Q&As

If A, in good faith, buys goods from B in circumstances where B purchased the goods from C some time ago and still owes C for them, can C demand the goods back from A in settlement of B’s debt owed to C?

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Published on LexisPSL on 01/11/2016

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • If A, in good faith, buys goods from B in circumstances where B purchased the goods from C some time ago and still owes C for them, can C demand the goods back from A in settlement of B’s debt owed to C?

In the absence of any further information, it appears in this situation that A would be deemed a bona fide purchaser for value, see Practice Note: Defences to restitutionary claims, in particular the section entitled ‘Defences to restitutionary claims — Bona fide purchaser for value defeats a restitutionary claim’.

Having conducted a comprehensive search of our resources we have been unable to locate case law on the exact point, however, in Lipkin Gorman (a firm) v Karpnale Ltd it was held that where the true owner of stolen money sought to recover it from an innocent third party in an

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