Sales or Leases By Non-Owners

Sales or Leases By Non-Owners

Void Title: true owner gets goods back.

Voidable Title: good faith purchaser keeps goods.

Case 20.2: Memphis Hardwood v. Daniel (2000).

Entrustment rule: good faith purchaser keeps goods. 

Seller’s Retention of Sold Goods: 
good faith purchaser wins.

§ Sham transactions or preferential transfers.

Risk of Loss

ROL does not necessarily pass with title. ROL is important because of insurance concerns.

Unless agreed otherwise, ROL passes to Buyer depending on whether delivery is with or without movement of the goods.