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Sale of Goods > Nemo Dat > Flashcards

Nemo Dat Flashcards

1
Q

What is the general nemo dat rule and where is it found?

A

A person cannot give what they do not have – s21(1) SoGA

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2
Q

What are the two main requirements of the nemo dat rule? Evidence?

A
  1. Goods must be “sold” by non-owner – Shaw v Commissioner of Police
    Shaw could not rely on exception to nemo dat rule because there had only been an agreement to sell
  2. There must not be consent of the owner – s 47 SoGA – Mordaunt v British Oil
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3
Q

What are the 7 exceptions to the nemo dat rule?

A
  1. Agency
  2. Estoppel
  3. Estoppel by agency
  4. Buyer in possession
  5. Seller in possession
  6. Voidable title
  7. Hire purchase arrangement
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4
Q

NEMO DAT EXAMPLE: AGENCY

What are the two types of agency?

A

Actual

Ostensible / apparent

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5
Q

Which case distinguishes between actual and apparent authority?

A

Freeman & lockyer v Bruckhurst Properties
Actual – consensual agreement to which principal and agent are parties
Apparent – representation made by principal to third party that they have the principles authority

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6
Q

What are the 3 requirements for agency to arise? Case?

A

Rama Corporattion v Proved Tin and General Investment

  1. Representation / appearance that the agent has authority
  2. Representation must be made by the principal
  3. Representation must be relied upon by a third party
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7
Q

Can an agent make a representation that he is authorised? Cases?

A

NO – Armogos v Mundegas

HOWEVER – First Energy v Hungarian International bank
Bank manager had no authority to confirm a loan, but his position meant he could communicate decisions of more senior members – therefore claimants could rely on offer they received

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8
Q

(Agency) What rules concern reliance? Cases?

A

There is no apparent authority where third party knows….

  1. Agent has no authority – armagas v Mundogas
  2. Agent acts for himself – wattleau v Fenwick
  3. Principal limited agents authority – pharmed medicare v univar
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9
Q

NEMO DAT EXCDEPTION:
ESTOPPEL

Which main law concerns estoppel?

A

S21(1) SoGA

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10
Q

What are the two ways estoppel can arise?

A
  1. By words / conduct (representation)

2. By negligent omission (estoppel by negligence)

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11
Q

What 3 main cases concern estoppel?

A
  1. Central Newbury Car Auctions v Unitary Finance
  2. Eastern Distributors v Goldring
  3. Henderson & Co v William
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12
Q

Facts of Central Newbury Car Auctions v Unitary finance

A

Mere possession is not sufficient to amount to representation that possessor in goods is allowed to deal in them – rogue had possession of the car, but not the REGISTRATION DOCUMENT

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13
Q

Facts of Eastern Distributors v Goldring

A

C was estopped from preventing sale of the van because they signed HP Arrangement stating that the car dealer was the owner of the van – this amounted to a representation

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14
Q

What are the two limits to estoppel? Cases?

A
  1. Agreement to sell – Shaw v Commissioner of Police; there must be an actual sale
  2. Duress – Debs v Sibec Developments
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15
Q

What criteria must be fulfilled for estoppel by negligence to arise? Case?

A

Mercantile Credit v Hamblin

  1. Duty of care
  2. Breach of duty
  3. Causation

In this case, there was no breach of duty

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16
Q

NEMO DAT EXCEPTION: BUYER IN POSSESSION

Which pieces of legislation concern buyers in possession?

A

S25 SoGA, and

s9 Factors Act

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17
Q

What is the scope of the buyer in possession exception?

A
  1. Buyer 1 must have bought goods / agreed to buy
  2. Buyer 1 must have possession
  3. Possession must be with consent of seller
  4. Buyer 1 must sell / pledge / dispose to buyer 2
  5. Buyer 1 must deal as mercantile agent
  6. Buyer 2 must act in good faith and without notice of the sellers interest
18
Q

buyer in possession

Which case states that buyer 1 must have possession?

A

Fadallah v Pollack

Can be actual OR constructive possession

But must be before sale / agreement to sell the goods

19
Q

Buyer in possession

Which cases state that possession must be with the consent of the seller?

A

Du Jardin v Beadmans – consent by deception

National Employers v Jones – theft breaks the chain of causation

20
Q

buyer in possession

Which case states that buyer 1 must pledge / dispose / pledge to buyer 2?

A

Forsythe International v Silver Shipping Co

21
Q

buyer in possession

Which case states that buyer 1 must act as a mercantile agent?

