Sale by a Person in Possession under Voidable Contract
According to Section 29 of the Sale of Goods Act, 1930 “Sale by a Person in Possession under Voidable Contract” applies when someone possesses goods under a contract that might be canceled later. If this person sells the goods to a buyer who acted honestly without knowing about the contract’s issues, the buyer can own the goods legally under certain conditions. For example, if someone buys a laptop from a seller who might lose the right to sell it later due to contract issues, but sells it honestly, the buyer can legally own the laptop if specific conditions are met. This rule aims to protect buyers who unknowingly purchase goods involved in such contracts, ensuring fair and transparent transactions. Buyers need to investigate thoroughly to avoid getting involved in transactions affected by problematic contracts.
Transfer of Title by Non-Owners: Meaning and Rules
In the world of business transactions, the ownership of goods is a critical aspect. The Sale of Goods Act deals with how ownership, known as title, of goods can be transferred. Normally, only the true owner of goods can transfer ownership. However, there are exceptions outlined in the Act that allow those who aren’t the owners to transfer ownership under certain conditions. This exception, often termed “Transfer of Title by Non-Owners,” lays out specific rules guiding such transfers. These rules aim to ensure fairness and clarity in commercial dealings. For example, if a mercantile agent sells goods with the owner’s approval, the buyer can rightfully own those goods. Similarly, if a person sells goods they obtained through fraud, but the buyer is unaware of the fraud, they may still acquire valid ownership. Understanding these rules is vital for businesses to navigate transactions smoothly and avoid disputes over ownership rights. Overall, these provisions under the Sale of Goods Act 1930 provide a framework for legitimate transfers of ownership, even when the seller isn’t the rightful owner.
Geeky Takeaways:
- ‘Nemo dat quod non habet’ is a Latin maxim which means no one can give what he/she doesn’t have.
- The above-mentioned is the ground principle regarding the transfer of title.
- Sections 27 to 30 of the Sale of Goods Act, 1930 specify the laws related to the transfer of title.
- Section 27 of the Act deals with the sale by a person who is not the owner.
Table of Content
- What is Transfer of Title by Non-Owners under Sale of Goods Act?
- 1. Sale by Mercantile Agent
- 2. Sale by Joint Owner
- 3. Sale by Seller in Possession after Sale
- 4. Sale by a Person in Possession under Voidable Contract
- 5. Sale by Seller in Possession after Sale
- 6. Sale by Buyer in Possession after Agreement to Buy
- 7. Resale by an Unpaid Seller
- 8. Exceptions under any other Acts
- Transfer of Title by Non-Owners- FAQs