Exceptions to the Non Owners
Following are certain important Exceptions of general rule that is Maxim 'Nemo Dat Qui Non Habet'
The exception are more important than the rule itself, because these are cases where in the law gives protection to the bonafide transferee even though the transferor may not be entitled to transfer such goods. Thus the rule read with exceptions given in section 27 to Section 30 is the golden mean between the theoretical, legal aspect and practical aspect to the problem.
Title by Estoppel: The word 'Estoppel' is derived from the word 'Estopped'. As per Section 1115,116,117 of the Indian Evidence Act, deals with the provision of estoppel. According to Section 115 where the owner by his conduct or by an act or omission, leads the buyer to believe that the seller has the authority to sell and induces the buyer to buy the goods, he shall be estopped from denying the fact of want of authority of the seller. The buyer in such a case gets a better title than that of the seller.
Transfer or Sale by mercantile agent: A mercantile agent is constituted and appointed on behalf of the principal, who is in possession of the goods and who is conferred with the right to sale the goods in his possession by his principal. If such agent sales the goods to the bonafide buyer then the true owner or the principal cannot challenge the transfer.
Sale or Transfer by co-owner or joint owner: Co-owner are the joint owners of a property. They all have right to transfer the property, provided all other owners give their consent for the same. If any of co-owners transfer the property to a purchaser, then transferee will not get good title. But under certain circumstances if a co-owner acts as a sole owner and an outsider or purchaser purchased property from such owner who is in possession of the property, then protection that one of the owners has the right to sale the property.
Auction sale: Auction sale is a sale in an open market and in presence of all public. Generally, the public at large knows about such a sale. In such transaction the buyers are protected. The auction sale may be conducted by the order of the Court or by operation of law. The auctioneer though not owner of the goods to be sold by auction, the highest bidder becomes the owner of the goods.
Conclusion: As a general rule when contract of sale resulting into a sale, it causes transfer of title from seller to buyer. However, such a title can b transferred not in all cases of contract of sale but only in respect of seller having rights to the goods sold.
