Question

No person can transfer a better title than he himself possesses. Which of the following is an exception to the general principle stated above ?

• A. Transfer by ostensible owner
• B. Transfer by manager in possession of property
• C. Transfer by Licensee in possession of property
• D. Transfer by a professed agent

Hint:

Section 41 is based on the equitable principle of estoppel.
If the real owner allows someone else to appear as the owner to the world, they cannot later deny that person's authority to transfer the property to an innocent third party.

Answer 1

The Correct Option is A

Step 1: Understanding the Question:
The question refers to the legal maxim "Nemo dat quod non habet" (no one can transfer what they do not own) and asks for a recognized statutory exception under the Transfer of Property Act, 1882.

Step 2: Detailed Explanation:

• The Rule - Nemo Dat Quod Non Habet: This general rule of property law dictates that a transferor cannot pass a better title to a transferee than what they themselves hold.

• Exception - Section 41 of the Transfer of Property Act, 1882: Section 41 provides a significant exception to this rule under the doctrine of "Transfer by Ostensible Owner".

• Conditions for Section 41:
1. The transferor must be the ostensible owner of the property.
2. They must hold such ostensible ownership with the consent (express or implied) of the real owner.
3. The transfer must be for consideration.
4. The transferee must act in good faith and take reasonable care to ascertain that the transferor has power to make the transfer.

• If these conditions are met, the transfer cannot be avoided by the real owner, and the transferee gets a valid title, despite the transferor not being the real owner.

Step 3: Final Answer:
The transfer by an ostensible owner (Option A) is a well-established exception to the general rule.