Title Flashcards
What is title
A legal right to the property
What is Voidable title
A title obtained by deception, fraud, duress or misrepresentation.
Meaning the title can be avoided by the seller
What is necessary to avoid title
Communication to B.
Take all possible steps to bring it to B’s notice, eg, writing a letter, text, phone call
Advising the police that the property was obtained by deception
When does title pass
If the title has not been avoided at the time of sale and the goods are bought in good faith without notice of the sellers “defect” title
Rule of law around title
No one can pass on a better title than they had themselves
When can someone be charged with receiving
If they received it in bad faith or knew of the defect in title
Could also be a party to the false representation
Title Chart
Car bought - sold to buyer - title void - buyer keeps
Car bought - title void - sold to buyer - seller gets car back
Car bought - title void - given knowing receiver - seller get car back (receiver liable)
Car bought - given to knowing receiver - title void - seller gets car back (receiver not liable)