Where a person fraudulently or erroneously represents that he is authorised to transfer certain immovable property and professes to transfer such property for consideration, such transfer shall, at the option of the transferee, operate on any interest which the transferor may acquire in such property at any time during which the contract of transfer subsists.
Nothing in this section shall impair the right of transferees in good faith for consideration without notice of the existence of the said option.
Legal Commentary & Landmark Judgments: Section 43
Section 43 of the Transfer of Property Act, 1882 codifies the doctrine of 'feeding the grant by estoppel', compelling an unauthorized transferor who subsequently acquires title to perform the conveyance.
The second paragraph protects bona fide purchasers for value without notice of the option, ensuring that subsequent innocent buyers are not prejudiced.
Section 43 operates at the option of the transferee. The transferee is not required to file a fresh suit for specific performance; they can simply elect to claim the acquired estate. If the transferee previously repudiated the contract or obtained a refund of consideration before the title was acquired, the option under Section 43 is extinguished.