Examveda

If a seller is in possession of goods after the title has passed to the buyer, he can

A. Cannot resell the goods

B. Resell the goods

C. Resell only if he gets a lower price than the previous sale

D. Resell but the second buyer do not get good title

Answer: Option B

Solution (By Examveda Team)

Under Section 30(1) of the Sale of Goods Act, 1930, if a seller who has already sold the goods remains in possession of them or of the documents of title to the goods, and delivers them to a second buyer who purchases them in good faith and without notice of the previous sale, the second buyer gets a good title.

This provision is an exception to the general rule that only the owner of goods can transfer ownership (title) to another person.

Although the first buyer has already obtained the title, if the seller is still in possession and the second buyer is acting in good faith without knowledge of the first sale, the second sale is legally valid.

The law protects the second buyer to promote certainty in commercial transactions and avoid penalizing good faith purchasers.

Therefore, the seller can resell the goods, and the second buyer may obtain a valid title if the conditions under Section 30(1) are met.

This Question Belongs to Law >> Sale Of Goods Act

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Comments (1)

  1. Balkar Singh
    Balkar Singh:
    3 months ago

    Any reason for answer

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