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Cpt law problem

Vibhor Nanda (CA student) (59 Points)

14 June 2012

Q. An agreement to share benefits of a public office ----a~>Void |---b~>voidable|----c~>void -- d..none --------------------------- A buys a T.V set from B. B agrees to deliver the set to A. After some time during the day, B sells the same to C at a higher price. Decide the title of good ------------- (A)-C gets a good title ----(B)-A gets a good title ----(C)-Nobody gets a goods title ----(D)-None of these

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7 Replies

Tejaswi Kasturi (student-cpt) (427 Points)
Replied 14 June 2012

1. void as illegal as opposed to public policy.

2.C gets good title exception to "Nemo dat quod non habet" section 30(1)

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Vibhor Nanda (CA student) (59 Points)
Replied 14 June 2012

Thanks alot! I Was confused due to wrong answers in Model test papers

Mayank Mall (CA-Final) (316 Points)
Replied 14 June 2012

1. It is Void as Tejaswi Said. 2. I dont get it....A And B had already done a contract, A holds the good title here, B did not sell the goods to him, Its he who has Violated the contract. The first contract is legal as the tv is to be sold to A, but the contract b/w B and C is void as the TV Set is already sold to A (its bought by A but the possession is yet to be claimed)......So I think option B....A gets the good title.

Tejaswi Kasturi (student-cpt) (427 Points)
Replied 14 June 2012

yeah That is what I would also think when first looking at the question. But the law has to protect the rights of the C who bought the T.v. on good faith from B without knowing that it is already sold. It is given in the book as an exception to the rule that you can't give what you don't have. This is mentioned as section 31. A's recourse is to either sue B as breach of contract and claim damages and rescind the contract to get the money back or to claim specific performance. i.e. to get a similar T.v. for the pre-agreed price

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Tejaswi Kasturi (student-cpt) (427 Points)
Replied 14 June 2012

https://indiankanoon.org/doc/904169/

Central Government Act

Section 30 in The Sale Of Goods Act, 1930

30. Seller or buyer in possession after sale.-

(1) Where a person, having sold goods, continues or is in possession of the goods or of the documents of title to the goods, the delivery or transfer by that person or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of the previous sale shall have the same effect as if the person making the delivery or transfer were expressly authorised by the owner of the goods to make the same.

(2) Where a person, having bought or agreed to buy goods, obtains, with the consent of the seller, possession of the goods or the documents of title to the goods, the delivery or transfer by that person or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of any lien or other right of the original seller in respect of the goods shall have effect as if such lien or right did not exist.

CHAPTER IV PERFORMANCE OF THE CONTRACT CHAPTER IV PERFORMANCE OF THE CONTRACT

the law gives good title to C