Question

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?

• A. The real owner cannot get back the bike from 'Y'
• B. 'Y' will get no title, as transferor's (X's) title was defective
• C. 'Y' will get good title, as he is a bona fide buyer
• D. 'Y' will get good title, as has not committed any wrong (stolen the bike)

Answer 1

The correct option is C 'Y' will get good title, as he is a bona fide buyer

According to section, $21\left(1\right)$ 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.
In this case, Y (buyer) will get a good title, as he is a bona fide buyer.