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Under Section 30(2), a buyer who, with the seller's consent, obtains possession before property passes and then sells to a good-faith third party gives that party good title; but this does NOT cover a person holding under:
AA contract of sale by sample
BA sale on approval
CA hire-purchase agreement giving only an option to buy
DA conditional sale already paid for
Answer & Solution
Correct answer: C. A hire-purchase agreement giving only an option to buy
Section 30(2) protects a good-faith transferee from a buyer in possession (Lee v. Butler), but a hire-purchaser with a mere option to buy is not a 'buyer' and cannot pass good title.
Related questions
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