Business Laws
The Sale of Goods Act, 1930
5% weightage

Transfer of Title

Complete study guide with 14 practice questions, detailed explanations, and expert solutions for Transfer of Title in CA Foundation Business Laws.

Practice Questions

14
Total Questions
3
Easy
7
Medium
4
Hard
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Study Notes: Transfer of Title

Free study material for CA Foundation Business LawsThe Sale of Goods Act, 1930

Transfer of Title (Sections 27-30) determines when buyer gets legal right to sell goods. Nemo dat rule: One without property cannot transfer property. Exceptions: (1) Mercantile agent—can transfer goods held in agency capacity; (2) Seller in possession—can transfer after sale if retains possession; (3) Buyer in possession—can transfer before payment if given possession; (4) Motor Vehicles Act provisions. Estoppel principle: Owner estopped if conduct induced belief of valid sale. Case law: Bishopsgate Motor Finance v. Transport Brakes establishes exceptions scope. Buyer protection: Buyer purchasing from seller lacking title takes goods at buyer's risk unless exceptions apply. Seller in possession: Seller retaining possession after sale can transfer to another buyer; original buyer's remedy is against first seller. Buyer in possession: Buyer receiving goods before payment can transfer valid title if buyer appears to be merchant. For accountants, title transfer differs from property transfer; understanding gaps protects client interests. Exam tip: Identify whether seller had title; apply nemo dat exceptions; determine buyer's legal standing.

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