PresentationSale by Non Owners

12/8/2010

Asma Manhas

1

Sale by a Non-Owners Normally. you can only sell what you own but there are a few exceptions ‡ Sale by Mercantile agent ‡ Sale under implied authority of owner ‡ Sale by a joint Owner ‡ Sale by a person in possession of voidable goods under a voidable contract ‡ Sale by seller in possession after sale ‡ Sale by buyer in possession after Sale ‡ Sale by an unpaid seller 12/8/2010 Asma Manhas 2 .

in possession of the goods makes a sale in an ordinary course of his business. ‡ In this case the buyer acquires a good title to the goods. with the consent the owner.Sale by Mercantile agent ‡ Where a mercantile agent. though the seller had no authority to sell 12/8/2010 Asma Manhas 3 . such sale shall be valid provided the buyer acts in good faith and without notice that the seller had no authority to sell.

12/8/2010 Asma Manhas 4 . and induces him to buy them in that belief.Sale under implied authority of owner ‡ Where the owner by his conduct causes the buyer to believe that the seller was the owner of goods. or had the owner s authority to sell the goods.

12/8/2010 Asma Manhas 5 . the property in the goods is transferred to any person who buys them from such joint owner in good faith and without notice that the seller had no authority to sell. has the sole possession of the goods by permission of co-owners.Sale by a joint Owner ‡ Where one of several joint owners .

But. misrepresentation and undue influence. It does not extend to all voidable contracts 12/8/2010 Asma Manhas 6 .. 19 and 19A i.Sale by a person in possession of voidable goods under a voidable contract ‡ Sec. 29 provides that a person in possession of goods under a voidable contract which has not been cancelled can transfer a good title to the buyer who buys the goods in good faith and without notice of seller s defect of title. this exception is available only for contracts of sale voidable under Sec. voidable on the grounds of coercion. fraud.e.

12/8/2010 Asma Manhas 7 . if such third party obtains delivery in good faith and without notice of previous sale. he gets a good title.Sale by seller in possession after sale ‡ Sec 30 provides that where a person has sold but continues in possession of goods or the documents of title to them may sell them to a third party.

it will be a good sale. 12/8/2010 Asma Manhas 8 .Sale by buyer in possession after Sale ‡ Sec 30(2) provides that where the buyer having brought or having agreed to buy goods. if . at the time of the sale the buyer was not in possession of the goods. obtain with the consent of the seller possession of the goods or of documents of title to the goods and sells them to a bonafide transferee. ‡ This exception will not apply.

12/8/2010 Asma Manhas 9 . Thus a buyer at a resale acquires a better title. the buyer acquires a good title as against the original owner.Sale by an unpaid seller ‡ Where an unpaid seller who has a right of lien or stoppage in transit resells the goods.

in respect of the thing found. amounts to two thirds of its value 12/8/2010 Asma Manhas 10 .Other Exceptions ‡ 1. or a) When the lawful charges of the finder. Finder of Goods a) When the thing is in danger of perishing or of loosing greater part of the value.

a Pawnee of goods has the power to sell the goods pawned under certain conditions and he passes a better title than he himself has. 12/8/2010 Asma Manhas 11 .Section 176 of Contract Act ‡ Under section 176 of the contract Act.

yet they sell properties of others . 12/8/2010 Asma Manhas 12 .Court officers and liquidators ‡ In some cases. a special power of sale is given to officers of court. custom officers for duties remaining unpaid etc. and convey a better title to the buyers than they themselves possess. receivers of insolvent s estate. ‡ All these persons are not owners. liquidators of companies.

Thank You 12/8/2010 Asma Manhas 13 .

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