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.
Join The Discussion
Comments (1)
The Sale of Goods Act, 1930 is based on:
A. The English Bill of Exchange Act, 1882
B. The Transfer of Property Act, 1882
C. The English Sale of Goods Act, 1893
D. The Indian Contract Act, 1872
Which of the following is not the right of an unpaid seller under Sale of Goods Act, 1930:
A. Right of lien on goods for the price while the goods are in possession of seller
B. Right of stopping the goods in transit, in case of insolvency of buyer
C. Right of resale as limited by the Act
D. Right of withholding delivery where the property in the goods has passed to the buyer
Under section 9 of the Sale of Goods Act, 1930, what is a reasonable price is
A. A question of fact
B. A question of law
C. A mixed question of fact and law
D. Only (C) and not (A) or (B)
Before the enactment of Sale of Goods Act, the provisions regarding Sale of Goods were contained in:
A. Indian Contract Act, 1872
B. Indian Registration Act, 1908
C. Transfer of Property Act, 1882
D. Indian Partnership Act, 1932
Any reason for answer