25Reservation of right of disposal
(1) Where there is a contract for the sale of specific goods or where goods are subsequently appropriated to the contract, the seller may, by the terms of the contract or appropriation, reserve the right of disposal of the goods until certain conditions are fulfilled. In such case, notwithstanding the delivery of the goods to a buyer or to a carrier or other bailee for the purpose of transmission to the buyer, the property in the goods does not pass to the buyer until the conditions imposed by the seller are fulfilled.
1[(2) Where goods are shipped or delivered to a railway administration for carriage by railway and by the bill of lading or railway receipt, as the case may be, the goods are deliverable to the order of the seller or his agent, the seller is prima facie deemed to reserve the right of disposal.
(3) Where the seller of goods draws on the buyer for the price and transmits to the buyer the bill of exchange together with the bill of lading or, as the case may be, the railway receipt, to secure acceptance or payment of the bill of exchange, the buyer is bound to return the bill of lading or the railway receipt if he does not honour the bill of exchange; and, if he wrongfully retains the bill of lading or the railway receipt, the property in the goods does not pass to him.
Explanation.-- In this section, the expressions "railway" and "railway administration" shall have the meanings respectively assigned to them under the Indian Railways Act, 1890 (9 of 1890).]
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1. Subs by Act 33 of 1963, s. 4, for sub-sections (2) and (3) (w.e.f. 22-9-1963).
- 1 Short title, extent and commencement
- 2 Definitions
- 3 Application of provisions of Act 9 of 1872
- 4 Sale and agreement to sell
- 5 Contract of sale how made
- 6 Existing or future goods
- 7 Goods perishing before making of contract
- 8 Goods perishing before sale but after agreement to sell
- 9 Ascertainment of price
- 10 Agreement to sell at valuation
- 11 Stipulations as to time
- 12 Condition and warranty
- 13 When condition to be treated as warranty
- 14 Implied undertaking as to title, etc
- 15 Sale by description
- 16 Implied conditions as to quality or fitness
- 17 Sale by sample
- 18 Goods must be ascertained
- 19 Property passes when intended to pass
- 20 Specific goods in a deliverable state
- 21 Specific goods to be put into a deliverable state
- 22 Specific goods in a deliverable state, when the seller has to do anything thereto in order to ascertain price
- 23 Sale of unascertained goods and appropriation
- 24 Goods sent on approval or “on sale or return”
- 25 Reservation of right of disposal
- 26 Risk prima facie passes with property
- 27 Sale by person not the owner
- 28 Sale by one of joint owners
- 29 Sale by person in possession under voidable contract
- 30 Seller or buyer in possession after sale
- 31 Duties of seller and buyer
- 32 Payment and delivery are concurrent conditions
- 33 Delivery
- 34 Effect of part delivery
- 35 Buyer to apply for delivery
- 36 Rules as to delivery
- 37 Delivery of wrong quantity
- 38 Instalment deliveries
- 39 Delivery to carrier or wharfinger
- 40 Risk where goods are delivered at distant place
- 41 Buyer’s right of examining the goods
- 42 Acceptance
- 43 Buyer not bound to return rejected goods
- 44 Liability of buyer for neglecting or refusing delivery of goods
- 45 “Unpaid seller” defined
- 46 Unpaid seller’s rights
- 47 Seller’s lien
- 48 Part delivery
- 49 Termination of lien
- 50 Right of stoppage in transit
- 51 Duration of transit
- 52 How stoppage in transit is effected
- 53 Effect of sub-sale or pledge by buyer
- 54 Sale not generally rescinded by lien or stoppage in transit
- 55 Suit for price
- 56 Damages for non-acceptance
- 57 Damages for non-delivery
- 58 Specific performance
- 59 Remedy for breach of warranty
- 60 Repudiation of contract before due date
- 61 Interest by way of damages and special damages
- 62 Exclusion of implied terms and conditions
- 63 Reasonable time a question of fact
- 64 Auction sale
- 64A In contracts of sale, amount of increased or decreased taxes to be added or deducted
- 65 [Repealed.]
- 66 Savings