Misappropriated the proceeds. The buyer (A) resold the car to K the defendant. It was held that A had obtained a good title to the car from the merchantile agent and conveyed a good title to K, the ultimate buyer, and therefore F, the real owner cannot recover the car from K.
Transfer Of Title By Estoppels
As we have learnt earlier, estoppel arises when a person by his/her words or conduct makes another person believe that certain affairs existed. He/she later on not allowed to deny that such a state of affairs did not exist. Applying this rule to a contract of goods act, where the true owner of the goods by his act or omission leads an innocent buyer to believe that the seller has the ...view middle of the document...
Thus, under the law of estoppel, the buyer gets the ownership despite the fact that the seller is not the true owner.
It must, however, be noted that the rule of estoppel may be applied for mere carelessness on part of the owner of goods. Negligible on the part of a person in conduct of his own affairs should supersede the mere carelessness and should also amount to a disregard of his obligation towards the defendant. For example, A, who deals in racehorses, allows B to take away one of his horses to show it to a potential customer. There is no customer, in fact, at that point of time and B rides for few days and then disposes it of to C. In this case, A, the true owner cannot be estoppeled from taking back his horse from C.
Sale By One Of The Joint Owners
Section 28 provides, if one of several joint owners of goods has sole possession thereof, with the permission of the others, the property in the goods is transferred to any person who buys them from such joint owner for value and without being aware of the fact that the seller has no authority to sell, the buyer will acquire a good title thereto. Ordinarily, a co-owner can only transfer his/her share, i.e, the buyer would obtain only the title of co-owner. But this section enables a co-owner to sell not only his/her share but also of other co-owners (provided the co-owner was in possession with the consent of other co-owners) and, thereby, constitute an exception to the rule that ‘no one can give what he has not got’. For instance, A,B and C are the joint – owner of a car. With the consent of B and C, the car was in the custody of A. A sells the car to P who purchases it for value. Without notice of the...