Tuesday, July 19, 2011

Sale under a voidable title

Where the seller of goods has obtain possession thereof under a contract voidable under Section 19 of the Contract Act 1950 , but the contract has not been rescinded at the time of the sale , the buyer acquires a good title to the goods provided he buy them in good faith and without notice of the seller's defect of title .


Example :
When X obtain good from Y by Coercion and sells them to Z who buy them innocently . At the time Z buys the goods ,Y has not rescinded the contract made with X . Here , Z obtains good title to the goods . 

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