Ramesh buys a second-hand car from Suresh for ₹ 4 Lakh. The car is a stolen property of Dinesh. After two months of use Dinesh claims the car and deprives Ramesh of the car. Can Ramesh claim compensation from Suresh ?

Yes, Ramesh can claim compensation from Suresh. Section 14(a) of the Sales of Goods Act, 1930 provides that unless the circumstances of the contract are such as to show a different intention, there is an implied condition as to title that the seller, in an actual sale, has the right to sell the goods, and in agreement to sell, he will have a right to sell the goods at the time when property is to pass. As a result, if the title of the seller turns out to be defective, the buyer is entitled to reject the goods and can recover the full price paid by him. In 'Rowland v. Divall', A had bought a second-hand motor car from B and paid for it. After he had used it for six months, he was deprived of it because the seller had no title to it. It was held that B had broken the condition as to title and 'A' was therefore, entitled to recover the purchase money from B.