currently subject to Section 301 tariffs should remain. Additionally, in light of the increased burden on U.S. commerce, President Biden is directing Ambassador Tai to take action to add or increase tariffs for certain products. As the Report details, Ambassador Tai will propose the following modifications in strategic sectors:

The Report also makes recommendations for: (1) establishing an exclusion process targeting machinery used in domestic manufacturing, including proposals for 19 exclusions for certain solar manufacturing equipment; (2) allocating additional funds to United States Customs and Border Protection for greater enforcement of Section 301 actions; (3) greater collaboration and cooperation between private companies and government authorities to combat state-sponsored technology theft; and (4) continuing to assess approaches to support diversification of supply chains to enhance our own supply chain resilience. President Biden is also directing Ambassador Tai to establish an exclusion process for machinery used in domestic manufacturing and to prioritize, in particular, exclusions for certain solar manufacturing equipment. Next week, USTR will issue a Federal Register notice announcing procedures for interested persons to comment on the proposed modifications and information concerning an exclusion process for machinery used in domestic manufacturing. Background In May 2022, USTR commenced the statutory four-year review process by notifying representatives of domestic industries that benefit from the tariff actions of the possible termination of those actions and of the opportunity for the representatives to request continuation. In September 2022, USTR announced that because requests for continuation were received, the tariff actions had not terminated and USTR would conduct a review of the tariff actions. USTR opened a docket on November 15, 2022, for interested persons to submit comments with respect to a number of considerations concerning the review. USTR received nearly 1,500 comments. As part of the statutory review process, throughout 2023 and early 2024, USTR and the Section 301 Committee (a staff-level body of the USTR-led, interagency Trade Policy Staff Committee) held numerous meetings with agency experts concerning the review and the comments received. Specifically, the Report concludes:

The Section 301 actions have been effective in encouraging the PRC to take steps toward eliminating some of its technology transfer-related acts, policies, and practices and have reduced some of the exposure of U.S. persons and businesses to these technology transfer-related acts, policies, and practices.
The PRC has not eliminated many of its technology transfer-related acts, policies, and practices, which continue to impose a burden or restriction on U.S. commerce. Instead of pursuing fundamental reform, the PRC has persisted, and in some cases become aggressive, including through cyber intrusions and cybertheft, in its attempts to acquire and absorb foreign technology, which further burden or restrict U.S. commerce.
Economic analyses generally find that tariffs (particularly PRC retaliation) have had small negative effects on U.S. aggregate economic welfare, positive impacts on U.S. production in the 10 sectors most directly affected by the tariffs, and minimal impacts on economy-wide prices and employment.
Negative effects on the United States are particularly associated with retaliatory tariffs that the PRC has applied to U.S. exports.
Critically, these analyses examine the tariff actions as isolated policy measures without reference to the policy landscape that may be reinforcing or undermining the effects of the tariffs.
Economic analyses, including the principal U.S. Government analysis published by the U.S. International Trade Commission, generally find that the Section 301 tariffs have contributed to reducing U.S. imports of goods from the PRC and increasing imports from alternate sources, including U.S. allies and partners, thereby potentially supporting U.S. supply chain diversification and resilience.

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Elektrostal (Q198419)

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Geographic coordinates of Elektrostal, Moscow Oblast, Russia

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Coordinates of elektrostal in degrees and decimal minutes, utm coordinates of elektrostal, geographic coordinate systems.

WGS 84 coordinate reference system is the latest revision of the World Geodetic System, which is used in mapping and navigation, including GPS satellite navigation system (the Global Positioning System).

Geographic coordinates (latitude and longitude) define a position on the Earth’s surface. Coordinates are angular units. The canonical form of latitude and longitude representation uses degrees (°), minutes (′), and seconds (″). GPS systems widely use coordinates in degrees and decimal minutes, or in decimal degrees.

Latitude varies from −90° to 90°. The latitude of the Equator is 0°; the latitude of the South Pole is −90°; the latitude of the North Pole is 90°. Positive latitude values correspond to the geographic locations north of the Equator (abbrev. N). Negative latitude values correspond to the geographic locations south of the Equator (abbrev. S).

Longitude is counted from the prime meridian ( IERS Reference Meridian for WGS 84) and varies from −180° to 180°. Positive longitude values correspond to the geographic locations east of the prime meridian (abbrev. E). Negative longitude values correspond to the geographic locations west of the prime meridian (abbrev. W).

UTM or Universal Transverse Mercator coordinate system divides the Earth’s surface into 60 longitudinal zones. The coordinates of a location within each zone are defined as a planar coordinate pair related to the intersection of the equator and the zone’s central meridian, and measured in meters.

Elevation above sea level is a measure of a geographic location’s height. We are using the global digital elevation model GTOPO30 .

Elektrostal , Moscow Oblast, Russia

COMMENTS

Transfer of Property in Goods: Significance, Rules
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In a sale of goods, the property passes when parties intend it to pass, as per the Sale of Goods Act 1930. The general rule is that property transfers when goods are intended to be transferred, even if delivery is postponed. If goods are sold "specifically," property passes when the parties intend, and if not specified, when the contract is ...
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Meaning of Passing of Property/Transfer of Property. Passing of property implies transfer of ownership and not the physical possession of goods.For example,where a principal sends goods to his agent,he merely transfers the physical possession and not the ownership of goods.Here,the principal is the owner of the goods but is not having possession of goods and the agent is having possession of ...
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Vietnam April 7 2022. Rules on the passing of risk are regulated in articles from 66 to 70 of the CISG. Briefly, article 66 governs the legal consequences of the transfer of risk which states that ...
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Transfer of rights in the property rights is one of the foundations of property ownership rights. It's possible for a property owner to give away some rights but still hold onto ownership. One example of this is when a property owner gives someone an easement to get to another piece of property. Transferring ownership entirely is another option ...
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Section 21. If the goods are not ready in deliverable state at the time of making contract of sale, ownership of goods is transferred after formation of contract of sale when following conditions are satisfied; Contract is for specific goods. Goods are put in deliverable state by seller. Fact that the goods are put into deliverable state has ...
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Moveable and Immovable Property under The TPA,1882
The transfer under the TPA, 1882 deals with specific transfer pertaining to immoveable and moveable property. However, it is said that anything which excludes immoveable property is regarded as moveable property. Section 3 (2) of the Act states:-. "Immoveable property does not include standing timber, growing crops or grass'.
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Elektrostal
Elektrostal , lit: Electric and Сталь , lit: Steel) is a city in Moscow Oblast, Russia, located 58 kilometers east of Moscow. Population: 155,196 ; 146,294 ...
Elektrostal
All structured data from the main, Property, Lexeme, and EntitySchema namespaces is available under the Creative Commons CC0 License; text in the other namespaces is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply.
Elektrostal Map
Elektrostal is a city in Moscow Oblast, Russia, located 58 kilometers east of Moscow. Elektrostal has about 158,000 residents. Mapcarta, the open map.
Geographic coordinates of Elektrostal, Moscow Oblast, Russia
Geographic coordinates of Elektrostal, Moscow Oblast, Russia in WGS 84 coordinate system which is a standard in cartography, geodesy, and navigation, including Global Positioning System (GPS). Latitude of Elektrostal, longitude of Elektrostal, elevation above sea level of Elektrostal.