- 5 Marks
Question
In sale of goods law, a buyer could acquire ownership of goods only if the seller had title to such goods.
Required:
State FIVE instances where a seller who has no title could pass a good title to the buyer in a sale of goods transaction.
Answer
Instances Where a Seller Without Title Can Pass Good Title to the Buyer
- Sale by a Mercantile Agent: If a mercantile agent sells goods within the authority granted by the owner, the buyer may acquire good title even if the agent had no ownership.
- Sale under a Voidable Title: A buyer can obtain good title if the seller’s title is voidable but has not yet been voided at the time of the sale, such as in cases of fraud.
- Sale by a Seller in Possession after Sale: If a seller retains possession of the goods after selling them and sells them to a third party in good faith, the third party may acquire good title.
- Sale by a Buyer in Possession: If a buyer who has obtained possession of the goods but not the title resells them to a third party, the new buyer may obtain good title.
- Sale under Estoppel: If the true owner’s actions lead a buyer to believe the seller has authority to sell, the owner may be estopped from denying the seller’s authority, allowing good title to pass.
- Tags: Buyer’s Rights, Good Title, Ownership Transfer, Sale of Goods
- Level: Level 1
- Topic: Sale of Goods
- Series: NOV 2020
- Uploader: Dotse