Question:

Principle: The transferor of goods cannot pass a better title than what he himself possesses. Facts: 'X' sells a stolen bike to 'Y', and 'Y' buys it in good faith.

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A bona fide purchaser of stolen goods does not acquire ownership; the true owner's rights prevail.
Updated On: Aug 11, 2025
  • The real owner cannot get back the bike from 'Y'
  • 'Y' will get no title, as transferor's title was defective
  • 'Y' will get good title, as he is a bona fide buyer
  • 'Y' will get good title, as he has not committed any wrong
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The Correct Option is B

Solution and Explanation

The legal maxim \textit{nemo dat quod non habet} means "no one can give what they do not have." Since 'X' had no ownership rights over the stolen bike, he could not transfer ownership to 'Y', even if 'Y' purchased it in good faith. The real owner retains the right to recover the bike.
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