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EXCEPTION TO NEMO DAT RULE - Coggle Diagram
EXCEPTION TO NEMO DAT RULE
Estoppel
When the owner of the goods, from his conduct, makes a representation to the buyer that the person who sells the goods has his authority to do so and the buyer acts reliance on it, then the owner is estopped from denying the seller’s authority.
Case: Henderson & Co v Williams (1895)
Sale by mercantile agent
Section 27: Where a mercantile agent is, with the consent of the owner, in possession of the goods or document of title to the goods,
Section 2: "Mercantile agent" was described as a person who "has in the ordinary course of his business as such agent, authorization either to sell goods or to consign commodities for the purpose of sale, or to acquire goods or to raise money on the security of goods."
Sale by one of joint owners
Section 28: A sale by one of the owners of not merely his own share but of the whole property in the goods.
the buyer may obtain a good title,even though the seller was not authorised to do so, provided:
The seller has the sole possession of the goods with the permission of the co-owners
The buyer acts in good faith and has no notice of the seller’s lack of authority to sell at the time of the contract.
Sale under a voidable title
Section 29: When a buyer purchases goods in good faith and without knowledge of the seller's title defect, he receives a good title to the items even when the seller gained possession of them via a voidable contract that hasn't been avoided at the time of the sale.
Sale by a seller in possession after sale
Section 30(1): deals with the situation where a seller continues to possess the goods (or the title to the goods) after the buyer has acquired the property interest in them and the seller then sells the same items to another customer.
The seller may transfer a good title to the second bidder if he acts in good faith and does not know about the prior transaction.
The initial buyer would lose ownership and would need to take legal action against the vendor.
Sale by a buyer in possession
Section 30(2): explains what to do when a buyer obtains ownership of a property but it has not yet passed to him.
After making a purchase or agreeing to make a purchase, the buyer may transfer ownership of the items to an innocent third party under any sale, pledge, or other disposition if he does so with the seller's permission.
Case: Newtons of Wembley Ltd v Williams (1965)