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

Under the Sale of Goods Act, 1930, the general rule where goods are sold by a person who is not the owner and who has no authority or consent of the owner to sell is that:

The buyer gets no better title than the seller had. A non-owner selling without the owner's authority or consent cannot pass a title he does not possess, unless the owner's conduct prevents him from denying the seller's authority to sell.

  1. Athe buyer acquires a better title than the seller if he paid full price
  2. Bthe buyer acquires no better title than the seller hadCorrect
  3. Cthe sale is valid if the buyer took delivery of the goods
  4. Dthe buyer acquires a good title if the goods are of a common kind

Explanation

Section 27 states that where a non-owner sells without the owner's authority or consent, the buyer gets no better title than the seller had, unless the owner is precluded by conduct from denying the seller's authority. Payment of price or delivery does not by itself cure the defect, so the other options are wrong.

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