Navigating the Nemo Dat Quod Non Habet Rule: A Look at Property Transactions in Malaysia under the Sale of Goods Act 1957

Abstract

The legal principle "nemo dat quod non habet" (no one can give what he has not) establishes that a person cannot transfer ownership of a property that they do not have legal title to. However, there are exceptions to this rule. In Malaysia, the application of the exception allowing for the transfer of property by a good faith buyer has been a topic of debate. Through examining the application of the exception under the Sale of Goods Act 1957, it can be argued that it has advantages such as promoting trade and commerce, as well as protecting good faith buyers. However, there are also potential disadvantages, such as increase uncertainty and the possibility of abuse. In conclusion, the legal system must carefully balance the promotion of trade and commerce with the protection of all parties involved in property transactions.