Like Legal Law

Transfer of Title – Meaning, Rule and Exceptions Meaning of Transfer of Title In a contract of sale of goods, transfer of title means the transfer of ownership rights from the seller to the buyer. The person who owns the goods has the title to them, and when that ownership is lawfully passed to another through a valid sale, it is called the transfer of title . In other words, transfer of title refers to the legal transfer of property rights from the seller to the buyer. Sections 27 to 30 of the Sale of Goods Act, 1930 deal with the rules relating to transfer of title. General Rule – Nemo Dat Quod Non Habet The basic principle governing transfer of title is the Latin maxim “Nemo Dat Quod Non Habet” , which means “no one can give what he does not have.” According to this rule: A seller cannot transfer a better title than he himself possesses. If the seller is not the owner, then the buyer does not acquire ownership, even if he buys in good faith. Example: If A ste...