Question 3 OR (b)
Rules for transfer of ownership in ascertained (specific) goods
6 marks
- Time to write
- About 12 minutes
Question
Question 3 OR (b) · 6 marksDiscuss the rules on transfer of ownership in ascertained goods.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- DiscussEach point named and explained, not just listed.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Intention of the parties; ss. 20–24 1 mark 2 min
- 2 Specific goods in a deliverable state (s. 20) 2 marks 4 min
- 3 Goods to be put into a deliverable state (s. 21) 2 marks 3 min
- 4 Conclusion 1 mark 1 min
- Check: every ask answered, key terms underlined 1 min
Short on time? Trim steps 2 and 3 evenly rather than skip one: each is capped at its own marks. End with step 4 in a line or two.
Try it first. About 12 minutes for 6 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Ascertained goods are goods identified and agreed upon after the contract is made; specific goods are identified at the time of the contract. The Act's rules on when property in such goods passes depend on the intention of the parties, and sections 20 to 24 are the rules for ascertaining that intention.
1The TV is boxed and ready at the counter—his from the handshake, delivery or not.
Specific goods in a deliverable stateA customer who buys a television in a shop and asks for home delivery owns it at once.
2The laptop still needs its software loaded—the ribbon waits till the shop finishes.
Specific goods to be put into a deliverable stateWhere a shop must install the operating system on a laptop before delivery, property passes only when it has done so and told the buyer.
3The grain must be weighed first—ownership moves only after the scale settles and he is told.
Price to be ascertainedThe property does not pass until that act is done and the buyer has notice of it
Rule 1: specific goods in a deliverable state (s. 20). In an unconditional contract to sell specific goods that are in a deliverable state, the property passes to the buyer when the contract is made, even if payment or delivery or both are postponed. A customer who buys a television in a shop and asks for home delivery owns it at once.
Rule 2: specific goods to be put into a deliverable state (s. 21). Where the seller is bound to do something to the goods to put them into a deliverable state, the property does not pass until that thing is done and the buyer has notice of it. Where a shop must install the operating system on a laptop before delivery, property passes only when it has done so and told the buyer.
Rule 3: specific goods in a deliverable state, price to be ascertained (s. 22). Where the seller has to weigh, measure, test or do some other act to the goods to ascertain the price, the property does not pass until that act is done and the buyer has notice of it.
Conclusion. In specific or ascertained goods, property passes when the parties intend; failing anything to the contrary, at the contract if the goods are deliverable and nothing remains to be done to fix the price; otherwise when they are made deliverable, or the act fixing the price is done, and the buyer is told.
Where the 6 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Intention of the parties; ss. 20–24 | 1 |
| 2 | Specific goods in a deliverable state (s. 20) | 2 |
| 3 | Goods to be put into a deliverable state (s. 21) | 2 |
| 4 | Conclusion | 1 |
| Total | 6 |
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