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Published by Adam 'Fez' Ferris
Property Notes courtesy of Nick 'Big Dog' Wood
Property Notes courtesy of Nick 'Big Dog' Wood

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Published by: Adam 'Fez' Ferris on Apr 15, 2010
Copyright:Attribution Non-commercial


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ContractsContract law and property law very much intersect, contracts as one source or rights and property asone kind of right. Contracts are the most common method of transferring legal title to goods, overdelivery, deeds and registration as discussed in conveyances.Sale of GoodsThe Sale of Goods Act provide rules for determining the passing of title and risk in sections 16-20b.Sections 21 and 23 pertain to sale by a person who isnt the owner and sale under a voidable title.In contract, for specific goods in a deliverable state, title normally passes when the contract is made,even if payment and delivery are postponed. When does title pass in Wardars v Norwood & Sons?Applying section 29(3) of the Sale of Goods act title is said to pass when the third partyacknowledges to the buyer that he holds the goods on his behalf so when the cold storage officialacknowledged to the carriers driver that the goods were his. Why did title not pass when thecontract was made? This is because of section 16 of the sale of goods act which states that wherethere is a contract for sale of unascertained goods, no property in the goods is transferred to thebuyer unless and until the gods are ascertained, which of the cartons were to be selected by thebuyers was not ascertained. Did title pass before delivery? Therefore, title
pass before delivery.What prevented title from passing in Re Goldcorp Exchange Ltd? The goods were unascertained andtherefore the non-allocated claimants did not acquire immediate title by reason of their contract of sale. Did they acquire a proprietary interest after the company purchased the bullion and put it in itsown stock? Privy council says no. Sections 20a and 20b of the Sale of Goods Act may have affectedthe outcome of this case howeverIf the contract of sale is void the sellers title does not pass to the buyer (though they may acquirerights through possession), if it is voidable then the sellers title does pass to the buyer so often thesedecisions rest on that fact. In Shogun Finance Ltd v Hudson the innocent purchaser of a motorvehicle from a rogue who had obtained it fraudulently by signing a hire-purchase agreement with aforged signature did not obtain a good title to it. The Law Lords supported the finance company andstated that the innocent purchaser could not win becausethe debtor (supposedly Mr Patel whossignature was forged) had not disposed of the vehicle to him as required by the 1964 Hire PurchaseAct that Mr Norman, the innocent party was relying on. Mistaken identity is the basis for rescissionof contract.Land ContractsContracts for the sale of land differ from contracts for the sale of goods in several importantrespects...Title to land does not pass when the contract is made, the contract is a registration.

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