SALE BY NON OWNERS ( NEMO DAT QUOD NON HABET)

• SALE BY NON OWNERS
  NEMO DAT QUOD NON HABET
• SALE OF GOODS ACT 1930

SALE BY NON OWNERS

1. IN THE CASE OF TRANSFER OF OWNERSHIP OF GOODS FROM THE SELLER TO THE BUYER ,IT IS PRESUMED THAT THE SELLER IS  FULL OWNER OF THE GOODS AND ON TRANSFER THE BUYER ALSO BECOME AN ABSOLUTE OWNER OF THE GOODS
2. BUT WHERE THE SELLER IS NOT AN ABSOLUTE OWNER OF THE GOODS,THE BUYER WILL NOT GET  A BETTER TITLE THAN WHAT THE SELLER HIMSELF HAS

• GENERAL RULE : NO MAN CAN SELL GOODS AND GIVE A GOOD TITLE UNLESS HE IS THE OWNER
• THE RULE IS EXPRESSED BY THE MAXIM : NEMO DAT QUOD NON HABET
• MEANS NO ONE CAN PASS A BETTER TITLE THAN HE HIMSELF HAS
• IF A PERSON TRANSFERS ARTICLES NOT BELONGING TO HIM THE TRANFEREE GET NO TITLE ALTHOUGH HE MAY HAVE IN GOOD FAITH AND MAY HAVE PAID FOR THE GOODS
• THE RULE OF NEMO DAT QUOD NON HABET : IS INCORPORATED IN SECTION 27 OF THE SALES OF GOODS ACT WHICH PROVIDES THAT NO ONE CAN GIVE WHAT HE HAS NOT GOT
• A PERSON WHO HAS NO TITLE TO PROPERTY CAN CONVEY NONE
• THE LOGIC BEHIND IS MEANT TO PROTECT THE TRUE OWNERS AND THE FACT OF AN INNOCENT AND BONAFIDE PURCHASER FROM THE NON OWNER CANNOT DISLODGE THE CLAIM OF TRUE OWNERS
• VARIOUS CASES
•  EDWARD V VAUGHAN :

• A DELIVERED GOODS ON SALE OR RETURN TO B UPON THE CONDITIONS THAT THEY WERE TO REMAIN THE PROPERTY OF A UNTIL PAID FOR. B SOLD THEM TO C WITHOUT PAYING A FOR THEM. C BOUGHT ON GOOD FAITH AND WITHOUT NOTICE OF A’S TITLE AND HELD A COULD RECOVER THE GOODS OR THEIR VALUES FROM C.
• A HORSE WAS SOLD AT PUBLIC AUCTION. THE HORSE WAS STOLEN ONE BUT THE AUCTIONEER HAD NO KNOWLEDGE OF THE FACT AND THE BUYER PURCHASED IN GOOD FAITH AND HELD THAT BUYER HAD OBTAINED NO TITLES AGAINST THE TRUE OWNER.

• A FOUND A RING IN A GARDEN AND AFTER MAKING REASONABLE EFFORTS TO DISCOVER THE OWNER SOLD IT TO B.
• B BOUGHT IT WITHOUT KNOWLEDGE THAT A WAS MERELY A FINDER. HELD THE TRUE OWNER COULD RECOVER THE RING FROM B.

• EXCEPTION TO THE RULE

• A PERSON ALTHOUGH HE IS NOT THE OWNER OF GOODS,MAY SELL THE GOODS AND PASS A BETTER TITLE THAN HE HIMSELF HAS. VARIOUS EXCEPTIONS TO THE RULE :

1. SALE BY A MERCANTILE AGENT ( SEC 27)
2. SALE UNDER THE IMPLIED AUTHORITY OF OWNER OR TITLE BY ESTOPPEL ( SECTION 27)
3. SALE BY ONE OF JOINT OWNERS ( SECTION 28)
4. SALE BY A PERSON IN POSSESSION OF GOODS UNDER A VOIDABLE CONTRACT
5. SALE BY SELLER IN POSSESSION AFTER SALE
6. EXCEPTION TO THE RULE
7. SALE BY UNPAID SELLER
8. EXCEPTIONS UNDER OTHER ACTS
9. SALE IN MARKET OVERT

• SALE BY A MERCANTILE AGENT ( SEC 27)
• WHERE A MERCANTILE AGENT IS WITH CONSENT OF THE OWNER IN POSSESSION OF THE GOODS AND SALE IS MADE BY HIM IN THE ORDINARY COURSE OF HIS BUSINESS ,SUCH SALE SHALL BE VALID PROVIDED THE BUYER ACTED IN GOOD FAITH AND WITHOUT NOTICE THAT THE SELLER HAD NO AUTHORITY. BUYER GETS GOOD TITLE.
• A MERCANTILE AGENT MEANS AN AGENT HAVING IN THE CUSTOMARY COURSE OF BUSINESS AS SUCH AGENT AUTHORITY EITHER TO SELL GOODS OR TO CONSIGN GOODS FOR THE PURPOSE OF SALE OR TO BUY GOODS OR TO RAISE MONEY ON THE SECURITY OF GOODS.
• CONDITIONS :-

