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

144: Property passes when intended to pass

You could also call this:

“Ownership changes when buyer and seller agree it should”

When you buy something specific or something that can be clearly identified, the ownership of that thing changes from the seller to you at the time both of you agree it should change. This is part of the agreement you make when you buy something.

To figure out when you and the seller meant for the ownership to change, you need to look at a few things. You should look at what the agreement says, how you and the seller act, and what’s happening in the situation. All of these things help show when you both meant for you to become the owner of what you bought.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844339.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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143: Goods must be ascertained, or

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

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145: Ascertaining parties’ intention, or

"Finding out when you own something you bought"

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

144Property passes when intended to pass

  1. Under a contract for the sale of specific or ascertained goods, the property in the goods is transferred to the buyer at the time that the parties to the contract intend it to be transferred.

  2. For the purpose of ascertaining the intention of the parties, regard must be had to—

  3. the terms of the contract; and
    1. the conduct of the parties; and
      1. the circumstances of the case.

        Compare