First Principles of Business Law

3. Property rights in chattels

3.3.3. Ascertaining the intention to transfer ownership

Albert wants to know how the necessary intention to transfer ownership of goods he might purchase will be ascertained, should any dispute arise.

Which of the following statements most correctly states the relevant law?

(a) When chattels are bought and sold, an intention to pass and receive ownership is determined subjectively, by determining whether the seller actually intended to pass ownership, and the buyer to receive it.

(b) When chattels are bought and sold, an intention to pass and receive ownership is determined objectively, requiring evidence of facts from which the requisite intentions can reasonably be inferred.