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

Under the Sale of Goods Act, 1930, where a contract is for the sale of unascertained goods by description, the property in the goods passes to the buyer when goods of that description, in a deliverable state, are:

Property in unascertained goods passes when goods of the contract description, in a deliverable state, are unconditionally appropriated to the contract by one party with the other's assent. Mere inspection, pricing or insurance does not transfer property.

  1. AUnconditionally appropriated to the contract with the assent of the other partyCorrect
  2. BInspected by the buyer at his own premises
  3. CPriced in the seller's catalogue
  4. DInsured by the seller against transit risk

Explanation

Section 23(1) provides that property in unascertained goods passes when goods of that description and in a deliverable state are unconditionally appropriated to the contract, by the seller with the buyer's assent or by the buyer with the seller's assent. Inspection, pricing or insurance alone do not amount to unconditional appropriation.

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