1. Essentials Of Business Law Chapter 14 Transfer Of Title McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. Essentials of Business LawChapter 14-2 Right Of Ownership The laws of our country recognize the right of individuals to own property Title relating to property is intangible  Title give the owner the right to possess it Sale of property  Owner’s sell not only the property but also the intangible right of ownership called title Certificate of title  Is not title but rather proof of title A department store bill of sale can be used as proof of ownership

3. Essentials of Business LawChapter 14-3 Kinds Of Property Real property  Land and all articles permanently attached to it Personal property  All property other than real property  Can be tangible or intangible The Uniform Commercial Code only applies to personal property Real property is governed by a separate branch of law

4. Essentials of Business LawChapter 14-4 Bill Of Sale A written statement that the seller is passing ownership to the buyer The description of the goods should be as complete as possible

5. Essentials of Business LawChapter 14-5 Bill Of Lading A receipt for goods to be shipped  Acknowledges that such goods have been received  Indicates agreement that the goods will be transported to the destination specified Prepared by the common carrier  Trucking firm, a railroad, or an ocean liner An airbill is prepared for goods shipped by air The document is signed by the common carrier upon acceptance of the goods for shipment

6. Essentials of Business LawChapter 14-6 Bill Of Lading Two kinds of bills of lading  Straight bill of lading A receipt that is not negotiable  Order bill of lading A receipt that is negotiable Proof of title and can be used to transfer title from one person to another Covered by Article 7 of the UCC

7. Essentials of Business LawChapter 14-7 Warehouse Receipt Goods involved are being stored Two kinds of warehouse receipts  Nonnegotiable warehouse receipt A receipt that is not negotiable  Negotiable warehouse receipt A receipt that is negotiable Proof of title and can be used to transfer title from one person to another

8. Essentials of Business LawChapter 14-8 When Title Passes Intent  When the parties intend for it to pass Specific time  When the parties unconditionally agree to sell specific goods that are in a deliverable state

9. Essentials of Business LawChapter 14-9 Conditional Sale Contract provisions that specify conditions that must be met by one of the parties  Title does not generally pass until these conditions are met Two types of conditions found in contract  Conditions precedent Specific conditions must be met before title passes  Conditions subsequent Specific conditions must be met after title has passed

10. Essentials of Business LawChapter 14-10 Stolen And Lost Goods A thief has no title to goods he or she has stolen  Cannot pass title to anyone else  An innocent purchaser of stolen items would have to return them to the original owner A person who finds an article has good title against anyone except the true owner  Those purchasing found items must be prepared to surrender the articles to the true owner  Proving ownership of a lost article can be difficult It is recommended to retain receipts with model and serial numbers of valuable personal property

11. Essentials of Business LawChapter 14-11 Transfer Of Title By Estoppel Estoppel  A legal bar to the use of contradictory words or acts in asserting a claim against another  The title holder is legally prevented from claiming ownership of the property

12. Essentials of Business LawChapter 14-12 Transfer Of Title By Estoppel For title to pass by estoppel, the purchaser must be able to prove:  The purchase was made in good faith Buyer believes the seller is the real owner or one appointed to act for the real owner  The purchase was made from one in rightful possession  Value was given by the buyer for that which he or she now claims ownership

13. Essentials of Business LawChapter 14-13 Examples Of Estoppel Transfer of money or commercial paper made out to bearer Transfer of property to a seller dealing in the same type of goods Transfer of property to a seller permitted to appear as the real owner Transfer of proof of ownership to an unauthorized seller

14. Essentials of Business LawChapter 14-14 Transfer Of Title To Fungible Goods Goods that are sold by weight or measure  Wheat, sugar, flour, gasoline, oil The following rules apply to determine when title to fungible goods passes  If goods are ordered without specifying the location from which they are to come Title passes when the goods become clearly identifiable  If a buyer orders a specific quantity of fungible goods from a specific mass Title passes at once, before the portion ordered is separated from the rest The buyer acquires immediate title to an undivided share of the specific mass because the units of oil are all the same