Section 25 of SOGA : Section 25: Reservation Of Right Of Disposal

Explanation using Example

Imagine that a manufacturer (seller) agrees to sell a specific machine to a retailer (buyer). The contract states that the machine will be shipped to the retailer, but the manufacturer reserves the ownership (right of disposal) until the retailer pays in full. The machine is delivered to a shipping company to be sent to the retailer, but according to Section 25(1) of The Sale of Goods Act, 1930, the property in the machine does not pass to the retailer until they complete the payment as per the seller's conditions.