Presentation-

Sale by Non
Owners

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 Sale by a Non-Owners
Normally, you can only sell what you own but there
are a few exceptions
• Sale by Mercantile agent
• Sale under implied authority of owner
• Sale by a joint Owner
• Sale by a person in possession of voidable goods
under a voidable contract
• Sale by seller in possession after sale
• Sale by buyer in possession after Sale
• Sale by an unpaid seller

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 Sale by Mercantile agent
• Where a mercantile agent, with the consent
the owner, in possession of the goods makes
a sale in an ordinary course of his business,
such sale shall be valid provided the buyer
acts in good faith and without notice that the
seller had no authority to sell.
• In this case the buyer acquires a good title to
the goods, though the seller had no authority
to sell

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 Sale under implied authority of owner

• Where the owner by his conduct causes the

buyer to believe that the seller was the owner
of goods, or had the owner’s authority to sell
the goods, and induces him to buy them in
that belief.

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 Sale by a joint Owner

• Where one of several joint owners , has the

sole possession of the goods by permission of
co-owners, the property in the goods is
transferred to any person who buys them
from such joint owner in good faith and
without notice that the seller had no authority
to sell.

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 Sale by a person in possession of voidable
goods under a voidable contract
• Sec. 29 provides that a person in possession of
goods under a voidable contract which has not
been cancelled can transfer a good title to the
buyer who buys the goods in good faith and
without notice of seller’s defect of title. But,
this exception is available only for contracts of
sale voidable under Sec. 19 and 19A i.e.,
voidable on the grounds of coercion, fraud,
misrepresentation and undue influence. It
does not extend to all voidable contracts

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 Sale by seller in possession after sale
• Sec 30 provides that where a person has sold
but continues in possession of goods or the
documents of title to them may sell them to a
third party, if such third party obtains delivery
in good faith and without notice of previous
sale, he gets a good title.

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 Sale by buyer in possession after Sale
• Sec 30(2) provides that where the buyer
having brought or having agreed to buy
goods, obtain with the consent of the seller
possession of the goods or of documents of
title to the goods and sells them to a bonafide
transferee, it will be a good sale.
• This exception will not apply, if , at the time of
the sale the buyer was not in possession of
the goods.

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 Sale by an unpaid seller
• Where an unpaid seller who has a right of lien
or stoppage in transit resells the goods, the
buyer acquires a good title as against the
original owner. Thus a buyer at a resale
acquires a better title.

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 Other Exceptions
• 1. Finder of Goods
a)When the thing is in danger of perishing or of
loosing greater part of the value, or

a)When the lawful charges of the finder, in

respect of the thing found, amounts to two
thirds of its value

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 Section 176 of Contract Act

• 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 than he himself has.

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 Court officers and liquidators
• In some cases, a special power of sale is given
to officers of court, liquidators of companies,
receivers of insolvent’s estate, custom officers
for duties remaining unpaid etc.
• All these persons are not owners, yet they sell
properties of others , and convey a better title
to the buyers than they themselves possess.

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 Thank You

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