Goods are classified as specific and unascertained, and the laws relating to such goods differ. As per section 61 (1) of Sale of Goods Act 1979 (SoGA) goods are ‘specific’ if they are ‘identified and agreed upon at the time the contract was made.’ However ‘unascertained goods’ are not defined by SoGA. It is generally referred to goods that are not specific.
The basic rule under section 16 of SoGA, no property in the unascertained goods can pass to the buyer unless and until the goods become ascertained. Application of this section and the principles of ascertainment can be seen in Everwine Ltd & ors v Customs and Excise Commissioners [2003] EWCA Civ 953.
Section 17 (1) of SoGA provides the rules for specific and ascertained goods. Accordingly where there is a contract for the sale of specific or ascertained goods, the property in them is transferred to the buyer at such time as the parties to the contract intend it to be transferred. Furthermore, if the parties did not expressly state as to when the property is transferred, as per section 17 (2) the intention may be implied from the circumstances of the contract.
However, it may be the case where no such intention of passing the property is found. For such situations section 18 is applied.
These are just the general principles that are applicable to the passing of property.
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