Cases and Legislation on the Nemo Dat rule and its exceptions. The cases include relevant notes, primarily focusing on the ratio with diagrams where necessary to aid learning. Excellent for quickly learning all cases before exams.
Nemo Dat
S21 SGA 1979
What it says No one may transfer what they do not own (subject to the exceptions) as B
acquires no better title to the goods than S
Notes Problem = ‘where goods are sold’ – there must be a CONTRACT OF SALE (not
agreement to sell) – see Shaw (exception 1)
Problem = ‘consent of the owner’ – agent can still tell someone to sell goods
Cundy v Lindsay
Legal Principle S21
Fact Man impersonated a well known brand with the same name in the same street –
ordered linen cheaply, then sold it on to 3rd party who purchased it in good faith,
thinking it was of the brand
Ratio Held – there was no good title to pass, therefore the contract was void
Must be able to show there’s a contract between S1 and B1, otherwise B2 has
no rights to the goods and therefore can’t sell to 3rd party
Jerome v Bentley
Legal Principle S21
Facts S said to B1 that if he could sell a ring within 7 days for over £550, he could keep
anything over that amount for himself
12 days later – B1 sold to B2 for £175, with B2 buying in good faith
Ratio B1 stole the ring as bailee – he intended to fraudulently take them ring and sell it
on
Held – NO property passed, and there is nothing to prevent S1 obtaining title to
them
First exception – Consent of owner
S47(1) SGA
What it says B who is not in possession resells the goods and S assents, B2 obtains good title
from S’s lien or right of stoppage in transit
Stoppage is similar to estoppel, but estoppel needs to be communicated to B2,
whereas S under s47(1) may assent to resale by only communicating his assent
to B1
Mordaunt Bros
Legal Principle Consent of owner
Facts S1 sold to B1, who sold to B2 – B1 said S1 to just deliver to B2 (B1 hadn’t paid)
Ratio Held – NO consent - but because S1 had consented to sale, they have to fulfil
obligations and deliver to B2
Just logging something is NOT consent to sale
DF Mount
Legal Principle Consent of owner
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