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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

Under Section 29, Deepak obtained goods from Seema under a contract voidable for fraud. Seema had not rescinded the contract when Deepak sold the goods to Rohit, who bought in good faith and without notice of any defect in Deepak's title. What is the position?

Rohit acquires a good title. Section 29 protects a buyer who purchases in good faith and without notice of the seller's defect of title, where the seller got possession under a voidable contract that had not been rescinded at the time of the sale.

  1. ARohit acquires a good titleCorrect
  2. BRohit acquires no title because Deepak had none
  3. CSeema may recover the goods from Rohit as owner
  4. DRohit gets title only if Seema ratifies the sale

Explanation

Section 29 provides that when the seller obtained possession under a contract voidable under the Contract Act but it was not rescinded at the time of sale, the buyer acquires a good title provided he buys in good faith and without notice of the seller's defect of title. Rohit satisfies all conditions, so he gets good title.

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