A

Newtons of Wembley v Williams

22
Q

buyer in possession

Which case states that buyer 2 must act in good faith without notice of sellers interest?

A

The Saetta

23
Q

NEMO DAT EXCEPTION: SELLER IN POSSESSION

Which laws concern seller in possession?

A

S24 SoGA, s8 Factors Act 1989

24
Q

NEMO DAT EXCEPTION: SELLER IN POSSESSION

Give an example of seller in possession

A

Worcester Works Finance v Cooden

Car dealer sold car to finance company by falsely saying he was entering into Hire Purchase Arrangement
Dealer then kept car and sold it onto innocent third party

25
Q

NEMO DAT EXCEPTION: SELLER IN POSSESSION

What is the scope of seller in possession exception?

A
  1. Must be an actual sale
  2. Seller must have possession of the goods
  3. There must be delivery of goods to B2
  4. B2 must act in good faith
26
Q

NEMO DAT EXCEPTION: SELLER IN POSSESSION

What rules exist concerning possession? Cases?

A

Possession also means bailment on behalf of seller –

City Manufacturing v Fureenband

Possession must be physical and continuous from sale to B1 to resale – Pacific Motor auctions v Motor Credits

27
Q

NEMO DAT EXCEPTION: SELLER IN POSSESSION

What kinds of delivery are possible to buyer 2?

A

Actual – Nicholson v Harper

Constructive – Gerson v Wilkinson

28
Q

NEMO DAT EXCEPTION: SELLER IN POSSESSION

Where can we find the rule that B2 must act in good faith?

A

S61(3) SoGA

29
Q

NEMO DAT EXCEPTION: SELLER IN POSSESSION

How is good faith defined?

A

something that is done honestly, whether it is done negligently or not

30
Q

NEMO DAT EXCEPTION: SALE UNDER VOIDABLE TITLE

Which piece of legislation concerns sale under voidable title?

A

S23 SoGA

31
Q

NEMO DAT EXCEPTION: SALE UNDER VOIDABLE TITLE

What is the scope for sale under voidable title?

A
  1. B 1 must have a voidable title
  2. B2 must act in good faith without knowledge of defect in title
  3. Sale to B2 must take place before original sale sought to be avoided
32
Q

NEMO DAT EXCEPTION: SALE UNDER VOIDABLE TITLE

In what 3 circumstances can a voidable title arise?

A
  1. Misrepresentation / mistake as to identity
  2. Duress
  3. Undue influence
33
Q

NEMO DAT EXCEPTION: SALE UNDER VOIDABLE TITLE

Which 3 cases concerns misrepresentation?

A

Lewis v Averay

Cundy v Lindsay

Shogun Finance v Hudson

34
Q

NEMO DAT EXCEPTION: SALE UNDER VOIDABLE TITLE

What rule is established in Lewis v Averay?

A

Face to face transactions held to be VOIDABLE

35
Q

NEMO DAT EXCEPTION: SALE UNDER VOIDABLE TITLE

What rule is established in Cundy v Lindsay?

A

Distance contracts are not covered by s23 SoGA

This is because they are VOID not voidable

36
Q

NEMO DAT EXCEPTION: SALE UNDER VOIDABLE TITLE

What are the facts of Car & Universal Credit v Caldwell?

A

Owner of stolen car notified all relevant authorities before sale took place – therefore notice of rescission took place

37
Q

NEMO DAT EXCEPTION: HIRE PURCHASE ACT

Which law concerns Hire Purchase?

A

S27 HPA

38
Q

What are the main requirements of the Hire purchase exception?

A
  1. Must be motor vehicles only (requires engine to propel along motorway)
  2. Seller must be in possession under HP or conditional sale arrangement
  3. Innocent party obtains goods via disposition via debtor in possession
  4. Disposition must be relevant and timely – S29 HPA
  5. Disposition must be made to a private purchaser
  6. Private purchaser must purchase in good faith
39
Q

NEMO DAT EXCEPTION: HIRE PURCHASE ACT

Which cases concern private purchaser?

A

GE Capital Bank v Rushton

purchaser bought cars with a view to making profit

Welcome Financial Services v Nine Regions – concerned “finance purchaser”

40
Q

Where does the hire purchase exception not apply? Law? Case?

A

Where contract is void due to mistaken identity
S27 HPA
Shogun Finance V Hudson

Sale of Goods (6 decks)

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