alleryStart learning →A mercantile agent with owner's consent sells. When is it valid?
AOnly if the owner ratifies it
BOnly if the buyer pays in cash
CIf the buyer acts in good faith
DNever without a power of attorney
Answer & Solution
Correct answer: C. If the buyer acts in good faith
The proviso to section 27 validates such a sale if the buyer acts in good faith and has no notice that the agent lacks authority.
Keep practising Sale of Goods — Transfer of Ownership and Delivery
Browse all Sale of Goods — Transfer of Ownership and Delivery questions for CA Foundation, or explore more Businesslaw topics.
Related questions
Buyer ignores ready delivery for a reasonable time. His liability?A buyer rightly refuses delivered goods. Unless agreed, what must he do?What makes a buyer deemed to have accepted delivered goods?Buyer acts against seller's ownership of delivered goods. Result?Buyer gets unexamined goods. Deemed acceptance comes when?Delivery is at the seller's risk at a distant place. Who bears transit deterioration?The seller gives no notice for sea insurance. Whose risk is the sea transit?Goods go by sea where insurance is usual. What must the seller do?