Unless a different
intention appears, the rules in the Table apply for ascertaining the intention
of the parties as to the time at which the property in the goods is to pass to
the buyer.
Table
Rule 1. Where there is
an unconditional contract for the sale of specific goods, in a deliverable
state, the property in the goods passes to the buyer when the contract is
made, and it is immaterial whether the time of payment or the time of
delivery, or both, be postponed.
Rule 2. Where there is
a contract for the sale of specific goods, and the seller is bound to do
something to the goods for the purpose of putting them into a deliverable
state, the property does not pass until such thing be done, and the buyer has
notice thereof.
Rule 3. Where there is
a contract for the sale of specific goods in a deliverable state, but the
seller is bound to weigh, measure, test, or do some other act or thing with
reference to the goods for the purpose of ascertaining the price the property
does not pass until such act or thing be done, and the buyer has notice
thereof.
Rule 4. When goods are
delivered to the buyer on approval or on “sale or return”, or
other similar terms, the property therein passes to the buyer —
(a) when
he signifies his approval or acceptance to the seller, or does any other act
adopting the transaction;
(b) if
he does not signify his approval or acceptance to the seller, but retains the
goods without giving notice of rejection, then, if a time has been fixed for
the return of the goods, on the expiration of such time, and, if no time has
been fixed, on the expiration of a reasonable time. What is a reasonable time
is a question of fact.
Rule 5. (1) Where
there is a contract for the sale of unascertained or future goods by
description, and goods of that description and in a deliverable state are
unconditionally appropriated to the contract, either by the seller with the
assent of the buyer, or by the buyer with the assent of the seller, the
property in the goods thereupon passes to the buyer. Such assent may be
express or implied, and may be given either before or after the appropriation
is made.
(2) Where, in
pursuance of the contract, the seller delivers the goods to the buyer or to a
carrier or other bailee or custodier (whether named by the buyer or not) for
the purpose of transmission to the buyer, and does not reserve the right of
disposal, he is deemed to have unconditionally appropriated the goods to the
contract.
[Section 18 correction to reprint: Gazette 12 Mar
2002 p. 1032; amended: Act No. 19 of 2010 s. 51.]