Chapter 5 : Sale of Goods
5.5.5 Sale by a Seller in Possession after Sale
Under Section 30(1) SOGA 1957, if a seller resells to a second buyer the goods sold by him previously to the first buyer, the second buyer will obtain good title to the goods if he has received the goods in good faith and without notice of the previous sale. The first buyer will lose the title but he/she can take legal action against the seller who would be liable to him. E.g.: Azira Furniture sold a set of sofa to Sasha and promises to deliver the sofa the next day. Before the delivery, Azira Furniture sold the same set of sofa to Vishanti, who buys the sofa in good faith and without the notice of the prior sale. Vishanti gets a good title to the sofa.
5.5.6 Sale by a Buyer in Possession
Under Section 30(2) SOGA 1957, if a buyer, having bought or agreed to buy goods, obtains possession of the goods or the documents of title with the consent of the seller, he can pass a good title to a subsequent buyer acting in good faith, even if under the first transaction, he has not obtained a good title.
Newtons of Wimbley Ltd v Williams [1965] Facts: The plaintiffs sold a car to A who paid by cheque. Although he was given possession, it was agreed that the property would not pass until the cheque was honoured. The cheque was dishonoured but A had resold the car to B who bought it without knowledge of the position. B resold it to defendant. The plaintiffs tried to recover the car from him.
Held: A, the original buyer, was in possession with the consent of the owner. Hence, he could pass a good title to B, who in turn transferred it the defendant. The defendant was, therefore, entitled to keep the car.
5.6
REMEDIES FOR BREACH OF CONTRACT
Chapters V and VI of the Sale of Goods Act 1957 deal with the following situation: o Rights to sue unpaid seller against the goods; o Rights to sue for breach of contract; o Rights of the buyer to sue for damages for non-delivery; o Rights of the buyer to commence an action for specific performance; o Remedies available to the buyer for breach of warranty; and o Buyer’s action in tort.
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