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# Reservation of the Right of Disposal in a Contract of Sale of Goods Reservation of the right of disposal is an important provision relating to the transfer of ownership in a contract of sale of goods. Under the Sale of Goods Act, 1930, the general rule is that ownership in goods passes from the seller to the buyer when the parties intend it to pass. However, the seller may reserve the right to dispose of the goods until certain conditions are fulfilled. In such a situation, even though the goods may have been delivered to the buyer or a carrier, the ownership does not pass to the buyer until the specified condition is satisfied. The expression “right of disposal” refers to the right of the seller to retain control over the ownership of the goods. When a seller reserves this right, the seller intends that the property in the goods should not pass to the buyer immediately. The transfer of ownership is postponed until the buyer fulfils a particular condition, most commonly the payment of the price. Section 25 of the Sale of Goods Act, 1930 deals with the reservation of the right of disposal. It provides that where there is a contract for the sale of __________ _____ __________ __________ ______ ___ __________ __________.
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