Title Flashcards
Define Title
Title is not defined in the CA 1961.
The Oxford Dictionary defines title as “a right or claim to the ownership of property”.
“Title” simply means a legal right to the property.
Discuss how a seller’s lack of title relates to their sale of goods.
A person cannot give better title to property than they own.
Where a seller, who has no rights of ownership to the goods and who 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.
How does theft differ to deceit in relation to Title?
There is a material difference between theft and obtaining by deceit.
A thief never gets title. However, a person, who by deception or other deceit, induces another to hand over the goods (and title), title will pass.
Note, however, that there may be limitations on this title.
What is meant by “Voidable Title” and when might the term be applicable?
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 voided, 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 good value.
Example: The complainant believes an altered gift card given to him to be good and valuable, so he is happy to hand over not only possession of the goods but title to them as well. The result is that the offender obtains title, albeit a voidable title.
What does it mean for title to be “voided”?
A seller of goods who has been deceived in relation to the sale can “void” title by making a criminal complaint.
Voidable title will at this point by voided (meaning the person who deceived them no longer has title), however if an innocent party has since acquired the goods in good faith and without notice of the seller’s defect of title, that party acquires good title.
