When a mercantile agent sells goods without the authority of the owner the buyer will become the new legal owner if:

Question

Quizplus · Accepted Answer

According to the Sale of Goods Act, a mercantile agent who sells goods without proper authority from the owner can transfer ownership to the buyer if three conditions are met: (A) the agent had possession of the goods with the consent of the owner, (B) the buyer acted in good faith, and (C) the buyer did not know that the agent lacked true authority.

Therefore, the best choice is E, as it includes the two conditions that must be met for a buyer to become the new legal owner of the goods in this situation.

When a Mercantile Agent Sells Goods Without the Authority of the Owner