Og&repo

Question 1

Rodger Builders v Fawdry

Answer 1

In order for the offside goals rule to apply

1) The first buyer must have started but not completed the transfer process
2) the second buyer must then buy the thing
3) the second buyer must have knowledge or constructive knowledge of the existing contractual right
4) the onus is on the second buyer to investigate whether the first buyer has title

Question 2

Burnett Tr v Grainger

Answer 2

The offside goals rule only applies to voluntary grantees not creditors doing due diligence or trustees in sequestration (bankruptcy)

Trustee in sequestration/ in charge of making sure creditors etc paid

Question 3

What is the offside goals rule and where is it found?

Answer 3

The offside goals rule applies when a second party contracts for the sale of a thing whilst the first party has started but not completed the transfer process. It requires that the second party has some knowledge that there might be an enduring contractual relationship.
The main authority is Rodger Builders v Fawdry.
The test found in Rodger builders was that the second buyer knew or constructively knew of the first potential buyers existing contractual right. The onus is then on the second buyer to investigate whether the first buyer has a right. The offside goals rule only applies to voluntary grantees, not creditors doing diligence or to trustees in sequestration. (Burnett Tr v Grainger)