Title

Question 1

Voidable title

Answer 1

A title obtained by deception, fraud, duress or misrepresentation is called ‘voidable title’. This means the title can be avoided by the seller.

Thus, if an innocent purchaser buys goods obtained by deception, before title has been avoided, the he or she is entitled to good title.

Until the title is avoided, the defrauder has a voidable title, and can confer good title on anyone who acquires the goods from him or her in good faith and for value.

Question 2

What is necessary to avoid title

Answer 2

• Communication to B. The taking of all possible steps to bring it to B’s notice, eg by writing a letter, text, phone call etc.
• By advising the police that the vehicle was obtained by fraud.

Question 3

When the sale of goods Act 1908, s25, is relevant

Answer 3

Where the seller of goods has a voidable title thereto, but his title has not been avoided at the time of the sale, the buyer acquires a good title to the goods, provided he buys them in good faith and without notice of the seller’s defect of title.