JAMB Commerce 2012 Objective — Question 43

Question 43 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2012 Objective paper, with the correct answer and a full explanation.

Yahya bought a piece of furniture on a credit sale agreement from Ahmed and resold it to Ali before installments were made. The court upheld that Ahmed could not recover the goods from Ali. The reason for the judgement was because

A. ownership was transferred on completion of installments
B. Ali was indebted to Ahmed for the goods
C. ownership of goods was transferred to Ali on deliveryCorrect
D. the agreement had already lapsed

Explanation

In credit sales arrangement, ownership of goods is transferred to the buyer on delivery of the goods. Thus, the purchase of Ali from Yahya is well and valid and thus, Ahmed cannot recover the goods from Ali.

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