Priorities at common law

Question 1

Where is nemo dat codified?

Answer 1

Sales of Goods Act 1979 s21(1).

Question 2

What are the 8 exceptions of nemo dat?

Answer 2

1) Seller in Possession.
2) Buyer in Possession.
3) Sale Under Voidable Title.
4) Sale by Mercantile Agent.
5) Car under Hire-Purchase.
6) Estoppel.
7) Negligence.
8) Money.

Question 3

What is the seller in possession rule and where is this exception codified?

Answer 3

Rule: when A sells to B but maintains possession he can still sell to C and title still passes. It is codified in SGA 1979 s24.

Question 4

What is the buyer in possession rule and where is this exception codified?

Answer 4

Rule: you can buy goods without paying for them and if you have possession, you can still transfer title to third-party. It is codified in SGA 1979 s25.

Question 5

What is the sale under voidable title rule and where is this exception codified?

Answer 5

Rule: if you sell while transaction is still voidable, then title passes. It is codified in SGA 1979 s23.

Question 6

What is sale by mercantile agent rule and where is this exception codified?

Answer 6

Rule: a person who is (1) working within the ordinary course of business, (2) who has possession, and (3) who has that possession with owner’s consent = is considered a mercantile agent and hence can pass title even if they do not have title. It is codified in the Factors Act 1889 s2, 8, 9.

Question 7

What is the car under hire-purchase rule, and where is this exception codified?

Answer 7

Rule: if you are hiring a car under hire-purchase you can sell it as long as buyer is a private purchaser not a car dealer. It is codified in the Hire-Purchase Act 1964 s27.

Question 8

What is the estoppel rule, and where is this exception codified?

Answer 8

Rule: if you were told by owner of goods that X does in fact own the goods and you take his word for it he can’t later deny it. It is codified in SGA 1979 s.21(1).

Question 9

What is the negligence rule, and where is this exception codified?

Answer 9

???

Question 10

What is the money rule, and what case illustrates this exception?

Answer 10

Rule: money passes anyhow without nemo dat applying. As illustrated in Miller v Race.

Question 11

This case illustrates the seller in possession exception. Give facts and held.

Answer 11

Worcester Works Finance Ltd v Cooden Engineering Co - facts - man who sold car under voidable contract, sold it to original person who he took it from in the first place. Held: he was a seller in possession.

Question 12

This case illustrates the buyer in possession exception. Give facts and held.

Answer 12

Newton’s of Wembley v Williams - man gives bad check and sells car after transaction voided. Held: Title passes because he is considered a mercantile agent because 1) he operated within ordinary course of business, 2) was in possession, 3) with owner’s consent.

Question 13

This case illustrates the sale under voidable title exception. Give held.

Answer 13

Car & Universal Finance Co Ltd v Caldwell. Held: Communication to police is enough of an action to void transaction.

Question 14

This case illustrates the sale by mercantile agent exception. Give facts and held.

Answer 14

Oppenheimer v Attenborough - facts - owner gives diamond to broker to show to buyers, broker pledges instead. Held: broker was mercantile agent so owner cannot get it back.

Question 15

This case illustrates an aspect (who is considered a dealer) of the car hire purchase exception. Give held.

Answer 15

GE Capital Bank Ltd v Rushton - held - private purchaser becomes dealer if he sells a car.

Question 16

This case illustrates the estoppel exception. Give facts and held.

Answer 16

Henderson & Co v Williams - facts - bailee (for storage) said x had ownership when in fact he’s a fraudster who sold to x2. Held: bailee had to give possession to x2.