Site navigation

Under section 4 of the Sale of Goods Act, 1930, an agreement to sell becomes a sale when which of the following passes from the seller to the buyer?

Question and options

Under section 4 of the Sale of Goods Act, 1930, an agreement to sell becomes a sale when which of the following passes from the seller to the buyer?

  1. Possession of the goods

  2. A document of title to the goods

  3. The risk of loss of the goods

  4. The property in the goods

Answer and explanation

Correct answer: D - The property in the goods

Under section 4(4) of the Sale of Goods Act, 1930, an agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. The test is the passing of ownership, not of possession; goods may be delivered before property passes, or property may pass while the seller keeps them. Handing over a document of title and the shift of risk are consequences that usually follow, not the test itself.

Practice for these exams

Related exam syllabi

More solved explanations in Formation of the contract of sale