May 2019 Q5
Yaa Konadu purchased a car from Kofi Apenteng, two months later, it was discovered that the car was a stolen property before it was acquired by Apenteng and both parties were innocent. Konadu had to give back the car through the police. Apenteng had no title to pass on and so Konadu sued him for the refund of the whole of her money despite the fact that she had used the car for two months.
Required:
a) Explain if the object of the sale of the car was met for either Yaa Konadu or Kofi Apenteng. (4 marks)
View Solution
The object of a sale of goods is to transfer the property from the seller to the buyer.
No property had been transferred to any of the parties.
Section 1 (I) of Act 137 states that:
“1 (1) A contract of Sale of Goods is a contract whereby the seller agrees to transfer the property in goods to the buyer for a consideration called the price, consisting wholly or partly of money.”
A combined reading of section 1 (I) and section 18 of Act 137 gives us a mandatory and essential requirements in every contract of sale of goods; that is, the seller must have agreed (with the buyer) to transfer ownership or title to the goods to the buyer.
b) Advise the parties. (6 marks)
View Solution
Advice to Konadu –
Under Section 8 of the Sale of Goods Act, 1962 (Act 137), the fundamental obligation of the seller is to deliver goods to the buyer after sale of specific goods. Where the goods agreed are specific goods, the seller must deliver them as agreed. Under Section 15 of the Sale of Goods Act, 1962 (Act 137), the seller must be ready and willing to deliver the goods in exchange for the price unless agreed otherwise by the parties.
But, in this case, there was total failure of consideration from Apenteng and Konadu was entitled to her money back. She was also entitled to damages for breach of condition.
Advice to Apenteng –
No one gives a better title to property than he himself possess, hence the maxim, nemo dat que non habet (meaning no one gives who does not have). But the general rule is also that ‘Let the buyer beware’, He failed to confirm the legal ownership and equitably, he must make arrangements to repay Konadu her entitlements. Thereafter, he may sue the source from which he obtained the vehicle to demand his money back.