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CHAPTER III EFFECTS OF THE CONTRACT · Transfer of title

Section 30: Seller or buyer in possession after sale

The Sale of Goods Act, 1930

(1) Where a person, having sold goods, continues or is in possession of the goods or of the documents of title to the goods, the delivery or transfer by that person or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of the previous sale shall have the same effect as if the person making the delivery or transfer were expressly authorised by the owner of the goods to make the same.

(2) Where a person, having bought or agreed to buy goods, obtains, with the consent of the seller, possession of the goods or the documents of title to the goods, the delivery or transfer by that person or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof to any person receiving the same in good faith and without notice of any lien or other right of the original seller in respect of the goods shall have effect as if such lien or right did not exist.

Questions on this section

2 questions in 11 of our papers cite Section 30. Try these from the free papers:

  1. 1. A sells goods to B but continues in possession of them. A then pledges the same goods with C, who takes them in good faith and without notice of the earlier sale. Under Section 30(1) of the Sale of Goods Act, 1930, the pledge to C:

Practise questions on Partnership and Sale of Goods Acts