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Section 83: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]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
Section 82 All 266 Sections of Indian Contract Act Section 84

Legal Commentary & Landmark Judgments: Section 83

Section 83 of the Indian Contract Act, 1872 originally regulated the transfer of ownership of goods sent on approval or on 'sale or return' terms, providing that ownership passes upon approval, adoption, or failure to return within reasonable time; repealed by Act 3 of 1930 and succeeded by Section 24 of the Sale of Goods Act, 1930.

  • Approval and 'Sale or Return' Mechanics: Governed commercial consignments where possession was transferred to a prospective buyer on trial, approval, or sale-or-return terms, with property remaining in the seller.
  • Three Statutory Triggers for Passing of Property: Ownership passed to the buyer when he: (1) signified his approval or acceptance; (2) performed any act adopting the transaction (such as pledging or reselling); or (3) retained the goods without giving notice of rejection beyond the agreed period or a reasonable time.
  • Legislative Repeal and Modern Succession (Act 3 of 1930): Repealed by Act 3 of 1930 and re-enacted verbatim in substance as Section 24 of the Sale of Goods Act, 1930.
Key Landmark Precedents:
  • Kirkham v. Attenborough (1897) 1 QB 201: Codified in Section 83 and Section 24 SGA: where a person who received jewelry on sale-or-return pledged it with a pawnbroker, the act of pledging was held an 'act adopting the transaction', passing property to him and protecting the pawnbroker's lien.
  • Weiner v. Gill (1906) 2 KB 574: Distinguished Kirkham: where the contract expressly provided that property was to remain in the seller until cash was paid, handing over goods on approval did not allow property to pass even if the buyer purported to pledge them.
Courtroom Practice & Strategic Litigation Guidance:

When drafting consignment, distributor trial, or sale-or-return agreements, insert an explicit 'retention of title' clause superseding default adoption rules. In litigation where a prospective buyer pledges or disposes of trial goods, invoke Section 24 SGA (succeeding Section 83) to treat the unauthorized disposal as statutory adoption, entitling your client to sue immediately for the full price.

Section 82 All 266 Sections of Indian Contract Act Section 84