Q.Explain the rules regarding transfer of property (ownership) in goods from seller to buyer.

Deciding exactly when ownership passes matters because it usually also decides who bears the risk if the goods are lost or damaged.

The Act's guiding principle is that property in goods passes when the parties intend it to pass, as shown by the terms of the contract, the conduct of the parties, and the circumstances of the case. Where intention is not clear, default rules apply:

• Specific or ascertained goods — property generally passes at the time the contract is made, if the goods are already in a deliverable state, unless a different intention appears (e.g. if the seller must still do something to the goods, like weighing them, to fix the price, ownership passes only once that act is done).
• Unascertained goods — property does not pass until the goods are actually ascertained (identified and set apart) — usually through appropriation, where the seller or buyer selects specific goods for the contract with the other's assent.
• Goods on approval / 'sale or return' — property passes when the buyer signifies approval or acceptance, does some other adopting act, or after a reasonable time has elapsed without rejection. …

Assuming ownership always passes only on actual delivery of the goods — delivery and transfer of ownership are related but distinct events; ownership of specific goods in a delive …