Question

To enable the Buyer to get good title, in case of sale by Mercantile Agent, the _______________, that the Seller/Agent has no authority to sell.

• A. buyer has notice at the time of contract
• B. buyer has no notice at the time of contract
• C. true owner has notice at the time of contract
• D. true owner has no notice at the time of contract

Answer 1

The correct option is B buyer has no notice at the time of contract

To enable the Buyer to get good title, in case of sale by Mercantile Agent, the buyer has no notice at the time of contract, that the seller or agent has no authority to sell. Sale by Mercantile agent is not valid when the buyer knows that the agent has no authority to sell. Merchantile agent refers to that event when the seller sells goods wihout any authority.