Sunday, July 17, 2011

Sale under a voidable title ( Section 29 )

Where the seller of goods has obtained possession thereof under a contract voidable under section 19 of the Contract Act 1950 , but the contract has not been rescinded at the time of the sale , the buyer acquires a good title to the goods provided he buys them in good faith and wihout notice of the seller's defect of title .

Example :

When x obtains goods from Y by coercion and sells them to Z who buys them innocently . At the time Z buys the goods , Y has not rescinded the contract made with X . Here , Z obtains good titles to the goods .

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