Sale of Goods Act Section 20 — Specific goods in a deliverable state

CHAPTER III EFFECTS OF THE CONTRACT — Transfer of property as between seller and buyer

Commercial / Corporate

Summary

When there is an unconditional contract for the sale of specific goods that are already in a deliverable state, ownership of the goods passes to the buyer at the moment the contract is made. It does not matter if the payment of the price or the delivery of the goods, or both, is delayed until a later time.

Official Text

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 of the price or the time of delivery of the goods, or both, is postponed.