What happens when a buyer with a voidable title sells the goods to a third-party purchaser who makes a good-faith purchase for value?
A) The purchaser gets good title.
B) The purchaser gets voidable title.
C) The purchaser gets void title.
D) The purchaser gets reclaimable title.
E) The purchaser gets good-faith title.

Question

Quizplus · Accepted Answer

The purchaser gets good title because, under the principle of nemo dat quod non habet, a seller cannot transfer better title than they have, except in the case of a good-faith purchase for value by a third party, which is an exception to the rule. This means the third-party purchaser, who buys the goods in good faith without knowledge of the seller's defective title, obtains good title to the goods.

What Happens When a Buyer with a Voidable Title Sells