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Commerce · Q107

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 107

Q107

If an owner entrusts the possession of his goods to a merchant who deals in goods of that kind, the merchant has the power to transfer all rights (including title) to the goods to a buyer in the ordinary course of business. The real owner cannot reclaim the goods from this buyer. Which type of rule is this?

A.
Entrustment
Answer
B.
Good faith purchaser
C.
Holder in due course
D.
Bona fide purchaser

Answer: Option A

Solution

Answer: Option A
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