"NO ONE CAN TRANSFER BETTER TITLE THAN HIMSELF"

Transfer of Property Act | Sale of Goods Act 1930 | "Nemo dat quod non habet" | No one can transfer a better title 

"NO ONE CAN TRANSFER BETTER TITLE THAN HIMSELF"

     The term  "Nemo dat quod non habet" refers to No one can transfer a better title in property than he himself has. It means Sales without title is not possible.  Sale of goods act describes rules regarding transfer of property and ownership.  Sometimes goods are transferred by none owner.  The general rule is no one can pass better title than himself.

Transfer of Ownership or Title (Sec 27 – 30):

Where goods are sold by a person who is not the owner thereof and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title than the seller had (Sec 27). As a general rule, no one can sell the goods and give a good title thereof unless he is the owner thereof. This general rule is expressed by the maxim: “Nemo dat quod non habet” which means “no one can give that which he possess not”. The seller cannot give to the buyer of the goods a better title to the goods than he himself has.

Example:

Mr. X sells goods to Mr.Y acquired by theft, where Mr. Z is the real owner of the goods. He later finds goods in possession of Mr. Y. Now Mr. Y has no title to the goods as Mr. X was not the owner and had no title to sell the goods. Therefore, Mr. Y  will have to return the goods to Mr. Z who is the real owner.

In the following instances the buyer does not obtain a better title:

1) Person who has bought the goods under hire purchase agreement sells them;

2) In an auction sale if stolen goods are sold, neither the auctioneer nor the buyer has knowledge that the goods are stolen.

Exception to the rule  No one can transfer a better title in property than he himself has ("Nemo dat quod non habet")         

 This rule protects the owner. However this rule has certain exception.

(I)        ESTOPPEL :- In case of estoppel the title of goods is transferred even without ownership.

(II)       SALE BY MERCHANTILE AGENT :- An agent can paas the title or transfer the goods even though he is not true owner.

(III)     SALE BY ONE OF THE JOINT OWNER :- In case of joint ownership if the goods which cannot be separated, may be transferred by one of the joint owner.

(IV)     SALE UNDER AVOIDABLE CONTRACT :- Under section-29 A person who obtains the possession of any goods under a voidable contract, and before the contract has been cancelled, sale this goods, ownership is transferred with a good title.

(V)       SALE BY SELLER IN POSSESSION AFTER SALE :- The buyer after purchasing the goods may leave them with the seller, if the seller sells these goods to someone other, the title of goods is transferred.  The later buyer becomes as obtains a good title.

(VI)     SALE BY AN UNPAID SELLER :- Under [Section – 54(3)]  Where an unpaid seller who has exercised his right of lien or stoppage in transit re- sells the goods, the buyer acquires a good title thereto as against the original buyer, notwithstanding that no notice of the re- sale has been given to the original buyer.

(VII)    SALE BY A FINDER OF GOODS: When thing which is commonly the subject of sale is lost, if the owner cannot with reasonable diligence be found, or if he refuses upon demand, to pay the lawful charges of the finder, the finder may sell it -
(1) when the thing is in danger of perishing or of losing the greater part of its value, or
(2) when the lawful charges of the finder, in respect of the thing found, amount to two-thirds of its value.
(VIII)  SALE BY THE OFFICIAL RECIEVER :  In the event of insolvency of either the seller or the buyer, the question whether the goods can be taken over by the Official Receiver or Assignee, will depend on whether the property in goods is with the party who has become insolvent.