A horse was jointly owned by Asish and Gina. It was sold to Bimal by Asish who was in sole possession of the horse for the purpose of selling the horse with consent of Gina. After the sale Gina did not approve the sale a
CS Executive · Economic, Business and Commercial Laws · PYQS · June 2024
A horse was jointly owned by Asish and Gina. It was sold to Bimal by Asish who was in sole possession of the horse for the purpose of selling the horse with consent of Gina. After the sale Gina did not approve the sale and pleaded "Nemo Dat Quod Non Habet". Explain whether Gina's argument is valid as per provisions of the Sale of Good Act, 1930.
Answer & Explanation:
As per provisions of the Sale of Goods Act, 1930 only the owner of goods can sell the goods. Conversely, the sale of an article by a person who is not or who has not the authority of the owner, gives no title to the buyer. The rule is expressed by the maxim, "Nemo Dat Quod Non Habet" i.e, no one can pass a better title than he himself has. It means that a seller of goods cannot give a better title to the buyer than he himself possess. Thus, even a bona fide buyer who buys stolen goods from a thief or from a transferee from such a thief can get no valid title to them, since the thief has no title, nor could he give one to the transferee. One of the exceptions to this rule is when buyer buy's goods from a co-owner in good faith who is in sole possession of the goods with the permission of his co-owners will get good title to goods. Thus, Bimal gets a good title to the horse as the horse was in possession of Asish with permission of Gina for sale of the horse and they are co-owners.
Topics: Sale of Goods Act, 1930
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