Sale of Goods Act Section 29 — Sale by person in possession under voidable contract

CHAPTER III EFFECTS OF THE CONTRACT — Transfer of title

Commercial / Corporate

Summary

When the seller got the goods through a contract that could be cancelled under section 19 or section 19A of the Indian Contract Act, 1872, but that contract had not yet been cancelled at the time of the sale, the buyer still gets a good title to the goods. This applies only if the buyer purchases them in good faith and without knowing about the seller’s defect in title.

Official Text

When the seller of goods has obtained possession thereof under a contract voidable under section 19 or section 19A of the Indian Contract Act, 1872 (9 of 1872), but the contract has not been rescinded at the time of the sale, the buyer acquires a good title to the goods, provided he buys them in good faith and without notice of the seller’s defect of title.