15.7 Transfer of Ownership (the rules)

The five rules of property's passing: Specific or ascertained goods — property passes when intended by the parties (the intention test: the contract's terms, conduct and circumstances); Unascertained goods — not until appropriation to the contract (ascertainment + unconditional assent); Sale on approval / "on sale or return" — property passes on approval's sign, retention beyond the agreed time, or adoption; Reservation of the right of disposal — the seller keeps title until his conditions (payment) are met — the export-and-finance practice (retention-of-title clauses); Risk prima facie follows property, not possession or payment (res perit domino) — but where delivery is delayed by a party's fault, the party in default bears the risk meanwhile; the parties may shift it by agreement (Incoterms in international sales — Unit 16).