Concept of Title Flashcards
Define Title?
legal right to the property
A thief never gets title.
If a person through deception or deceit, induces another to hand over the goods with the intention that the title will pass, does get title.
What is voidable title
Title obtained by deception, fraud, duress or misrepresentation is called a ‘voidable title’.
This means that the title can be avoided by the seller.
If innocent purchaser buys goods obtained by deception, before title has been avoided, he’s entitled to goods.
Until the title is avoided, the defrauder has a voidable title, and can confer good title on anyone who acquires the goods from him in good faith and for value.
What is necessary to avoid title?
To avoid the title, A must do one of the following:
• communicate with B
• take all other possible steps to bring it to B’s notice, eg by writing a letter
• advise the police that the vehicle was obtained by deception/fraud.
When does Section 25 of Sale of Goods Act become relevant
Where seller of goods with voidable title on sells goods before title has been voided. Buyer acquires good title (keeps goods)
Chart concept of title
Refer to Chart
Points and facts
When a defendant obtains goods by deception he or she obtains both title and possession.
Title will pass because goods are generally handed over to the offender with the consent of the complainant when goods are obtained by a deception.
This is different to theft where the goods are taken without the owner’s consent. A thief never gets title to property.
If an innocent purchaser buys goods obtained by a deception, before title has been avoided, then he or she is entitled to a good title.
The original person deceived can, however, void the title while still in the hands of the deceiver
Under s25, if the owner has not avoided its contract with the seller before the sale, the buyer will obtain good title. If the owner has avoided the contract before the sale, then the buyer will not obtain title,
