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Westlaw Document 07-16-04
Westlaw Document 07-16-04
[1990] R.T.R. 91 Times, May 19, 1989 [1990] R.T.R. 91 Times, May 19, 1989
17 May 1989
Case Analysis
Case Digest
Catchphrases: Estoppel, theft of car, whether estopped from denying seller's right to sell car where delay in
reporting theft
Abstract: An owner of a vehicle is not estopped from denying a vendor's right to sell the vehicle where he
has been forced to sign a purported receipt at gunpoint. P, in the course of an armed robbery, was forced at gunpoint
to sign a purported receipt for GBP 46,000 in exchange for his Mercedes motor car. The vehicle was then sold on by
the robbers, being bought eventually by D. P, because of threats made by the gunmen, did not report the theft for a
month. Eventually the police recovered the vehicle and P sued for damages for conversion. D sought to rely upon
the Sale of Goods Act 1979 s.21(1), arguing that P's conduct in signing the receipt precluded any denial by him of
the seller's authority to sell.
Held, giving judgment for P, that the doctrine of estoppel by representation implied a representation
voluntarily made and P, having been forced to sign at gunpoint, should be in no worse position than one who had
been signed as a result of fraud. The robbers could not acquire good title and P was not prevented from denying their
authority to sell. There was no duty of care to prospective future purchasers of a stolen vehicle to report its loss to
the police Central Newbury Car Auctions v Unity Finance [1957] 1 Q.B. 371 considered, Farquharson Bros & Co v
C King & Co [1902] A.C. 325, Moorgate Mercantile Co Ltd v Twitchings [1977] A.C. 890 and applied.
Appellate History
Related Cases
considering
applying
Moorgate Mercantile Co Ltd v Twitchings
[1977] A.C. 890; [1976] 3 W.L.R. 66; [1976] 2 All E.R. 641; [1976] R.T.R. 437; (1976) 120 S.J. 470
HL
applying
J&E Hall Ltd v Barclay
CA
applying
Farquharson Bros & Co v C King & Co
[1902] A.C. 325
HL
Legislation cited
Journal Articles
Property insurance.
Estoppel, Motor insurance, Theft, Title to goods
Ins. L.M. 1989, 1(5), 11-12
END OF DOCUMENT