Gomer paid the seller of a car with a worthless cheque. He then sold the car to an innocent person who paid him good consideration. Gomer took the money and left the country. The original seller found out who had the car and wanted it back. Who is entitled to the car if the court holds that the contract between the original seller and Gomer is voidable?
A) Original seller
B) Gomer
C) Innocent purchaser
D) The innocent purchaser, but he must pay damages to the original seller
E) The original seller, but he must pay compensation to the innocent party

Question

Quizplus · Accepted Answer

In cases where a contract is voidable and the goods have been passed on to an innocent third party who has paid consideration (meaning they have bought the goods without knowing the initial contract was voidable), the innocent third party generally obtains good title to the goods. This is because the law aims to protect innocent purchasers who act in good faith.

Gomer Paid the Seller of a Car with a Worthless