The purpose of a contract of sale of goods is the transfer of property (ownership) from the seller to the buyer.
Property is also called title.
It is important to know at what time property/title passes in the transaction of sale for the following reasons:
- Risk generally passes with the property/title. Therefore, if the goods are damaged or stolen the loss will normally fall on the owner.
- If property/title has passed the seller may sue the buyer for the price.
- If the contract is for specific goods and the property/title has passed to the buyer he cannot rejected the goods for breach of condition but can only sue for damages.