Cora, an artist, entrusts her paintings with Kasper, the owner of an art gallery. Kasper sells Cora's paintings to Gianni. What kind of title does Gianni have?
A) Good title, even though Kasper had no title at all.
B) Good title, but only because Cora and Kasper had good title.
C) Voidable title, because Kasper had no title at all.
D) Voidable title, but only because the sale is contingent upon Cora's approval.
E) Good title, but only if Cora approves of the sale.

Question

Quizplus · Accepted Answer

Gianni has good title because, under the principle of entrustment found in commercial law, when an owner entrusts their goods to a merchant who deals in goods of that kind, the merchant has the authority to transfer all rights of the entruster to a buyer in the ordinary course of business. This means Gianni, as the buyer from Kasper (the merchant to whom Cora entrusted her paintings), would receive good title to the paintings, even though Kasper did not own them.

Cora, an Artist, Entrusts Her Paintings with Kasper, the Owner