Passing of Property, *Nemo Dat* & the Unpaid Seller — KSLU Contract 2 Notes

Passing of Property, Nemo Dat & the Unpaid Seller

Property passes when the parties intend it to (S.19). For specific goods in a deliverable state, property passes when the contract is made (S.20); for unascertained or future goods, on ascertainment and unconditional appropriation (S.18, S.23). The general rule nemo dat quod non habet (S.27) — no one can transfer a better title than he has — protects the true owner, but yields to exceptions that protect an innocent buyer.

flowchart TD
    A["NEMO DAT QUOD NON HABET (S.27)<br/>no one gives a better title than he has"]:::root
    A --> B["Sale by mercantile agent (S.27 proviso)"]:::leaf
    A --> C["Estoppel — owner's conduct (S.27)"]:::leaf
    A --> D["Sale by one of joint owners (S.28)"]:::leaf
    A --> E["Sale under a voidable contract (S.29)"]:::leaf
    A --> F["Seller / buyer in possession after sale (S.30)"]:::leaf

    classDef root fill:#FFF8DC,stroke:#333,color:#000;
    classDef leaf fill:#E6F3FF,stroke:#1E3A8A,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

An unpaid seller (S.45) — one who has not been paid the whole price — has rights against the goods even after property has passed: a lien to retain possession (S.47), stoppage in transit if the buyer is insolvent (S.50), and resale (S.54); and rights against the buyer personally — a suit for the price (S.55) or for damages for non-acceptance (S.56).