Hong Kong Ordinances

SALE OF GOODS ORDINANCE - SECT 20

Rules for ascertaining intention

Unless a different intention appears, the following are rules for ascertaining
the intention of the parties as to the time at which the property in the goods
is to pass to the buyer- Rule 1. Where there is an unconditional contract for
the sale of specific  goods in a deliverable state, the property in the goods
passes to the buyer when the contract is made, and it is immaterial whether
the time of payment or the time of delivery, or both, be postponed. Rule 2.
Where there is a contract for the sale of specific goods and the seller is
bound to do something to the goods, for the purpose of putting them into a
deliverable state, the property does not pass until such thing be done, and
the buyer has notice thereof. Rule 3. Where there is a contract for the sale
of specific goods in a deliverable state, but the seller is bound to weigh,
measure, test, or do some other act or thing with reference to the goods for
the purpose of ascertaining the price, the property does not pass until such
act or thing be done, and the buyer has notice thereof.
Rule 4. When goods are delivered to the buyer on approval or "on sale or
return" or other similar terms, the property therein passes to the buyer-

   (a)  when he signifies his approval or acceptance to the seller or does any
        other act adopting the transaction;

   (b)  if he does not signify his approval or acceptance to the seller but
        retains the goods without giving notice of rejection, then, if a time
        has been fixed for the return of the goods, on the expiration of such
        time, and if no time has been fixed, on the expiration of a reasonable
        time. What is a reasonable time is a question of fact. Rule 5. (1)
        Where there is a contract for the sale of unascertained or
        future goods by description, and goods of that description, and in a
        deliverable state, are unconditionally appropriated to the contract,
        either by the seller with the assent of the buyer, or by the buyer
        with the assent of the seller, the property in the goods thereupon
        passes to the buyer. Such assent may be express or implied, and may be
        given either before or after the appropriation is made.

(2) Where, in pursuance of the contract, the seller delivers the goods to the
buyer or to a carrier or other bailee (whether named by the buyer or not) for
the purpose of transmission to the buyer, and does not reserve the right of
disposal, he is deemed to have unconditionally appropriated the goods to the
contract.