Laws regarding Transfer of Property.

1. Business & Labor Law
Lecture no 14
Date 4th January 2017
Zafar ul haq

2. PROPERTY
 Any thing or things belonging to someone;
possessions collectively. The owner has the
right to move, sell or alter in that.
 There are two main types of property
 Real property
 Personal property

3.  The basic objective of contract of sales of
good is to transfer the property from seller to
buyer. The buyer acquires ownership rights.
 Ownership and Possession

4. RULES FOR TRANSFERRING OF PROPERTY
 Unascertained or Future goods.
 Section 18 of the contract act 1872.
 No property in the good is transferred to the
buyer unless and until the goods are
ascertained or specified.

5. • Ali agrees to sell Shahid 20kg of rice out of
large stock. Unless 20kg is separated from
the stock, the contract can’t take place.
 The unascertained goods should be brought
to ascertained position that should be ready
for delivery.

6. SPECIFIC GOODS
 Where there is contract of specific goods in
deliverable state, the property in goods
passes from seller to buyer and the
ownership is also transferred.
 If the deal/contract is postponed by any one
party or both, then the transaction should be
cancel.

7. Ali agrees to sell his cell phone to Amjad for
Rs15000. once Ali delivers the cell phone to
Amjad then Amjad is legally the owner of the
cell phone.

8. SPECIFIC GOODS NOT IN DELIVERABLE STATE
 Sec 21 says that,
 When there is contract between two parties
for any specific good that is not in deliverable
position, then there should be no transaction
unless and until the goods to be in
deliverable position.

9. EXAMPLES
Buying a car that is not yet assembled.
Buying a novel that is not yet written.
Buying a software that is not yet completed

10. SPECIFIC GOODS IN A DELIVER STATE BUT PRICE
TO BE ASCERTAINED
 Sec 22
 When there is contract between two parties
for any transactions and the goods are
specific and even in position of deliverable,
yet again the seller is bound to ascertain the
price by weight, measure or test etc.

11. EXAMPLE
A Stock of wheat is sold @ 100/kg. now here
the stock should be measured/weight and
then deliver to the buyer. Incase any loss is
there to the stock, the seller is bound to
compensate the buyer, unless the stock is
delivered.

12. TRANSFER OF TITLE
 Under the contract of sales of goods, the
actual owner has the right to sell his property
to a buyer.
 No 3rd party can transfer the property.
 If a buyer buys some property from such a
person who is not the actual owner, then is
illegally possessing the good/property.

13. EXAMPLE
A hires a car from B and sells to C. here C
has no title of car because the title of car is
with A.

14. SALES UNDER IMPLIED AUTHORITY
 Sec 27 (1)
 When the actual owner of the good shows
his conduct or words that the seller has the
authority to sell the good, then the buyer can
get the title from the 3rd person.
 A person sells his brother’s cell phone in the
presence of his brother to X. here X has now
the title of the cell phone.

15. SALES BY MERCANTILE AGENT
 Sec 27 (2)
 Mercantile agent is a person who has the
authority to sell or purchase goods on the
behalf of the principal. So the buyer if buys
goods from such agent has the title of the
goods.
 Property dealers
 Sales man etc

16. SALES BY JOINT OWNER
 Sec 28
 Where a joint owner of goods having sole
possession of them sell goods with the
authority of joint owners, the buyer has then
the title.
 X and Y are joint owner of a car. Y with the
permission of X can sell the car to Z.

17. SALES UNDER VOIDABLE CONTRACT
 Sec 29
 When seller of a good acquires possession
of goods of other person by coercion and
sells it to a buyer, then the buyer can have a
good title.
 X buys furniture of Y at a low price by
threaten him and sells the furniture to Z, Z
can have the furniture title.

18. SELLER IN POSSESSION AFTER SALE
 Sec 30
 Buyer obtain goods title once it buys from a
seller who has already sold the goods to
other person but still have the possession of
the goods.
 X sells a car to Y but the car has already sold
to Z, but X still has the possession, here Y
can have the car title.

19. BUYER AFTER SALE
 Sec 30 (2)
 X enters in to a contract with Y to buy Y’s car.
X has now the title and possession of the car.
X sells the car to Z , hence Z requires to
have the car title.

20. SALE BY UNPAID SELLER
 Sec 54 (3)
 X buys a car from Y @ Rs 5lac. He pays
3Lac as down payment and remaining 2Lac
to be paid in specified time before the
delivery of the car. Now X fails to deliver the
amount and Y sell the car to Z, here Z can
have the car title.

21. SALES OF FINDER OF LOST GOODS
 A person who find goods belonging to
another and takes them in to custody can sell
the goods under the following conditions.
 Goods are perishable in nature
 Due search of owner and fails
 Lawful charges exceeds 2/3rd of the value of
good.

22. EXAMPLE
X finds a mobile that is very expensive. X
gives aid in newspaper in search of the
owner but either gets no response or the
owner refuses to pay the expenses, so X
sells the mobile to Z and Z can have the
mobile title.

23. SALES OF PLEDGE
 Sec 176
 When a person pledge his goods as securty
of debt, the pledgee can also sell the
pledged good under genuine condition.
 Ali borrow 20 lac rupee from Zahid and
pledge his car. If Ali fails to repay Zahid,
Zahid can sell the pledged car.

24. CASE OF INSOLVENCY
 Due to in solvency of one party the official
receiver can sell the goods and property of
solvent person.
 X borrows 5 lac rupees from Y to start
business and become solvent for some
reason. Y can sell the property of X to Z and
Z can have the goods title.

25. Question & Queries ?