Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Sale of goods - Effects of contract - Transfer of title

151: Sale under voidable title

You could also call this:

“Buying things from someone who might not be allowed to sell them”

If someone is selling goods but their right to sell those goods can be cancelled, this is called having a ‘voidable title’. If their right to sell hasn’t been cancelled yet when they sell the goods to you, and you buy the goods without knowing about any problems with the seller’s right to sell them, then you become the rightful owner of those goods. This only works if you buy the goods honestly and don’t know about any issues with the seller’s right to sell them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844347.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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Part 3 Sale of goods
Effects of contract: Transfer of title

151Sale under voidable title

  1. This section applies if—

  2. a seller of goods has a voidable title to the goods; but
    1. the seller’s title has not become void at the time of the sale.

      1. The buyer acquires a good title to the goods if the buyer buys the goods in good faith and without notice of the seller’s defect of title.

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