Concept of Title (Module) Flashcards
What is the Definition of Title?
Oxford Dictionary
A right or claim to the ownership of property
In other words, title simply means a legal right to the property
It is a rule of law that no one can pass on a better title then they themselves have. Where a seller, who has no rights of ownership to the goods and acts without the authority of the true owner, purports to pass title to a buyer, that buyer can receive no greater interest in the goods than the seller had.
Explain Dishonest vs Deceit
- A thief never gets title
- A person, who by deception or other deceit, induces another to hand over the goods with the intention that the title will pass, does get title
What is Voidable title?
A title obtained by deception, fraud, duress or misrepresentation is called a voidable title. This means that the title can be voided by the seller.
Until the title is avoided, the defrauder has voidable title, and can confer good title on anyone who acquires the goods from him or her in good faith and for value.
What is necessary to avoid title?
- communication to B that title is avoided. This involves taking of all possible steps to bring it to B’s notice that title is avoided e.g by writing a letter, text, phone call etc
- By advising the Police that the property was obtained by fraud
What is s25 of the Sale of Goods Act 1908?
Where the seller of goods has a voidable title thereto, but his tile has not been avoided at the time of the sale, the buyer acquires a good title to the goods, provided he buys then in good faith and without the notice of the sellers defect of title
When is s25 of the Sale of Goods Act 1908 relevant?
When property is obtained by obtained by deception, fraud, duress or misrepresentation and then sold to a buyer before title has been avoided, and the buyer buys it in good faith without knowledge of the deception.
When does title pass?
Under s19 of the Sale of Goods Act 1908, where there is a contract for the sale of specific goods between the parties, title passes when it was intended to pass by the parties.
S19(2) states to ascertain that intention, regards must be had to the terms of the contract, the conduct of the parties, and the circumstances of the case.
How can it be enforced that stolen property or dishonestly obtained property be returned?
- Court order
- statutory authority under s26(1) of the Sale of Goods Act 1906 where there has been a conviction
A thief never gets title so there is usually little problem in giving property back to the owner, even if a court order is not made.
Outline s246(4) CA 1961
Receiving after Restoration to owner
(4) if -
(a) any property stolen or obtained by any other imprisonable offence has been returned to the owner; or
(b) legal title to any such property has been acquired by any other person,
a subsequent receiving of it is not an offence, even though the receiver may know that the property had been previously stolen or obtained by any other imprisonable offence
How does s246(4) affect title?
Title (albeit voidable) obtained by means of a false pretence is still a legal title within s246(4).
s246(4) is an exception to the rule that you cannot get a better title that than the seller. If the original purchaser subsequently sells the good to an innocent buyer (one who is not aware of the defect in title) then the title has been made legal.
What happens if title to the property is avoided before sale?
This leaves the fraudulent offender with mere possession only as no legal title has been acquired. A subsequent receiving of the goods is an offence.
Consider whether the receiver is liable as a party to the false representation or obtaining by deception instead. The receiver can be charged if they received the goods in bad faith or knew of the defect in title.
What needs to be considered in relation to possess and title?
A distinction must be made between possession and tile as not all cases of false representation involve title.
Goods therefore are capable of being received where possession only is obtained by a false representation.
For example, for goods purchased on hire purchase, title is not obtained until the amount is paid in full and title remains with the owner/complainant. If the deposit is made on a hire purchase by using a stolen cheque then possession only is obtained and subsequently the good may later be received.
How does title relate to money?
Money, whether in the form of coins or notes, is recognised as legal currency. It passes freely from hand to hand, and who ever receives the money innocently and in return for value given, gets a good title even though the coins or notes may be clearly proved to have been stolen.
