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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

A and B are joint owners of a stock of rice. A has sole possession with B's permission and sells it to C. Which condition must C satisfy to get the property in the goods?

C must have bought in good faith without notice that A had no authority to sell. Where one joint owner has sole possession by the co-owners' permission, such a buyer receives the property in the goods under Section 28.

  1. AC must have bought in good faith and without notice that A lacked authority to sellCorrect
  2. BC must have obtained B's written approval before the sale
  3. CC must prove that the price paid was the market price
  4. DC must have resold the goods within a reasonable time

Explanation

Section 28 transfers the property to a person who buys from a joint owner in sole possession by permission of the co-owners, if he buys in good faith and without notice of lack of authority. No written approval, market price proof or resale is required by the section.

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