(1)Goods are taken to be in the course of transit from the time when they are delivered to a carrier by land, air or water, or other bailee for the purpose of transmission to the buyer, until the buyer or his or her agent for the purpose takes delivery of them from that carrier or other bailee.

(2)The transit shall end if the buyer or his or her agent obtains delivery of the goods before their arrival at the appointed destination.

(3)The transit shall end, if, after the arrival of the goods at the appointed destination, the carrier or other bailee acknowledges to the buyer or his or her agent, that he or she holds the goods on his or her behalf and continues in possession of them as bailee for the buyer or his or her agent, and it is immaterial that a further destination for the goods has been indicated by the buyer.

(4)The transit shall not be taken to be at an end, if the goods are rejected by the buyer and the carrier or other bailee continues in possession of them, even if the seller has refused to receive them back.

(5)When the goods are delivered to a ship chartered by the buyer, it is a question depending on the circumstances of the particular case, whether they are in the possession of the master as a carrier, or as agent to the buyer.

(6)Transit shall be taken to have ended where the carrier or other bailee wrongfully refuses to deliver the goods to the buyer or the buyer's agent for the purpose.

(7)Where part delivery of the goods has been made to the buyer or he buyer's agent for the purpose, the remainder of the goods may be stopped in transit, unless that part delivery has been made in such circumstances as to show an agreement to give up possession of the whole of the goods.