Rule 1.If there is an unconditional contract for the sale of specific goods in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment or the time of delivery, or both, be postponed.

Rule 2.If there is a contract for the sale of specific goods and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until that thing is done and the buyer has notice of it.

Rule 3.If there is a contract for the sale of specific goods in a deliverable state, but the seller is bound to weigh, measure, test, or do another act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until that act or thing is done and the buyer has notice of it.

Rule 4.If goods are delivered to the buyer on approval or “on sale or return,” or other similar terms, the property in them passes to the buyer

(a) when the buyer signifies the buyer’s approval or acceptance to the seller or does any other act adopting the transaction, or

(b) if the buyer does not signify the buyer’s approval or acceptance to the seller but retains the goods without giving notice of rejection, then, if a time has been fixed for the return of the goods, on the expiry of that time, and if no time has been fixed, on the expiry of a reasonable time.

Rule 5. (1)If there is a contract for the sale of unascertained or future goods by description, and goods of that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the assent of the buyer, or by the buyer with the assent of the seller, the property in the goods immediately passes to the buyer, and the assent may be express or implied, and may be given either before or after the appropriation is made.

Rule 5. (2)If, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier or other bailee or custodian, whether named by the buyer or not, for the purpose of transmission to the buyer, and does not reserve the right of disposal, the seller is deemed to have unconditionally appropriated the goods to the contract.