The Power to Transfer Ownership By, Mollie Dejesus & James Pierce

DoNow Brad Stole a cassette player from Fuller’s car. He then sold it to Standon, who know it was stole. Did either Brad or Standon receive good title to the cassette player?

Authorized Person Only the true owner of goods may legally transfer ownership of those goods A person may validly sell what they do not own if the owner of that good authorized them to do so. Salespeople Auctioneers Sheriffs, when they sell, under court order, stolen or repossessed goods or foreclosed property

Vocabulary Good faith purchaser- innocent third party to a fraudulent transfer of goods who gives value to the goods and acquires rights in them Existing good- physically existing goods owned by the seller Identified goods- designated subject matter of a particular sales contract Future goods- goods that are not both existing and identified Tender of delivery- to place the goods at the buyer’s disposal or to give notice to the buyer that delivery can be received

Question Chien Huang ordered electronic equipment worth more than $3 million from Inter-Continental Trades, a Seattle exporter. The equipment was to be shipped to a company in the People’s Republic of China. The sales agreement, signed by both parties, stated that titled and risk of loss would pass “when all necessary governmental permits are obtained.” The Chinese government granted an import permit and necessary clearance to allow the exchange of Chinese currency into dollars to pay for the order. However, the U.S. State Department refused to grant en export permit because of the classified nature of some of the equipment. Did a sale take place?