TRANSFER OF TITLE

by • 24/06/2013 • GeneralComments (0)332

Q.3      No one can transfer a better title to another then he himself has”? Explain what are the exceptions of this rule?   

Ans:    TRANSFER OF TITLE

It is general rule only the owner of the goods can sell goods. No one else can transfer a better title of goods then he himself has. If a seller sells such goods, which are not the property of the seller, the buyer gets no title of the goods he buys on good faith. In this way the turn owner of the goods is protect against the claim of the buyer who goods from non-owner of the goods.

EXAMPLES

1.         A hires car from B and sells to C. In this case C will have no title of car because, a seller of car himself has no title to transfer it to C.

2.         If a finder or a thief sells goods, the buyer of such goods will have no title against true owner.

EXCEPTIONS OF THE RULE

There are some cases where the seller’s title is defective but the buyer has good title of the goods sold to him. These exceptions of the general rule have been discussed as under”.

SALE UNDER THE IMPLIED AUTHORITY

If the true owner of the goods shows by his conduct or by an act to the buyer that the seller has authority to sell the goods, then the buyer will have goods title of the goods.

EXAMPLE

Aslam sells his father’s horse in the presence of his father who has no objection to this sale, the buyer will have good title.

2.         SALE BY CO-OWNER

When a co-owner of the goods having sole possession of them sells goods with the permission of the other co-owners, the buyer will have goods title of the goods purchased by him on good faith.

3.         SALE BY MERCANTILE AGENT

A mercantile agent is a person who in the ordinary course of business has authority to sell or purchase goods on behalf of the principal (his master). If the buys goods from such agent, he gets a good title.

4.         SALE BY A PERSON IN POSSESSION UNDER VOIDABLE CONTRACT

When a person having goods in possession under voidable contract sells them, the buyer who buys goods on god faith acquires a good title if at the time of sale the contract has not been rescinded and buyer has no notice of seller’s default in title.

5.         SALE BY SELLERJN POSSESSION AFTER SALE

The buyer acquires goods title if he purchases goods from the seller who has already sold them but goods are still in seller’s possession provided that the buyer has not any notice of previous sale,

6.         SALE BY UNPAID SELLER

An unpaid seller who has exercised his right of Hen or stoppage in transit and has given reasonable time and notice to sell the goods, the buyer of such goods gets goods title.

7.         SALE BY BUYER IN POSSESSION SALE

If the person who has bought or agreed to buy goods, which are in possession of him but seller, still has lien or right over the goods and the buyer sells the same with the consent of the seller, the buyer of the goods will have goods title.

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