Section 82: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872

Legal Commentary & Landmark Judgments: Section 82

Section 82 of the Indian Contract Act, 1872 originally governed the transfer of ownership of goods sold in an uncertain quantity or forming part of a larger bulk, establishing that ownership cannot pass until the goods are segregated and appropriated; repealed by Act 3 of 1930 and succeeded by Section 23(1) of the Sale of Goods Act, 1930.

  • Sale of Unascertained Portion out of Bulk: Applied to transactions where a specified quantity or measure was sold from an undivided larger mass or indeterminate stock.
  • Mandatory Segregation and Appropriation Rule: Property in the goods did not pass to the buyer until the agreed quantity was physically separated, measured, severed, or specifically earmarked for the contract with mutual assent.
  • Legislative Repeal and Modern Succession (Act 3 of 1930): Repealed by Act 3 of 1930 and re-enacted in Section 23(1) of the Sale of Goods Act, 1930, cementing the requirement of unconditional appropriation by one party with the assent of the other.
Key Landmark Precedents:
  • Jute Distributors v. Sushil Kumar Gupta AIR 1974 Cal 386: The High Court applied the principles originating in Section 82 of the Contract Act and Section 23 of the SGA, holding that property in bales of jute forming part of a larger warehouse inventory could not pass until the bales were segregated and identified.
  • Healy v. Howlett & Sons (1917) 1 KB 337: Classic authority codified in Section 82 and Section 23 SGA: fish dispatched in bulk by railway from which the buyer's earmarked boxes were not segregated; held that property and risk had not passed to the buyer prior to deterioration.
Courtroom Practice & Strategic Litigation Guidance:

In bulk commodity, oil, or grain transactions, plead Section 23(1) SGA (succeeding Section 82) to establish that no title or risk transfers while goods remain co-mingled in unsegregated silos or tanks. Verify warehouse segregation logs and sampling certificates to pinpoint the exact moment of title transfer.