Correct option is D
The maxim "Nemo dat quod non habet" means "no one can transfer a better title than they possess." However, Sections 41 and 43 of the Transfer of Property Act, 1882, provide exceptions to this general rule. These Sections enable a transferor without full ownership rights in a property to transfer it validly under specific circumstances, giving the transferee good title.
Information Booster
Section 41: Transfer by Ostensible Owner
Section 41 of the Transfer of Property Act deals with "Transfer by Ostensible Owner." An ostensible owner is someone who appears to be the owner of a property but is not the actual owner. According to this Section, if the real owner of a property allows someone to appear as the owner and that person, with the real owner’s consent, transfers the property to a third party, the transfer is valid provided the third party takes the property in good faith and without knowledge of the true ownership.
Key points of Section 41:
· The real owner must have expressly or impliedly given consent for the ostensible owner to hold themselves out as the owner.
· The transferee must act in good faith and with due diligence.
· The transferee should not be aware of the actual ownership.
Thus, Section 41 forms an exception to the maxim because the transferee can obtain valid ownership despite the transferor not having real ownership.
Section 43: Doctrine of Feeding the Estoppel
Section 43 introduces the "Doctrine of Feeding the Estoppel by Grant." According to this Section, if a person fraudulently or erroneously represents that they have full ownership rights in a property and transfer that property, but later acquires the actual title, the ownership rights are automatically passed to the transferee. The transfer will be valid from the date of acquiring the title, provided the transferee acted in good faith and without knowledge of the transferor's lack of title at the time of transfer.
Key points of Section 43:
· The transferor must have made a false representation or misrepresentation about ownership.
· The transferee should have acted in good faith.
· Once the transferor acquires the property, the title automatically passes to the transferee.
This Section also creates an exception to the "Nemo dat quod non habet" rule by allowing the transferee to obtain a better title than what the transferor originally had.
Additional Knowledge
Section 42: Transfer by a person having authority to revoke former transfer
Section 42 deals with the situation where a person has the authority to transfer a property that is subject to a condition or trust and uses this power to transfer the property. It states that if a person transfers property under a revocable arrangement or condition and the condition lapses, or the person gains full ownership after the transfer, the transfer remains valid. This Section is not an exception to "Nemo dat quod non habet" but deals more with subsequent changes in ownership rights and the fulfillment of conditions.
Section 44: Transfer by one co-owner
Section 44 governs the transfer by one co-owner of a jointly owned property. It states that one co-owner can transfer his share of the property, and the transferee can step into the shoes of that co-owner. The transferee gets the same rights and obligations that the transferring co-owner had. This Section does not provide any exception to the "Nemo dat quod non habet" rule because the transferor is transferring only what he owns (his share of the property). Therefore, this Section is unrelated to the exceptions of the maxim.
