SOGA Presentation 2 - Transfer of title Nemo dat quod non...

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Transfer of title Nemo dat quod non habet “No one can transfer a better title than he has” S 27- goods sold by non-owner, sold without the authority or consent of the owner, ownership did not pass to B. B cannot get the title even if he had paid good value in good faith. The purpose of the rule: to protect the right of the original owner
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Lim Chui Lai v Zeno Ltd A had contracted to construct the culverts with PJ Municipality. Z contracted with A to supply materials and to finance the project . A’s contract with PJ municipality for the work was cancelled. Z told A that all the materials at the construction site belongs to it. A sold the material to L. A had no title to the materials. A cannot transfer the property to L.
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The exception to the rule is needed for commercial necessity. S 27 i- estoppel Owner’s conduct manifested to B that S is authorised to sell. B believed S’s authority to sell. Relying on that belief B contracted with S . B paid value in good faith.
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Syarikat Batu Sinar Sdn Bhd and Ors v UMBC Finance Bhd A bought a caterpillar from B and leased it to C . The Registration card stated that the right of ownership is in A’s hand. Earlier B had sold the same tractor to D. (No registration card was available). D hired the same to E. E default in payment. D wanted to repossess.
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S 27 was applied. Court decided that UMBC was estopped from denying the fact that D has authority to sell the tractor because their failure to register their ownership manifested to others that the ownership in the car belongs to B.
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ii- sale by mercantile agent S 27 S 2 of the SOGA defined mercantile agent as an agent who in the customary course of its business has authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods, or to raise money on the security of goods; conditions: a) A mercantile agent possess goods or a document of title to the goods; b) Have possession with the authority (actual or apparent) of the owner;
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a) B must have acted in good faith, without notice of agent’s lacks of authority at the time of contracting. b) Sale made in the ordinary course of business of a mercantile agent; [act in a way a mercantile agent would act] Folkes v King F owned a car which he wished to sell. Delivered the card to H, a mercantile agent for sale. F wanted £575 for the car. H sold it for £340 to K, and absconded. F sued K to repossess the car. H possessed the car with F’s authority. K obtained a valid title to the car.
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iii- sale by joint-owners S 28 sale by joint-owner of the goods (his share and of the others) without authority – effective transfer of title to B. Conditions: a) One of the joint-owner has sole possession with permission of co-owners; and b) B acted in good faith without notice of S lacks of authority
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S 29 – sale under s 19 and s 20 of the Contract acts, B possesses goods under a voidable contract, B has a title to the goods until S choose to rescind the contract. B got a good title, can transfer the title to another
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SOGA Presentation 2 - Transfer of title Nemo dat quod non...

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