Skip to content

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

Which condition must be met by a person who buys goods from one of several joint owners holding sole possession, in order to get the property in the goods?

The buyer must act in good faith and must not have notice, at the time of the contract of sale, that the joint owner in sole possession lacks authority to sell. No written consent of co-owners or special price is required.

  1. AHe must buy in good faith and have no notice that the seller lacks authority to sellCorrect
  2. BHe must obtain written consent of every co-owner before buying
  3. CHe must pay a price higher than the market price
  4. DHe must be a mercantile agent

Explanation

The rule on sale by one of joint owners requires that the buyer purchases in good faith and that, at the time of the contract, he has no notice that the seller has no authority to sell. Written consent, a premium price and agency status are not required.

Did you get it right without looking?

One question tells you little. A timed set on Sale of Goods Act, 1930 shows your real accuracy, how long you take and where you lose marks.

Practise Sale of Goods Act, 1930Free diagnostic mock

More Sale of Goods Act, 1930 questions