1. PERSON MAKING THE SALE SHOULD BE MERCANTILE AGENT
2. MUST BE HAVING POSSESSION OF THE GOODS
3. WITH THE OWNER OF THE GOODS
4. MUST HAVE MADE THE SALE WHEN ACTING IN THE ORDINARY COURSE OF BUSINESS OF MERCANTILE AGENT
5. THE BUYER MUST ACT IN GOOD FAITH
6. NO NOTICE OF THE CONTRACT OF SALE NOTICE

• CASE  FOLKES V KING

1.  P THE OWNER OF A MOTOR CAR,DELIVERED TO A MERCANTILE AGENT TO SELL ON COMMISSION SUBJECT TO A RESERVE PRICE
2. THE AGENT SOLD IT TO S A BONAFIDE PURCHASER BELOW THE RESERVE PRICE AND MISAPPROPRIATED THE MONEY
3. S SUBSEQUENTLY SOLD THE CAR TO D
4. P ( OWNER OF MOTOR CAR ) CANNOT RECOVER THE CAR FROM D S THE PROPERTY IN THE CAR HAD PASSED TO D

• SALE UNDER THE IMPLIED AUTHORITY OF OWNER OR TITLE BY THE ESTOPPEL ( SECTION 27)
• PRINCIPLE OF ESTOPPEL IE UNDER CERTAIN CIRCUMSTANCES THE TRUE OWNER MAY BE PREVENTED BY THE HIS CONDUCT FROM DENYING THE SELLER’S AUTHORITY TO SELL
•  WHERE THE OWNERS BY HIS WORDS OR CONDUCT CAUSES THE BUYER TO BELIEVE THAT THE SELLER WAS THE OWNER OF THE GOODS OR HAD THE OWNER’S AUTHORITY TO SELL THEM AND INDUCED HIM TO BUY THEM IN THAT BELIEF HE CANNOT AFTER WARDS SET UP THE SELLER’S WANTS OF TITLE OR AUTHORITY TO SELL
•  O’ CONNOR V CLARK  ( CASE )
• A ,THE OWNER OF A WAGON ALLOWED ONE OF HIS EMPLOYEES B TO HAVE HIS NAME  PRINTED TO IT. A DID SO FOR THE PURPOSE OF INDUCING THE PUBLIC TO BELIEVE THAT THE PROPERTY BELONGED TO B. C PURCHASED THE WAGON FROM B IN GOOD FAITH. C ACQUIRES A GOOD TITLE AS A IS ESTOPPED FROM DENYING B’S AUTHORITY TO SELL
• SALE BY ONE OF JOINT OWNERS ( SECTION 28)
• WHERE ONE OF SEVERAL JOINT OWNERS HAS SOLE POSSESSION OF THE GOODS BY PERMISSION OF THE CO OWNERS THE PROPERTY IN THE GOODS IS TRANSFERRED TO ANY PERSON WHO BUY THEM FROM SUCH JOINT  OWNERS IN GOOD FAITH AND WITHOUT NOTICE THAT THE SELLER HAD NO AUTHORITY TO SELL.
• CONDITIONS :
• ONE OF THE SEVERAL JOINT OWNERS OF GOODS MUST BE IN SOLE POSSESSION OF THE GOODS
• THE JOINT OWNER MUST BE IN POSSESSION OF THE GOODS BY PERMISSION OF THE CO OWNERS
• THE BUYER SHOULD PURCHASE THE GOODS IN GOD FAITH
• THE BUYER SHOULD NOT AT THE  CONTRACT OF SALE HAVE NOTICE THAT THE SELLER HAS NO AUTHORITY TO SELL.
• SALE BY ONE OF JOINT OWNERS ( SECTION 28)

1. A,B AND C ARE JOINT HINDU BROTHERS WHO CERTAIN CATTLE IN COMMON
2. B AND C LEAVE THE COW IN THE POSSESSION OF A WHICH SELLS A TO D
3. D MAKES THE PURCHASE IN GOOD FAITH
4. THE PROPERTY IN THE COW IS TRANSFERRED TO D

• SALE BY A PERSON IN POSSESSION OF GOODS UNDER A VOIDABLE CONTRACT
• SECTION 29 DEALS WITH THE CASE OF A SALE BY A PERSON WHO HAS OBTAINED THE POSSESSION OF GOODS UNDER A VOIDABLE CONTRACT.
• IT PROVIDES THAT A PERSON IN POSSESSION OF GOODS UNDER A VOIDABLE CONTRACT WHICH HAS NOT BEEN RESCINDED CAN TRANSFER A GOOD TITLE TO THE BUYER WHO BUYS THE GOOD IN GOOD FAITH AND WITHOUT ANY NOTICE OF THE DEFECT OF THE SELLERS’ DEFECT OF TITLE. EXCEPTION IS LIMITED TO CONTRACT VOIDABLE ON THE GROUND OF COERCION,FRAUD,MISREPRESENTATION AND UNDUE INFLUENCE
• SALE BY A PERSON IN POSSESSION OF GOODS UNDER A VOIDABLE CONTRACT
• CONDITIONS :

