Transfer of property.

Transfer of property

Property, possession and risk:

There are three stages in the performance of a contract of sale of goods by a seller, viz,

1.the transfer of property in the goods;

2.the transfer of possession of the goods;

3.the passing of the risk.

Transfer of property in goods from the seller to the buyer is the main object of a contract of sale. The term property in goods must be ownership of goods property in goods refers to the custody or controle of goods.

It is important to know the presize moment of time at which the property in goods passes from the seller to the buyer for the following reasons:

1.risk followes ownership

2.action against third parties.

3.insolvancy of the seller or the buyer.

4.suit for prices.