Scenario
Sam bought a car from Kiki for RM15,000.00 and used it for 3 months, Sam later discovered that the car was a stolen car and the car having been claimed by the original owner, Ahmad.
Sam refused to return the car to Ahmad. Sam remembered reading from the newspaper that a bona fide purchaser shall be entitled to retain goods purchased in good faith and paid with valid consideration.
Mythbusted.
Pursuant to Section 27(1) of the Sale of Goods Act 1957, “…the buyer acquires no better title to the goods than the seller had…” Kiki, being the seller, did not have the right to sell the car as she did not obtain good title/ownership from the thief. Ownership of the car shall at all time remained with Ahmad, and not transfer to the thief, Kiki or Sam.
Sam shall return the car to Ahmad and in turn claim against Kiki for refund of the purchase price of RM15,000.00 due to total failure of consideration.
So, how much did you know about this Legal Myth?
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