1. THE GOODS MUST BE IN POSSESSION OF THE BUYER
2. THE SELLER MUST BE IN POSSESSION OF THE GOODS UNDER VOIDABLE CONTRACT UNDER SECTION 19 AND 19 A
3. THE CONTRACT MUST HAVE BEEN RESCINDED AT THE TIME OF SALE
4. THE BUYER MUST BUY IN GOOD FAITH AND WITHOUT NOTICE OF THE SELLER’S DEFECT OF TITLE

• CASE
•  PHILIPS AND BROOKS :
• A FRAUDULENT PERSON POSED HIMSELF TO BE RESPECTABLE PERSON AND OBTAINED FROM A SHOPKEEPER A VALUABLE RING BY GIVING A WORTHLESS CHEQUE
• BEFORE THE FRAUD COULD BE DISCOVERED THE CHEAT HAD PLEDGED THE RING WITH A BONAFIDE PLEDGEE WHO IT WAS HELD OBTAINED A GOOD TITLE
• SALE BY SELLR IN POSSESSION AFTER SALE
• SECTION 30 (1) PROVIDES THAT A WHERE A PERSON HAS SOLD BUT CONTINUES IN POSSESSION OF THEM OR OF THE DOCUMENTS OF TITLE TO THEM HE MAY SELL THEM TO THIRD PERSON AND IF SUCH PERSON OBTAINS DELIVERY IN GOOD FAITH AND WITHOUT NOTICE OF PREVIOUS SALE.
• GETS A GOOD TITLE
• CONDITIONS :

1. SELLER SHOULD BE IN POSSESSION AFTER SALE
2. DELIVERY OR TRANSFER OF THE GOODS OR DOCUMENTS OF TITLE BY THE SELLER OR BY A MERCANTILE AGENT ACTING FOR HIM
3. SECTION 30 DOES NOT REQUIRE THAT THE SELLER MUST HAVE PHYSICAL POSSESSION OF THE GOODS. ENOUGH HE IS HAVING CONTROL SUCH GOODS

• EXAMPLE

1. A SOLD CERTAIN GOODS TO B
2. BUT GOODS WERE IN POSSESSION OF A
3. A RESOLD THE GOODS TO ANOTHER PERSON C
4. HELD THAT SECOND PURCHASER HAD ACQUIRED A GOOD TITLE.

• SALE BY THE BUYER IN POSSESSION AFTER SALE
• SECTION 30(2) DEALS WITH A CASE WHERE A BUYER HAVING BOUGHT OR AGREED TO BUY GOODS
• OBTAINS GOODS WITH T THE CONSENT OF THE SELLER POSSESSION OF THE GOODS OR OF DOCUMENTS OF THE TITLE OF GOODS AND SELLS THEM TO BONAFIDE THE TRANSFEREE
• EXCEPTION WILL NOT APPLY IF THE BUYER HAS NOT HAVING POSSESSION OF THE GOODS
• CONDITIONS :BUYER IS IN POSSESSION OF THE GOODS OR THE DOCUMENTS OF THE TITLE TO THE GOODS
• TRANSFER IS BY BUYER OR MERCANTILE AGENT
• THE SUBSEQUENT BUYER RECEIVES THE SAME IN GOOD FAITH
• LEE V BUTLER

1.  FURNITURE WAS DELIVERED TO X UNDER AN AGREEMENT THAT THE PRICE WAS TO BE PAID IN TWO INSTALLMENT
2. THEN FURNITURE TO BECOME THE PROPERTY OF X ON PAYMENT OF THE SECOND INSTALLMENT
3. X SOLD THE FURNITURE BEFORE SECOND INSTALLMENT WAS PAID
4. BUYER ACQUIRED GOOD TITLE.

• SALE BY AN UNPAID SELLER
• WHERE UNPAID SELLER WHO HAS THE RIGHT OF LIEN OR STOPPAGE IN TRANSIT RESELLS THE GOODS
• THE BUYER ACQUIRES A GOOD TITLE

• EXCEPTIONS UNDER OTHER ACTS

1. UNDER SECTION 169 OF THE CONTRACT ACT ,A FINDER OF THE GOODS HAS THE POWER TO SELL THE GOODS UNDER CERTAIN CONDITIONS AND THE BUYER WILL ACQUIRE A GOOD TITLE
2. UNDER SECTION 176 OF THE CONTRACT ACT, A PAWNEE OF GOODS HAS THE POWER TO SELL THE GOODS PAWNED UNDER CERTAIN CONDITIONS AND HE PASSES A BETTER TITLE UNDER THAN HE HIMSELF HAS
3. IN SOME CASES A SPECIAL POWER OF SALE IS GIVEN TO OFFICERS OF COURT ,LIQUIDATOR OF COMPANIES ETC
4. BILL OF EXCHANGE AND NEGOTIABLE INSTRUMENTS FORMS AN IMPORTANT EXCEPTION

• SALE IN MARKET OVERT

•  UNDER THE ENGLISH LAW AN IMPORTANT EXCEPTION OF THE RULE THAT A PERSON CANNOT MAKE A VALID SALE OF GOODS THAT DO NOT BELONG TO HIM