Legal Principle: An essential condition in a contract for sale of goods is that the seller has title over the goods sold.

Fact Situation: Ranjan pays rupees two thousand and buys a watch from Mohit who runs a watch showroom and a repair shop. Jatin sees the watch with Ranjan and tells him that it is his watch and was only given to Mohit for repairs. If what Jatin says is true

Which of the following statements is the most appropriate in relation to the legal principle stated above?