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TRANSFER OF PROPERTY


In this context, property means and includes title, ownership.
Transfer of Property involves some action by the parties themselves.  If there is a contract to be signed for ownership to pass from seller to buyer, then you sign and transfer.

In passing of property, the parties need not do anything.  Basically this is ownership moving from seller to buyer by operation of the law.  It is inactive
there is no direct participation of the parties.

Property in the goods means ownership in these goods.

The practical consequences of transferring property.

i)             If property has passed to the buyer the buyer has a title to them and even when the seller becomes insolvent after the transfer, the fact that the seller is still in possession does not entitle the receiver in bankruptcy to touch the goods.  Where there are 2 legislation in conflict, ordinary legislation could mean that they have seen some loopholes that need to be addressed so the latter takes precedent.

ii)            If goods are delivered subject to a reservation of a title or property (ownership) by the seller, then the buyer may have good title to the goods should the seller become insolvent.

iii)           The right to sue a third party for loss or damage to the goods rests in the person who has the property.  The owner is the one who can sue.

iv)           The risk whether of damage or loss prima facie passes when property passes.  He who has property bears the risk.

v)            Once property has passed the seller can only sue for price.  The seller cannot file a suit seeking to rescind the contract.

 
 
 

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