Transfer of Property

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The property in the goods is defined to be transferred from the seller to the buyer when the latter acquires the proprietary rights over the goods and the obligations linked thereto. 'Property in Goods' which means the ownership of goods, is different from possession of goods which means the physical custody or control of the goods. Otherwise , a person may be in possession the goods passes to the buyer because of the consequences flowing which a goods remain at the seller’s risk until the property therein is transferred to the buyer, the goods are at the buyer’s risk irrespective of whether delivery has been made. It is related with the section 26 in Sales Of Good Act.
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While the main engine was being loaded on a railway truck, it was partially broken by accident. So the Court of Appeal that it had not passed to the buyer at the time of the accident and the engine was still at the seller’s risk. Furthermore, based on rules 2 in section 18 same as section 20 of Sale of Goods Act also could not be applied simply because the engine was not the time in a deliverable state. And to be delivered state, the goods must be in such a physical state that the buyer can take delivery and it is agreed that he will take delivery upon the contract. Here property in the goods passes from the seller to the buyer where the contract for sale is unconditional in other cases that held is this was a contract for an immediate and not a future sale, and that the property in the hay passed by it immediately to the vendee and that the same having been subsequently destroyed by fire, the loss fell upon him.

1.4 Fourth, a another rules for establishing the time for passing of property is specific goods to be in a deliverable state. Where the good is specific but certain steps have to be taken to put the good into a deliverable state, except such steps have been undertaken no property will pass. The section 21 read as follows :
Where there is a contract to sell specific goods and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until
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