This chapter examines how a buyer can get good title to goods where the seller’s own title is non-existent or problematic. It provides an overview of the rule nemo dat quod non habet and then discusses various exceptions to it, including estoppel, sale under the Factors Act 1889, sale under a voidable title, sale by seller continuing in possession, and sale by a buyer in possession. In addition this chapter compares the common law and civil law approaches to the problem and encourages a critical approach to the issues it raises.
Chapter
10. Transfer of title
D Fox, RJC Munday, B Soyer, AM Tettenborn, and PG Turner
Chapter
17. Title conflicts in sale transactions
This chapter focuses on title conflicts in sale transactions. Despite the technological changes in improving data capture, storage, and analysis that can help provide a greater capacity to record tidal and goods information, it is not the panacea to title conflicts arising from information asymmetry since it also occurs due to conflicting interests. Section 21 of the Sale of Goods Act 1979 (SGA) preserves the basic common law principle (nemo dat quod non habet) that is subjected to exceptions. The provision also contains the principle of estoppel. The chapter acknowledges that the nemo dat principle itself is simple but some of its laws and exceptions are outdated.
Chapter
4. The creation of the agency relationship
This chapter considers the various methods by which a relationship of agency can be created, namely by agreement, by ratification, by operation of law (including agency by necessity), and agency arising due to estoppel. It should be noted that an agency relationship might be held to exist, even though the parties or one of the parties do not wish for it to exist, or have expressly declared that such a relationship does not exist. Equally, the fact that the parties describe themselves as ‘principal’ and ‘agent’ will not conclusively establish that a relationship of agency exists, and the courts will disregard such labels if the realities of the relationship indicate that it is not one of agency. An agency relationship can therefore be created consensually or non-consensually. The chapter also discusses preliminary issues such as the capacity of agent and principal, and the formalities needed to create a relationship of agency.
Chapter
7. Transfer of ownership by a non-owner
Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for, and how to achieve extra marks. This chapter, which focuses on the situation where a seller is able to transfer ownership of certain goods to a third party despite having no right to the goods, first explains the so-called nemo dat rule, which protects the true owner of the goods and the innocent purchaser gets no title whatever. It then considers several statutory exceptions to the nemo dat rule that protect the innocent purchaser. The chapter also examines how estoppel is applied, sale by a mercantile agent, void and voidable contracts, sale by a seller in possession after sale, sale by a buyer in possession after sale, sale of a vehicle acquired on hire purchase, the (now repealed) sale in market overt, and special powers of sale.
