Sections 28-29 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 28 and 29 are two more exceptions to the plain rule in section 27 that a buyer gets no better title than the seller had. Section 28 protects a buyer in good faith and without notice who buys from one of several joint owners who has sole possession of the goods by permission of the co-owners. Section 29 protects a buyer in good faith and without notice of the seller's defect of title where the seller got possession under a contract voidable under section 19 or 19A of the Indian Contract Act, 1872 and the contract had not been rescinded at the time of the sale.
Section 28: if one of several joint owners has sole possession of the goods by permission of the co-owners, the property in the goods is transferred to a person who buys them from him in good faith and without notice that the seller has no authority to sell. Section 29: where the seller obtained possession under a contract voidable under section 19 or 19A of the Indian Contract Act, 1872 and the contract has not been rescinded at the time of the sale, the buyer acquires a good title, provided he buys in good faith and without notice of the seller's defect of title.
Reading note
This article follows the consolidated text of the Act consulted (latest amendment shown: Act 28 of 1993); later amendments should be checked in the official text. These sections follow section 27, which sets the general rule and the mercantile agent proviso. The two sections here share two requirements: the buyer must act in good faith, and must have no notice of the defect. Disputes over who has title to goods often arise when a seller turns out to have had a limited right; our legal dispute resolution service can help assess the position.
Section 28: sale by one of joint owners
"If one of several joint owners of goods has the sole possession of them by permission of the co-owners, the property in the goods is transferred to any person who buys them of such joint owner in good faith and has not at the time of the contract of sale notice that the seller has not authority to sell."
The conditions can be set out one by one:
- the goods have several joint owners;
- one of them has the sole possession of the goods;
- he has that possession by permission of the co-owners;
- a person buys the goods from that joint owner;
- the buyer acts in good faith; and
- the buyer has no notice, at the time of the contract of sale, that the seller has no authority to sell.
When all six are met, "the property in the goods is transferred" to the buyer.
Notice what the section does not say. It does not say what happens between the co-owners, and it does not say what the selling joint owner owes the others. The text is silent on those matters, and this article does not supply a rule. For the Contract Act on bailors who are joint owners, see Sections 163-167 of the Indian Contract Act, 1872.
Example (the writer's own, not printed in the Act): Three brothers, Arun, Bipin and Chetan, jointly own a stock of timber. By their agreement the timber is kept at Arun's yard and Arun alone looks after it. A trader, Dubey Constructions, buys all of it from Arun, believing him to be the whole owner, and does not know that Arun had no authority to sell the brothers' shares. Section 28's conditions are met: joint owners, sole possession by permission, good faith, no notice. The property in the timber is transferred to Dubey Constructions.
Second example (also the writer's own): If Dubey Constructions had been told by Bipin the week before that Arun could not sell without all three brothers' signatures, the buyer would have notice, and section 28 would not protect it.
Section 29: seller in possession under a voidable contract
"When the seller of goods has obtained possession thereof under a contract voidable under section 19 or section 19A of the Indian Contract Act, 1872 (9 of 1872), but the contract has not been rescinded at the time of the sale, the buyer acquires a good title to the goods, provided he buys them in good faith and without notice of the seller's defect of title."
The structure is:
| Element | Text |
|---|---|
| The seller's position | he obtained possession of the goods under a contract voidable under section 19 or section 19A of the Indian Contract Act, 1872 |
| Status of that contract | not rescinded at the time of the sale |
| The buyer | buys in good faith and without notice of the seller's defect of title |
| Result | the buyer acquires a good title |
Section 19 of the Contract Act deals with agreements where consent is not valid, and section 19A with the power to set aside a contract induced by undue influence. To read those sections, see Section 19 of the Indian Contract Act, 1872: voidable agreements where consent is not valid and Section 19A of the Indian Contract Act, 1872. The Sale of Goods Act refers to them by number as printed; the reader should check the current law for the corresponding provisions, and this article names no other Act or section.
The key phrase is "has not been rescinded at the time of the sale". The timing is fixed at the moment of the sale to the buyer. If the original contract has been rescinded before that sale, the section's condition is not met. The text does not say how or by whom rescission must be made, nor how a buyer is to find out; it is silent on both.
Example (the writer's own): Pinto Jewellers sells a gold chain to Qureshi, but Qureshi obtained the chain by a false statement that induced Pinto's consent, so that Pinto may have the contract set aside under section 19 of the Contract Act. Before Pinto rescinds, Qureshi sells the chain to Reddy Gold in good faith, without any notice of the problem. Under section 29 Reddy Gold acquires a good title. If Pinto had already rescinded the contract with Qureshi before this sale, the section's condition would not be met.
Sections 27, 28 and 29 compared
| Point | Section 27 | Section 28 | Section 29 |
|---|---|---|---|
| Seller | non-owner without authority; or mercantile agent (proviso) | one of several joint owners in sole possession by permission of the co-owners | person who got possession under a contract voidable under section 19 or 19A of the Contract Act, not yet rescinded |
| Buyer's good faith | required in the proviso | required | required |
| Notice | none at the time of the contract (proviso) | none at the time of the contract | none of the seller's defect of title |
| Result | no better title (main rule); valid sale (proviso) | property transferred to the buyer | buyer acquires a good title |
Practical steps
- For buyers: ask whether the goods have co-owners, and on what terms the seller holds them. Ask how the seller acquired the goods. Written answers give evidence of good faith and lack of notice.
- For co-owners: if you let one co-owner hold sole possession of goods, say in writing what he may and may not sell, and tell the people he trades with.
- For persons induced by pressure or misrepresentation to deliver goods: if you wish to set the contract aside, act promptly and record the rescission; section 29 turns on whether it was rescinded at the time of the sale.
- For everyone: good faith and absence of notice are factual matters; keep the paperwork that shows them.
Section 30, on a seller or buyer who stays in possession after a sale, completes this group; it is covered in its own article.
Need help with a title problem on goods you bought or sold?
If you bought goods from a co-owner or from someone whose own contract is open to challenge, or you are the owner who finds them sold on, our legal dispute resolution team can look at the facts against sections 27 to 30 and advise on the next step.
Key takeaways
- Section 28 protects a good-faith buyer without notice who buys from one of several joint owners holding sole possession by permission of the co-owners.
- Section 29 protects a good-faith buyer without notice of the seller's defect of title where the seller's contract was voidable under section 19 or 19A of the Indian Contract Act, 1872 and not rescinded at the time of the sale.
- Both require good faith and absence of notice.
- The timing in section 29 is "at the time of the sale".
- The text is silent on the rights between co-owners and on how rescission is made.
Read next
- Section 27 of the Sale of Goods Act, 1930: sale by a person who is not the owner
- Section 30 of the Sale of Goods Act, 1930: seller or buyer in possession after sale
- Section 19 of the Indian Contract Act, 1872: voidable agreements where consent is not valid
- Section 19A of the Indian Contract Act, 1872: power to set aside contract induced by undue influence
Disclaimer: Based on the consolidated text of the Sale of Goods Act, 1930 consulted on 2 October 2026, whose latest amendment shown is Act 28 of 1993. It explains the words of the statute only; later amendments and the way courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.