Facts
The appellant sold a motor vehicle to the respondent and transferred possession to him after hereceived the purchase price. The vehicle was later impounded by police on the ground that the motorvehicle was stolen and had a fake log book. The respondent filed suit and obtain damages amountingto the purchase price. The appellant appealed, and argued that the respondent had failed to dischargethe burden of proof to show that the vehicle was stolen.
Held – The essence of the contract of sale is transfer of the property in goods sold. Where the sellerhas no right to sell the goods sold, a fundamental condition has been broken and the buyer can recoverthe price from the seller because consideration for its payment has totally failed. This would be thecase where the vehicle turned out to be stolen. Rawland v Dival [1923] 2 KB 500 adopted.It was the duty of the appellant to prove that he was the lawful owner at the time of the sale byproviding a genuine logbook. He failed to do this and therefore breached the contract of sale.
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