Title to Goods CASES
In English law, title to goods refers to legal ownership and the right to control, use, or transfer goods, crucial in determining rights and liabilities in commercial transactions.
Definition and Principles
Title signifies lawful ownership, establishing who bears risks or can lawfully sell or transfer goods. Issues of title frequently arise regarding disputes over sales, deliveries, insolvency, or theft.
Key Considerations
- Transfer of Title: Usually occurs upon agreement, payment, or delivery, depending on contractual terms.
- Retention of Title (ROT) Clauses: Sellers may retain ownership until full payment, protecting their interests if buyers default or become insolvent.
- Risk vs Title: Ownership and risk of loss might pass separately based on contract terms.
Legal Consequences
Determining title affects remedies, including the right to repossess, sue for non-payment, or claim compensation for damages.
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A rogue impersonated a reputable person to obtain a ring from a jeweller with a false cheque. The court held the contract was voidable for fraud, not void for mistake, as the jeweller intended to contract with the person physically present. Facts A man named North entered the plaintiff’s (Phillips) jewellery shop and selected pearls and a ring. He identified himself as ‘Sir George Bullough’ and provided a corresponding address. The plaintiff verified the name and address in a directory and, believing the representations, allowed North to take the ring in exchange for a cheque. The cheque was subsequently dishonoured
A car was sold to a rogue who paid with a fraudulent cheque. The original owner, upon discovering the fraud, immediately informed the police. This action was held to be a valid rescission of the contract, preventing title from passing to a subsequent innocent purchaser. Facts On 12th January 1960, Mr Caldwell, the defendant, sold his Jaguar motor car to a man named Norris. The sale was induced by fraudulent misrepresentation, as Norris paid with a cheque that was later dishonoured. Upon discovering the fraud the next morning, Mr Caldwell immediately reported the matter to the police and the Automobile
