Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Sale of goods - Effects of contract - Transfer of property between seller and buyer

143: Goods must be ascertained

You could also call this:

“You don't own goods you've bought until they're clearly picked out for you”

When you agree to buy goods that haven’t been specifically identified, you don’t become the owner of those goods until they are clearly identified or set apart. This is called ‘ascertaining’ the goods.

For example, if you agree to buy 1,000 gold coins from a company that stores its gold all together, you don’t own any specific coins until the company separates out your 1,000 coins from the rest. While the gold is still stored as one big pile, you don’t own any particular part of it yet.

This rule helps to make sure that both you and the seller know exactly which items are being sold and who owns them at any given time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844338.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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142: Sale by sample, or

"Buying something based on a sample: what you need to know"

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144: Property passes when intended to pass, or

"Ownership changes when buyer and seller agree it should"

Part 3 Sale of goods
Effects of contract: Transfer of property between seller and buyer

143Goods must be ascertained

  1. Under a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained.

    Example

    A person (A) agrees to buy 1 000 gold coins from Gold Suppliers Limited.

    Gold Suppliers Limited stores its gold in bulk without allocating it to individual buyers.

    While the gold is stored as part of an undifferentiated bulk, ownership of the gold coins does not pass to A.

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