Scribd
Upload
227 views1 page

Sales of Goods Act

The document summarizes the key provisions of the Sale of Goods Act 1957 regarding when a buyer can obtain good title to goods even when the seller does not have the right to sell the goods. There are several exceptions under the Act: 1) Estoppel - If the true owner allowed the seller to represent themselves as the owner to the buyer, the true owner is estopped from denying the seller's authority to sell. 2) Sale by a joint owner - If one joint owner has sole possession of the goods and sells them in good faith to a buyer who is unaware the seller lacked consent, the buyer obtains good title. 3) Sale by a mercantile agent - A buyer in good

Uploaded by

Serena James
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
227 views1 page

Sales of Goods Act

The document summarizes the key provisions of the Sale of Goods Act 1957 regarding when a buyer can obtain good title to goods even when the seller does not have the right to sell the goods. There are several exceptions under the Act: 1) Estoppel - If the true owner allowed the seller to represent themselves as the owner to the buyer, the true owner is estopped from denying the seller's authority to sell. 2) Sale by a joint owner - If one joint owner has sole possession of the goods and sells them in good faith to a buyer who is unaware the seller lacked consent, the buyer obtains good title. 3) Sale by a mercantile agent - A buyer in good

Uploaded by

Serena James
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

SALES OF GOODS ACT 1957

NEMO DAT QUOD NAN


HABET
"No one gives what they does not have"
General rule:
When a seller who sells goods which belongs to someone else, it will
result in the buyer in not getting a good title of that particular goods

EXCEPTIONS

There are certain instances where the buyer will retain a


good title despite the seller having no authority to sell;

Estoppel per Section 27(1) of SOGA 1957:


The owner made representations that the seller is entitled to sell the goods
In Eastern Distributors v Goldring (1967) 2 QB, the Court held that the allowance of
the true owner for the seller to represent himself as the owner to the buyer has
estopped the true owner from denying the seller's authority to sell.
In Syarikat Batu Sinar v UMBC Finance [1990] 2 CLJ 691, UMBC was estopped
from denying the seller's authority to sell.
Hence, buyer obtains a good title.
Sale by One of the Joint Owners per
Section 28 of SOGA 1957:

Sale by Mercantile Agent per the If one of the joint owners, provided
Proviso of Section 27 of SOGA that he has sole possession to the
1957: goods, sells it to the buyer
The buyer must have acted in good
Mercantile Agent is an agent faith and received no notification that
purposed to sell goods that are in the seller has not received consent
line with their course of business from the other co-owners.
dealings.
Only owner's consent to possess
Sale Under a Voidable Title per Section
the goods must be given per
29 of SOGA 1957:
Pearson v Rose & Young Ltd (1950)
2 Ch. D. 1027.
Seller obtained title from a voidable
The goods sold must be within the
contract previously; true owner's
business purview of the mercantile
consent was gathered through fraud or
agent, as diamonds to a diamond coercion. Seller then sells to buyer.
merchant in the case of Title is a good title only when the true
Oppenheimer v owner has yet to rescind the contract
Attenborough [1908] 1 K.B. 221 with seller at the time of purchase and
(CA). that the buyer bought it without notice
The buyer bought the goods in good that the seller procured the goods under
faith as no notice on the seller's lack such types of transaction.
of authority was given to him. In Car and Universal Finance Co Ltd v
Seller must come into possession of Caldwell [1965] 1 QB 525, intention or
the goods as mercantile agent, not taking the necessary steps to rescind
in other capacities as provided for in without actually communicating it to the
Budberg v Jerwood (1934) 51 TLR other party is sufficent.
99.

Sale by a Seller in Possession After Sale per Section 30(1) of SOGA


1957:

A buyer can still retain a good title in the instance where the seller actually
sold the goods but still maintains possession of it, and then ended up
selling it to the buyer.
Here, it needs to be proven that the seller has possession or document
title of the goods despite it already being sold to another person.
Goods must then be delivered or transferred to the new buyer.
The new buyer obtained the goods either through sale, pledge or
dispositions.
He does so without notice that the goods were already sold to another
person.
Sale by a Buyer in Possession per Section 30(2) of SOGA 1957:

A buyer obtains the goods from the true owner-seller which proceeds to
sell it to a subsequent buyer
The subsequent buyer can obtain a good title to the goods even though
the first buyer obtained a defective title to the goods.
However, the first buyer must be in possession of the goods or the
document of title to the goods as consented by the true owner when
transacting with the subsequent buyer.
First buyer then must have delivered or transferred the title to the new
buyer either through a sale, pledge or dispositions made between them.
The subsequent buyer does not know of the previous transaction, as laid
down in the case of Newtons of Wembley Ltd v Williams [1965] 1 QB
560.

You might also like