Nemo dat quod non habet

Nemo dat quod non havet meaning that "no one can give what he not have" is a legal rule, sometimes called the nemo dat rule, that states that the purchses of a pressession from someone who has no ownership right to is also denies the purchaser any ownership title. This rule usually stays valid even of the purchaser does not know that seller has no right to claim ownership of the object of the transaction. However, it is often difficult for courts to make judgement as in may cases there is more than one innocent party. On top of that, this term also can be defined that if you are not the legitimate owner of an item you are not justified to despatch it to anybody else as you cannot give something that does not belong to you. This is designed to protect the true owners. If anybody is trying to sell an item without that legitimate owner's permission.
This principle is clarified in Section 27 of the Sale of Goods Act which explains that anybody purchasing something without the consent of the legitimate owner only attains the same rights to an item as the dishonest seller. An unauthorized vendor only obtains the capacity to sell this item if the rightful owner is disallowed, by some behavior from giving permission to this unauthorized sale.

Sections 26(1) of Sale of Goods Act states that a buyer from non-owner obtains no better title than the seller had, epitomizing the meaning under the nemo dat no habet. The Mercantile Law Amendment Act specified that 'document of title' includes a Bill of Lading or a Warehouse Receipt or any delivery docket for goods as proof. The Sale of Goods Act 1994 also specifies that a seller has certain responsibilities which must be fulfilled before goods may be sold legally.

Following rule can be varied by a number of exceptions, all of which will be discussed in this essay and are listed below for ease of reference:

1. Mercantile Agent
2. Joint Owner
3. Voidable Contract
4. Possession of Goods after Sale
5. Buyer in Possession
6. Unpaid Seller
7. Permission by Partner
8. termination of Offer
9. Valid, quasi contracts
10. Condition: warranty