Sale of Goods by Non-Owners

Situations involving sale of goods by non-owners

a. Stolen goods

If the goods turn out to have been stolen, the buyer is entitled to the return of the whole of the purchase price – breach of condition implied by S12(1) – right to sell the goods must have a title that can be conveyed - Rowland v Divall. It is not only breach of an implied condition but there is no consideration as the buyer has paid the purchase money without any corresponding detriment on the seller's part. The whole object of a sale to transfer property from one to another has been defeated.

b. Imitation goods

Property is in the goods but no title and therefor there is no sale as there is no title to convey – Niblett v Confectioners’ Materials.

c. Mistake as to identity

Whether the title is voidable or void - the real test lies in the intention of the original seller. If his intention was deal with and pass title to the original buyer, regardless of the fraud, then the contract will merely be voidable : Ingram v Little. If his intention was to pass title not to the original buyer but to someone else, but was defrauded into dealing with the original buyer then the contract will be void – Shogun Finance Ltd v Hudson . A however can void B’s title by making a report to the police : Car & Universal Finance Ltd v Caldwell.

The original owner word argue that the title transferred by the seller was not merely voidable but void in order to continue to assert his right as owner.

References

Battersby and Preston The concepts of property, title and owner used in the Sale of Goods Act 1993

Graham Battersby A Reconsideration of Property and Title in the Sale of Goods Act

David Tiplady When is a seller not a seller