question where it is explicitly a destination contract where a truck is hijacked.Some goods are delivered through a document of title, where if you buy 1,000 lbs. of copper, you’ll probably never actually have the copper. If you’re into commodities, it is not like you’ll ever see all of that copper in your backyard; it is in a warehouse somewhere and you receive a title to it. Title passes when the document is delivered, and if no title is delivered, title passes when the goods are identified. I have never ever tested on this.Questions?Sale by NADA. There are a lot of times where you might buy something from somebody who is not the actual owner. The first rule is covers a void title, which is generally a stolen good—a thief cannot transfer title. That’s just the rule. There are situations where titles can be voidable, such as when a minor purchases a car. A minor, somebody under the age of 18, can say “I don’t want to buy this anymore.” They do not have a perfect title, they have a voidable title. If I 15 year old sells you something, they can ask for it back. Their title is voidable.I talk about this because there are a lot of cases we are doing and I love art law cases. I cannot make art,and it is my worst skill. But art cases are absolutely the best. Especially with the buying and selling of goods, such as paintings, it is the most fascinating stuff in the world. We will do two cases which will shed tremendous light on as to why art cases are more interesting than any other case ever.To tell you about the void title, it has become more popular since movies like The Monument Men. But apparently something like between 25%-33% of all art in Europe during WWII was stolen. Well, that’s stealing, so if you today, bought a painting from a dealer or a gallery, which was $100,000 and a Picasso, would that feel like a back-of-the-van transaction or would it feel perfectly normal? If that painting was stolen during WWII, you have purchased a void title, and you must give it back, even if you spent $1,000,000 on a new Picasso, you must give it back. So that is one way as to why buying art is so crazy. There is a high chance that it was stolen at one time, and the owner could just show up at some point in the future and ask for their painting back.So if a thief sells and item to someone, who in turn sells it to somebody else, the title remains void, and the item must still be returned to the original owner. However, with a voidable title, we have a different rule: a good faith purchaser. A good faith purchaser is one who buys without knowledge of circumstances which makes an ordinary person inquire about the validity of the goods.
So a 15 year old has a voidable title and sells a car to your 25 year old neighbor, and your neighbor then in-turn sells the car to you. Even though that is a voidable title because the first owner was a 15 year old, you have now received the title. If you are an ordinary person, who had no idea that a 15 year old sold a voidable title, when your neighbor sold you the title, you now have a good title. Another one would be like duress. If somebody says, we’re going to get flooded in a week and you need to buy our sandbags to protect your house, you have a voidable title when you buy them. Duress normally makes a voidable title.
- Winter '20
- Transcription, Merchant, Mr. Porter, Timothy Allen