Victorian Consolidated Legislation

Goods Act 1958 - SECT 23

Rules for ascertaining intention

23. Rules for ascertaining intention

Unless a different intention appears the following are rules for ascertaining
the intention of the parties as to the time at which the property in the goods
is to pass to the buyer:

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 (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.