When consigned goods are sold by a factor:

Question

Quizplus · Accepted Answer

When consigned goods are sold by a factor, the sale passes the title of the owner to the buyer. This means that the buyer becomes the new owner of the goods and the consignor no longer has any claim to them. This is based on the principle of "nemo dat quod non habet," which means "no one gives what he does not have." Therefore, the factor can only transfer title to the buyer if they have the legal right to do so, which they acquire through the consignment agreement with the consignor.

When Consigned Goods Are Sold by a Factor