You sell your used car to a stranger. He gives you a cheque he knows is bad. By the time you find that out, he has sold the car to a third party. The third party paid a fair price and did not know that the vendor was a fraudsman. What is the situation now as between you and the third party?
A) You can get the car returned. The fraudsman could not give good title, because he didn't have it.
B) You are out of luck. Title has passed to the innocent third party.
C) You can get the car returned. You and the third party are both innocent victims, so title reverts to the last party to have good title, which is you.
D) The third party may keep the car, but will have to pay you damages.
E) You can get the car returned, but you will have to pay the third party damages.
Correct Answer:
Verified
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