Nemo dat quod non habet
Latin: No one gives what he does not have
Also called: Nemo dat rule, No one can transfer a better title than he has
A person cannot transfer a better title than he himself has. In Indian law it is embodied in Section 27 of the Sale of Goods Act, 1930, subject to listed exceptions protecting good faith buyers.
Explained
The maxim states the basic rule of transfer of title: a seller who is not the owner, and who does not sell with the owner's authority or consent, passes no better title than he has. Section 27 of the Sale of Goods Act, 1930 enacts it: where goods are sold by a person who is not the owner and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had. So a buyer from a thief gets no title, however honest he is, and the true owner can recover the goods.
The rule protects ownership, but the Act makes exceptions to protect honest buyers in commerce. Each exception, except estoppel, requires the buyer to act in good faith without notice of the seller's defect. They are: estoppel, where the owner's conduct precludes him from denying the seller's authority (Section 27); sale by a mercantile agent in possession of the goods or documents of title with the owner's consent, acting in the ordinary course of business (proviso to Section 27); sale by one of several joint owners in sole possession by permission of the co-owners (Section 28); sale by a person in possession under a voidable contract not yet rescinded (Section 29); and sale by a seller or buyer in possession after sale (Section 30).
The same exceptions run through other laws. Sections 178 and 178A of the Contract Act apply them to pledges by mercantile agents and by persons in possession under voidable contracts. For immovable property, Section 41 of the Transfer of Property Act protects a transferee who takes from an ostensible owner with consent of the persons interested, after reasonable care and in good faith. A holder in due course of a negotiable instrument may also take a title free of defects in prior parties' titles, which is a major departure from the rule.
Examiners usually test whether a buyer from a thief acquires title, and which exception applies on given facts, especially the conditions for a mercantile agent's sale.
What the law says
Subject to the provisions of this Act and of any other law for the time being in force, where goods are sold by a person who is not the owner thereof and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller’s authority to sell:
Provided that, where a mercantile agent is, with the consent of the owner, in possession of the goods or of a document of title to the goods, any sale made by him, when acting in the ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorised by the owner of the goods to make the same; provided that the buyer acts in good faith and has not at the time of the contract of sale notice that the seller has not authority to sell.
Enacts the rule and the estoppel and mercantile agent exceptions
If one of several joint owners of goods has the sole possession of them by permission of the co-owners, the property in the goods is transferred to any person who buys them of such joint owner in good faith and has not at the time of the contract of sale notice that the seller has not authority to sell.
Exception for sale by a joint owner in sole possession
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.
Exception for sale under an unrescinded voidable contract
(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.
Exception for seller or buyer in possession after sale
[Where a mercantile agent is, with the consent of the owner, in possession of goods or the document of title to goods, any pledge made by him, when acting in the ordinary course of business of a mercantile agent, shall be as valid as if he were expressly authorised by the owner of the goods to make the same; provided that the pawnee acts in good faith and has not at the time of the pledge notice that the pawnor has not authority to pledge.
Explanation.—In this section, the expressions “mercantile agent” and “documents of title” shall have the meanings assigned to them in the Indian Sale of Goods Act, 1930 (3 of 1930).
Pledge by a mercantile agent
Where, with the consent, express or implied, of the persons interested in immoveable property, a person is the ostensible owner of such property and transfers the same for consideration, the transfer shall not be violable on the ground that the transferor was not authorised to make it:
Provided that the transferee, after taking reasonable care to ascertain that the transferor had power to make the transfer, has acted in good faith.
Transfer by an ostensible owner of immovable property
Example
For example, T steals O's car and sells it to B, who pays full price in good faith. B gets no better title than T had, so O can recover the car from B.
For the exam
- Embodied in Section 27 of the Sale of Goods Act, 1930.
- A buyer from a thief acquires no title, even in good faith.
- Exceptions: estoppel, mercantile agent, joint owner, voidable contract, seller or buyer in possession.
- Mercantile agent exception needs owner's consent to possession and sale in ordinary course of business.
- Section 41 TPA (ostensible owner) is the immovable property counterpart of these exceptions.
3 questions in the Law Maker question bank use this maxim. Practise Partnership and Sale of Goods Acts questions
Related terms
- Mercantile agentUnder Section 2(9) of the Sale of Goods Act, an agent having, in the customary course of business, authority to sell goods, consign them for sale, buy goods, or raise money on their security.
- Voidable contractAn agreement enforceable by law at the option of one or more of the parties but not at the option of the other or others. Section 2(i) of the Indian Contract Act, 1872.
- Holder in due courseOne who for consideration becomes possessor of a bearer instrument, or payee or indorsee of an order instrument, before maturity and without cause to believe the transferor's title defective. Section 9, NI Act.
- BuyerA person who buys or agrees to buy goods. Section 2(1) of the Sale of Goods Act, 1930; the buyer of immovable property has rights and duties under Section 55 of the TPA.
- SellerA person who sells or agrees to sell goods. Section 2(13) of the Sale of Goods Act, 1930. For the unpaid seller's rights, 'seller' also includes a person in the position of a seller (Section 45(2)).
- Caveat emptorLet the buyer beware. A buyer must satisfy himself about the quality and fitness of what he buys, since the seller gives no implied assurance except as the law provides.
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.