Sale by Non Owners

Presentation-Sale by Non

Owners

04/11/23 1Asma Manhas

Sale by a Non-OwnersNormally, 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


Sale by Mercantile agent

• Where a mercantile agent, with the consent the owner, in possession of the goods makes a sale in an ordinary course of his business, such sale shall be valid provided the buyer acts in good faith and without notice that the seller had no authority to sell.

• In this case the buyer acquires a good title to the goods, though the seller had no authority to sell


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, and induces him to buy them in that belief.


Sale by a joint Owner

• Where one of several joint owners , has the sole possession of the goods by permission of co-owners, 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.


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. But, this exception is available only for contracts of sale voidable under Sec. 19 and 19A i.e., voidable on the grounds of coercion, fraud, misrepresentation and undue influence. It does not extend to all voidable contracts


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, if such third party obtains delivery in good faith and without notice of previous sale, he gets a good title.


Sale by buyer in possession after Sale

• Sec 30(2) provides that where the buyer having brought or having agreed to buy 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, it will be a good sale.

• This exception will not apply, if , at the time of the sale the buyer was not in possession of the goods.


Sale by an unpaid seller

• Where an unpaid seller who has a right of lien or stoppage in transit resells the goods, the buyer acquires a good title as against the original owner. Thus a buyer at a resale acquires a better title.


Other Exceptions

• 1. Finder of Goods a)When the thing is in danger of perishing or of

loosing greater part of the value, or

a)When the lawful charges of the finder, in respect of the thing found, amounts to two thirds of its value


Section 176 of Contract Act

• Under section 176 of the contract Act, 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.


Court officers and liquidators

• In some cases, a special power of sale is given to officers of court, liquidators of companies, receivers of insolvent’s estate, custom officers for duties remaining unpaid etc.

• All these persons are not owners, yet they sell properties of others , and convey a better title to the buyers than they themselves possess.


Thank You


Sale by Non Owners

Documents

Transcript of Sale by Non Owners