A seller of goods can only transfer all the right in goods to a buyer where : A. He has the authority of the owner to do so B. He is the true owner of property C. All of the above D. None of the above
The Correct Answer and Explanation is:
Correct Answer: C. All of the above
Explanation:
In the context of sale of goods law, especially under principles derived from common law and statutes such as the Sale of Goods Act, a fundamental principle governs the transfer of ownership in goods: “Nemo dat quod non habet”, meaning “no one can give what they do not have.”
This principle implies that a seller cannot transfer a better title to the goods than what he himself possesses. However, there are two key exceptions or conditions under which a valid transfer of ownership to a buyer can still occur:
A. He has the authority of the owner to do so
A person who is not the owner of the goods can validly transfer ownership if they have the authority (express or implied) from the rightful owner. This could arise through:
- Agency: Where the seller is acting as an agent of the owner and has authority to sell.
- Estoppel: If the true owner, by their conduct, leads the buyer to believe that the seller had the authority, the owner may be estopped from denying the seller’s authority.
B. He is the true owner of the property
If the seller owns the goods, he naturally has the legal right to transfer ownership to the buyer. This is the most straightforward case of lawful transfer of title.
Conclusion
Therefore, both scenarios—where the seller is the true owner or has the authority of the owner—enable the seller to validly transfer full ownership rights to the buyer. Thus, the correct answer is:
C. All of the above
This ensures that the buyer receives good title to the goods, protects commercial transactions, and maintains trust in the marketplace, provided the buyer acts in good faith and without notice of any defect in the seller’s title.
