Business Laws
The Sale of Goods Act, 1930
5% weightage

Transfer of Property

Complete study guide with 10 practice questions, detailed explanations, and expert solutions for Transfer of Property in CA Foundation Business Laws.

Practice Questions

10
Total Questions
2
Easy
7
Medium
1
Hard
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Study Notes: Transfer of Property

Free study material for CA Foundation Business LawsThe Sale of Goods Act, 1930

Transfer of Property (Sections 18-26) determines when ownership passes from seller to buyer. Key principle: Property transfers when parties intend it to transfer. Rules (in absence of agreement): (1) Specific goods in deliverable state—property passes when contract made; (2) Specific goods not in deliverable state—property passes when goods are put in deliverable state and buyer notified; (3) Goods to be weighed/measured—property passes when weighed/measured and buyer notified; (4) Goods on approval—property passes when buyer accepts or retains beyond agreed time. Transit goods: Risk passes with property, not at delivery. Conditional contracts: Property depends on condition fulfillment. Case law: Pignataro v. Gilbertson establishes intention determines transfer timing. Seller's reservation of title: Seller can retain ownership until payment despite delivery. For accountants, property transfer timing determines revenue recognition, inventory relief, and risk transfer. Understanding when property passes essential for audit procedures. Exam tip: Identify goods type; apply appropriate transfer rule; distinguish property from risk of loss.

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