Tuesday, 16 August 2011

A seller cannot convey a better title to the buyer then he has himself or Discuss the rule of law owned point out the exception

Transfer of Title By The Owner :-

"A seller cannot convey a better title to the buyer then he himself has."

Only the owner of the goods or his authorized person can sell the goods. If the seller is not the owner of the good then a buyer can not become the owner of the good even he has paid the value of good.

Example :- Mr. Nonee steal a car and sells to Mr. Rao for sale. Mr. Rao cannot become the owner of a car because Mr. Nonee seller was not the owner of car.

1. Agent Exceptions of Rules :-
If goods are in a possession of a mercantile agent, he can pass a good title even he had no authority or his authority was restricted.

2. Sale By Unpaid Seller :-
An unpaid seller can sell the goods to the subsequent buyer if first buyer fails to make the full payment.

Example :- Mr. Fiji sells a horse to Miss. Fauzi for ten thousand and receives Rs. 3 thousand advance. Miss. Fauzi promises to pay the balance on next Sunday at the time of delivery. Miss. Fauzi does not pay the balance on Sunday. Mr. Fiji retains the horse and sells it to Mr. Maddy.

3. Sale By Pledgee :-
Under some special circumstances a pledgee can also sell the goods and buyer also gets a good title.

Example :- Mr. Nelson borrows Rs. 10 lac from commercial bank and pledges his 10 acre land. Mr. Nelson fails to return the loan and Commercial bank sells the land to Mr. Rishi the buyer gets the good title.

4. Sale of Lost Goods :-
If a person finds some lost good. Finder can sell the goods under some circumstances. The buyer gets the good title.

Example :- Mr. Zaib finds a lost cow in the well. He hires the services of some people and draws the cow out of well. He spends Rs. 5 thousand on this event. Mr. Rana owner of the cow comes to know about the refuses to pay Rs. 5 thousand to Mr. Zaib. Mr. Zaib sells the cow Mr. Kumar. Mr. Kumar gets a good title.

5. Mercantile Agent :-
If the goods or documents of title are in the possession of a mercantile agent, he can pass a good title. He can convey a better title to the buyer without having any authority to do so.

6. Second Sale Due To Possession :-
A person has sold the goods but the goods or documents continuously remains in his possession. He may sell them to the third party. If third party obtains the delivery of the goods and he has no knowledge about the previous sale he will get a good title.

Example :- Mr. Kohli sells a horse to Miss. Jolly has no place to keep it in her house. She leaves the horse in the house of Mr. Kohli. Mr. kohli sells horse Miss. Preety fraudulently who buys in god faith. Miss. Preety will get a good title to the horse.

7. Sale By One of the Joint Owner :-
If there are many partners in business and one of them has the sole possession of goods with the permission of the other partners. If he sells the goods, the buyer will get a good title of goods, if he buys in good faith.

Example :- There are three parties "X", "Y" and "Z". They own a shop in common. Shop is in the possession of "X" and he looks after the shop. "X" sells the shop to "M". "M" gets a good title.

8. Sale Under Implied Authority :-
In some cases the conduct or any act of owner of goods leads the buyer to believe that seller id the owner of the goods. It is presumed that seller has the authority to sell the goods. In such cases buyer can get a better title of goods than the seller.

Example :- Mr. Nazir a factory owner gives his employee. Mr. Rashid a quarter for living and also allows to repair. Mr. Rashid writes his name on the quarter and also do some repair to induce the public to believe that quarter belongs to him. Miss Sonny purchased the house from Mr. Nazir in good faith. So Sonny acquires a good title than a seller.

9. Sale Under Voidable Contract :-
If a person obtains the goods under voidable contract and sells before the revocation of contract to other person. The buyer who obtains such goods has better title of goods if he acts in good faith.

Example :- Mr. Shan by misrepresentation induced Mr. Hafiz to sell and deliver his car to him. After obtaining the car he sells the car to Miss. Nida before the revocation of contract. Miss Nadia purchases the car in good faith and she does not know that title is defective. She acquires a good title.

10. Solvency Case :-
In case of companies and individuals the official receiver can convey better title to the buyer.

Example :- Mr. Sher becomes insolvent. Mr. Naveed is the official receiver of Mr. Sher, and he can sell some goods of Mr. Sher to Mr. Ali. Mr. Ali gets a good title.

11. Sale Before the Agreement To Buy :-
A buyer obtains possession of the goods with the consent of the seller, he may sell or pledge before the agreement completes.

Example :- Mr. Shuka agrees to buy a bus a pay for it, if his lawyer approves it. Mr. Shuka obtained the possession of the bus and sells to Miss. Neelum. After his lawyer disapproves. In this case Miss. Neelum gets a good title.


Anonymous,  18 October 2011 at 09:20  

S/B "than" -- not "then" in the headline. Ignorant mistake.

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