Alhaji Sani purchased an industrial printing machine from a machinery merchant and paid in full, agreeing to collect the item the following morning. Before Alhaji Sani returned, the merchant sold and delivered the exact same printing machine to a second customer who bought it in good faith and without notice of the prior transaction. Under the Sale of Goods Act, what legal title does the second customer acquire to the machine?
- A valid and complete title, because a seller who remains in possession of goods after sale can pass good title to a bona fide purchaser.Cevap
- BNo title whatsoever, because property had already passed to Alhaji Sani under the general principle of nemo dat quod non habet.
- CA voidable title that terminates automatically once Alhaji Sani presents his original purchase receipt.
- DA temporary right of possession, which requires written ratification from Alhaji Sani to convert into full ownership.
Cevap
The second customer acquires a valid title to the printing machine because under Section 25(1) of the Sale of Goods Act, a seller remaining in possession of goods after a sale can convey good title to a third party acting in good faith without notice of the previous sale.
Under Section 25(1) of the Sale of Goods Act, when a seller who has sold goods remains in possession of them or of the documents of title, the delivery or transfer of the goods under any sale by that seller to a person receiving them in good faith and without notice of the previous sale passes a valid title. The second purchaser is fully protected as a bona fide buyer for value without notice.
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Anahtar Kavram
Exceptions to Nemo Dat Quod Non Habet: Disposition by Seller in Possession
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