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Section 88: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]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 87 All 266 Sections of Indian Contract Act Section 89

Legal Commentary & Landmark Judgments: Section 88

Section 88 of the Indian Contract Act, 1872 originally established that postponement of delivery or payment does not prevent ownership from passing immediately upon contract formation if the parties so intend; repealed by Act 3 of 1930 and succeeded by Section 19 of the Sale of Goods Act, 1930.

  • Severance of Title Transfer from Delivery/Payment Dates: Established that neither the postponement of the time of delivery nor the postponement of the time of payment prevents property in specific goods from passing immediately.
  • Primacy of Contractual Intention: Party intention remains the paramount criterion; where the contract indicates an immediate sale, ownership passes regardless of executory delivery timelines.
  • Legislative Repeal and Modern Succession (Act 3 of 1930): Repealed by Act 3 of 1930; incorporated into Section 19(1) and Section 20 of the Sale of Goods Act, 1930.
Key Landmark Precedents:
  • Agricultural Market Committee v. Shalimar Chemical Works Ltd. (1997) 5 SCC 516: The Supreme Court affirmed that under the Sale of Goods Act lineage (originating in Section 88 Contract Act), property passes when the parties intend it to pass, regardless of deferred physical delivery or deferred payment.
  • P.S.N.S. Ambalavana Chettiar v. Express Newspapers Ltd. (1968) 2 SCR 439: The Supreme Court held that the intention of the parties to transfer ownership immediately controls the transaction, even if the delivery of goods is to be made in future instalments.
Courtroom Practice & Strategic Litigation Guidance:

In plaints seeking the full contract price rather than damages for non-acceptance, invoke Section 19 SGA (succeeding Section 88). Plead that because property passed upon contract formation notwithstanding deferred delivery, the seller is legally entitled to maintain an action for the price under Section 55 of the Sale of Goods Act.

Section 87 All 266 Sections of Indian Contract Act Section 89