Legal Definitions - bona fide sale

Definition: A bona fide sale is a transfer of property or title for a price. It is a sale made by a seller in good faith, for valuable consideration, and without notice of a defect in title or any other reason not to hold the sale.

Examples: An example of a bona fide sale is when a person sells their car to another person for a fair price, without knowing that the car has any defects or issues. Another example is when a company sells its products to a customer for a fair price, without knowing that the products are defective or not as described.

Explanation: In both examples, the sale is made in good faith, with valuable consideration (money), and without knowledge of any defects or issues with the property being sold. This type of sale is important because it protects both the buyer and the seller from any legal issues that may arise from a defective or fraudulent sale.