Under sections 27–30 of the Sale of Goods Act, 1930, which transaction falls outside the statutory…
The general rule in section 27 is that a buyer acquires no better title than the seller has, subject to statutory exceptions. Section 29 covers certain dispositions under a…
Choose your answer
Under sections 27–30 of the Sale of Goods Act, 1930, which transaction falls outside the statutory exceptions to nemo dat quod non habet?
Answer and explanation
Correct answer C
The general rule in section 27 is that a buyer acquires no better title than the seller has, subject to statutory exceptions. Section 29 covers certain dispositions under a voidable contract before rescission. Section 30(1) covers certain dispositions by a seller who remains in possession after sale. Section 30(2) can protect a good-faith recipient who lacks notice of the original seller's lien or other right, but the person who bought or agreed to buy must have obtained possession with the seller's consent.
Option feedback
Option A
Section 29 protects a good-faith buyer without notice when the transferor's voidable contract has yet to be rescinded.
Option B
Section 30(1) protects a good-faith recipient without notice of the previous sale where the seller continues in possession after that sale.
Option C
Section 30(2) requires possession obtained with the seller's consent. The sub-buyer's good faith cannot supply that missing requirement.
Option D
Section 30(2) protects the good-faith sub-buyer without notice where the buyer received possession with the seller's consent.
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