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- 6 Marks
Question
Orlando Motors, an American Automobile Company, paid for three (3) cars and consigned them to Mr. Kobby Ayensu in Ghana by a bill of lading; vehicle No. GTB 7084 was one of the three (3) cars. Mr. Kobby Ayensu, as the consignee, took delivery of the vehicles and registered vehicle No. GTB 7084. He later sold the vehicle he registered to Tracy Achiaa. The appropriate change of ownership was then effected. Later, one Mr. Oko Lartey who was claiming interest in the cars, sued Mr. Kobby Ayensu in respect of the cars and immediately went to court and obtained an order resulting in the impounding of the vehicle from Tracy Achiaa.
Required:
Explain whether there is any legal basis for Tracy Achiaa to take action to recover the impounded vehicle.
Answer
There is a legal basis for Tracy Achiaa to take action to recover the impounded vehicle:
- Tracy Achiaa was a bona fide purchaser for value without notice under the provisions of the Sale of Goods Act, 1962 (Act 137), and, therefore, had a legal interest in the vehicle. By the provisions of Section 26 of Act 137, property in the vehicle had passed to her.
- Even if under an agreement between Mr. Oko and Mr. Kobby Ayensu, Mr. Ayensu could be regarded as a mere agent of Mr. Oko, and as a mercantile agent in possession, Mr. Ayensu could, under Section 30 of Act 137, validly dispose of the vehicle to Tracy Achiaa.
- The vehicle was shipped to Mr. Kobby Ayensu by Orlando Motors Ltd. as consignor, and Mr. Kobby Ayensu as consignee. By the bill of lading, Mr. Kobby Ayensu was the owner of the vehicle, as proclaimed to the whole world, and therefore, Tracy Achiaa validly acquired the vehicle from Mr. Ayensu under a contract of sale, which passed on valid title in the vehicle to her. Tracy Achiaa is, therefore, protected, on the face of it all, by Act 137.
(3 points at 2 marks each = 6 marks)
- Tags: Bona Fide Purchaser, Ghana, Legal Action, Sale of Goods
- Level: Level 1
- Topic: Sale of goods/hire purchase
- Series: NOV 2016
- Uploader: Dotse