Tunde purchases a generator from a commercial dealer under a contract induced by fraudulent misrepresentation. Before Tunde rescinds the contract, the dealer sells and delivers the generator to Emeka, who buys it in good faith without notice of the fraud. Under the Sale of Goods Act, which of the following statements correctly describes Emeka's title to the generator?
- Emeka acquires a valid title because the seller possessed a voidable title that had not been avoided at the time of sale.Cevap
- BEmeka acquires no title because the rule of nemo dat quod non habet strictly prevents any transfer of ownership from a fraudulent seller.
- CEmeka receives a conditional title subject to paying financial indemnity to Tunde for the loss suffered.
- DEmeka holds the generator under deferred title until Tunde formally agrees to terminate his original contract.
Cevap
Emeka acquires a valid title because the seller possessed a voidable title that had not been avoided at the time of sale.
Under Section 23 of the Sale of Goods Act, where a seller has a voidable title to goods but his title has not been avoided at the time of sale, an innocent buyer who purchases in good faith and without notice acquires an unassailable legal title.
Adım Adım Çözüm
Anahtar Kavram
Sale under a Voidable Title (Exception to Nemo Dat Quod Non Habet)