Sale by Buyer in Possession after Agreement to Buy
According to Section 30(2) of the Sale of Goods Act, 1930 “Sale by buyer in possession after agreement to buy” rule deals with situations where a buyer, who hasn’t finished paying for goods, sells them to another person. If certain conditions are met, the second buyer can legally own the goods. For example, if someone agrees to buy a bicycle but hasn’t completed payment, and then sells it to another person, the second buyer can own the bicycle if specific conditions outlined in the law are met. This rule ensures that buyers who possess goods, even before completing payment, can transfer ownership rights to others under certain conditions. However, it’s crucial for all parties involved to understand and follow the conditions of the Sale of Goods Act to prevent any disputes or legal issues.
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