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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

Ravi Traders agrees to sell 100 bags of a specified grade of rice to Meena Foods from its general stock. Ravi sets aside 100 bags of that grade in a deliverable state and Meena, on being told, agrees to this. Under the Act, the property in these bags:

The property passes to Meena at once. The contract is for unascertained goods by description, and deliverable goods of that description have been unconditionally appropriated by the seller with the buyer's assent, which is what the Act requires for property to pass.

  1. Apasses to Meena on this unconditional appropriation with her assentCorrect
  2. Bpasses only when Meena pays the full price
  3. Cpasses only when Meena takes physical delivery
  4. Ddoes not pass until a written document is signed

Explanation

The goods are unascertained and sold by description. Goods of that description in a deliverable state were unconditionally appropriated by the seller with the buyer's assent, so under Section 23(1) property passes thereupon. Payment or delivery is not a stated requirement.

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