PRINCIPLE: The transferor of goods cannot pass a better title than what he himself possesses. FACTS: ‘X’ sells a stolen bike to ‘Y’. ‘Y’ buys it in good faith. As regards the title to bike, which of the following derivations is CORRECT? (Answer the question after reading the following paragraph.)

Directions:. Each question consists of legal propositions/ principles (hereinafter referred to as ‘principle’) and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true for the purposes of this section. In other words, in answering the following questions, you must not rely on any principles except the principles that are given herein below for every question. Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability even if the ‘most reasonable conclusion’ arrived at may be unacceptable for any other reason. It is not the object of this section to test your knowledge of law.

Option A: The real owner cannot get back the bike from ‘Y’

Option B: Y’ will get no title, as transferor’s (X’s) title was defective

Option C: Y’ will get good title, as he is a bona fide buyer

Option D: Y’ will get good title, as has not committed any wrong (stolen the bike)

Correct Answer

Option: b

Explanation

According to section, 21(1) of the Sale of Goods Act, the transferor of goods cannot pass a better title than he himself possesses. The rule represents the common law’s traditional favour of the preservation of property rights.

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