Question

Explain any THREE (3) exceptions to the nemo dat rule under the Sale of Goods Act 1957. ( 10 mark)

Answer 1

'Nemo dat rule' signifies one can transfer only what one has.

The sections related to this rule under Sale of Goods Act 1957 are in section 27 - 30.

Following are the exceptions to the 'Nemo dat rule' :

i) Estoppel : under this exception, a title can be transferred by the third party to the buyer (second party) , if and only if the seller who is the first party has appointed that third person for holding the seller's property for any reason. If in the presence of the seller, the third party sells goods to buyer with concent of seller, then the title is transferred to the buyer.

This is an exception to the rule that only the seller can transfer the title to the buyer.

2) Sale made by the Mercantile Agent : Of the goods or documents treated to goods owned by a person, is under the possession of an mercantile agent, then taking concent of the one who is the real owner, the agent can sell the goods, and this will be considered valid.

3) Sale by one of the joint owners : It may be possible that there are more than one owner of a goods. Then one owner who is having the possession over that goods can sell those goods to the buyer without any type of prior consent of the other Co owner of that particular goods. This transfer of title will be valid.

These were three exceptions to the rule 'Nemo dat rule of Sales of Goods Act, 1957.