Multiple choice

In the agreement to sell in case of resale, the buyer who takes the goods for consideration and without notice of the prior agreement gets a good title.

  1. True

  2. False

  3. Partly true

  4. Cannot say

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In an agreement to sell (where title passes later), if the seller resells to a bona fide buyer for consideration without notice of the prior agreement, that buyer gets good title. This is because the original buyer never acquired title, so the seller can still pass valid title to a subsequent bona fide purchaser.