Section 23 of SOGA : Section 23: Sale Of Unascertained Goods And Appropriation

SOGA

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Explanation using Example

Imagine you order a custom-built computer online, which is yet to be assembled (future goods). Once the computer is built to your specifications and the seller sends you an email confirming that your computer is ready for delivery, the seller has 'unconditionally appropriated' the goods to the contract with your implied assent. At this moment, under Section 23(1) of the Sale of Goods Act, 1930, the property in the computer passes to you.

Now consider that the seller then hands over the computer to a courier service to deliver it to you without reserving any right to take it back or control its delivery. According to Section 23(2), by doing so, the seller has made an unconditional appropriation of the goods to the contract, which means that the ownership has now passed to you, and the seller cannot claim the computer back.

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