Question:
Legal Principle: An essential condition in a contract for sale of goods is that the seller has title over the goods sold.
Fact Situation: Ranjan pays \rupee 2000 and buys a watch from Mohit who runs a watch showroom and a repair shop. Jatin sees the watch with Ranjan and tells him that it is his watch and was only given to Mohit for repairs. If what Jatin says is true,
Which of the following statements is the most appropriate in relation to the legal principle stated above?
Legal Principle: An essential condition in a contract for sale of goods is that the seller has title over the goods sold.
Fact Situation: Ranjan pays \rupee 2000 and buys a watch from Mohit who runs a watch showroom and a repair shop. Jatin sees the watch with Ranjan and tells him that it is his watch and was only given to Mohit for repairs. If what Jatin says is true,
Which of the following statements is the most appropriate in relation to the legal principle stated above?
Fact Situation: Ranjan pays \rupee 2000 and buys a watch from Mohit who runs a watch showroom and a repair shop. Jatin sees the watch with Ranjan and tells him that it is his watch and was only given to Mohit for repairs. If what Jatin says is true,
Which of the following statements is the most appropriate in relation to the legal principle stated above?
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In sale of goods, always verify the seller’s ownership rights. Buying from someone without title may leave you without legal ownership, even if you pay in full.
Updated On: Aug 14, 2025
- Ranjan is now the owner of the watch since he paid \rupee 2000 for it.
- Ranjan is not the owner of the watch since Mohit did not have a title to it.
- Mohit must pay Jatin \rupee 2000 since he sold Jatin’s watch.
- Mohit is the owner of the watch since he sold it to Ranjan.
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The Correct Option is B
Solution and Explanation
Step 1: Understanding the legal principle
- In a valid sale of goods, the seller must have ownership (title) of the goods.
- If the seller does not have title, he cannot transfer ownership to the buyer — principle of “nemo dat quod non habet” (no one can give what they do not have).
Step 2: Applying to the facts
- Jatin claims the watch is his property and was only given to Mohit for repair.
- This means Mohit never had ownership rights over the watch.
Step 3: Effect on Ranjan’s purchase
- Since Mohit was not the owner, he could not transfer ownership to Ranjan.
- Ranjan only received possession, not legal ownership.
Step 4: Eliminating incorrect options
- Option (1) is wrong: Payment alone does not create ownership if the seller lacks title.
- Option (3) is incorrect as the question is about ownership, not compensation.
- Option (4) is wrong: Selling does not create ownership if the seller had no title.
Step 5: Conclusion
- Therefore, Ranjan is not the owner — correct choice is option (2).
\[ \boxed{\text{Ranjan is not the owner because Mohit had no title to the watch.}} \]
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