Transfer of Property in Goods ( Transfer of Title or Ownership )

• Section 26 of SGA provides that unless otherwise agreed , goods will remain at the seller's risk until the title or ownership of the goods is transferred to the buyer . When the title is transferred to the buyer , the goods are at the buyer's risk irrespective of whether delivery of the goods has been made .
• Section 27 of SGA provides that unless a buyer has the title , he cannot transfer title to another person whether by way of sale or a gift . 
• If goods are purchased from a person who is not the owner and who does not sell them under the owner;s authority , the buyer does not acquire a title even if he has paid value in good faith , e.g. goods are stolen and subsequently sold , the right of the original owner is retained . 
• Section 27 sets out the English rule 'nemo dat quod non habet' ( No one can give a better title than he has himself ). 
• The following are exceptions to the nemo dat quod non habet rule : 

(i) Estoppel ( section 27 )
When ' the owner of the goods is by his conduct precluded from denying the seller's authority to sell . ' ( Section 27 ) Example : Y tells Z in front of X that Y wants to sell X's books to Z , and X nods his head and keeps quiet . If Y sells the books to Z , X cannot complain that Y has sold his books without his authority .
(ii) Sale by mercantile agent ( Section 27 )

When the seller is , with the consent of the owner , in possession of the goods or a document of title to the goods .

(iii) Sale by one of joint owners ( Section 28 )
When one of the several joint oweners of goods has the sole possession of them by permission of the co-owners .