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: A. He has the authority of the owner to do so
Explanation (300+ words):
In the sale of goods, the basic legal principle is encapsulated in the Latin maxim “nemo dat quod non habet,” which means “no one can give what they do not have.” This principle is enshrined in many legal systems and statutes, including the Sale of Goods Act, and it generally means that a seller cannot transfer a better title to goods than he himself possesses.
This rule protects the rights of the true owner of the property and helps prevent fraud or unauthorized sales. However, there are exceptions to this rule that allow a person who is not the true owner to transfer a valid title to a buyer if certain conditions are met. One of the key exceptions is when the seller has the authority of the true owner to sell the goods.
Let’s break down the answer options:
- Option A: He has the authority of the owner to do so
✅ This is correct because a seller who acts with the authority (either actual or apparent) of the true owner can legally transfer ownership to a buyer. For instance, an agent acting on behalf of the principal (the true owner) can validly transfer title. - Option B: He is the true owner of the property
❌ While it is true that the actual owner can always transfer ownership, this option is not broad enough. A person can also lawfully transfer title if they have the owner’s authority, even if they themselves are not the owner. - Option C: All of the above
❌ This implies both A and B must be true simultaneously, which isn’t necessary. A seller need not be the true owner if they have the owner’s authority. - Option D: None of the above
❌ This is clearly incorrect.
Therefore, Option A is the best and most legally accurate answer.