Macleod v Kerr [1965] ScotCS CSIH_2 (14 May 1965)

Macleod v Kerr [1965] ScotCS CSIH_2 (14 May 1965)

The car was obtained by fraud, not theft; the contract of sale between Kerr and Galloway was voidable, not void, and was not rescinded before Galloway sold the car to Gibson, a bona fide purchaser for value. Therefore, Gibson acquired good title to the car.

Citation
[1965] ScotCS CSIH_2
Parties
Real Raiser (original Owner): Peter Kerr; Defender (purchaser in Good Faith): George Gibson; Fraudulent Intermediary: Galloway (alias L. Craig)
Jurisdiction
Scotland
Judgment Date
14 May 1965
Procedural Posture
Multiplepoinding / Appeal Against Sheriff Substitute's Interlocutor
Outcome
Appeal sustained; interlocutor of Sheriff-substitute reversed.
Legal Topics
Transfer of Property, Fraudulent Misrepresentation, Voidable Contracts, Bona Fide Purchaser, Rescission of Contract
Property Law Contract Law Sale of Goods Transfer of Property Fraudulent Misrepresentation Voidable Contracts Bona Fide Purchaser Rescission of Contract

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Parties

Peter Kerr

Real Raiser (original Owner)

George Gibson

Defender (purchaser in Good Faith)

Galloway (alias L. Craig)

Fraudulent Intermediary

Procedural Posture

Multiplepoinding / Appeal Against Sheriff Substitute's Interlocutor

Legal Issues

  1. 1 Whether the car was stolen or obtained by fraud
  2. 2 Whether the contract of sale was void or voidable
  3. 3 Whether Mr Gibson acquired good title as a bona fide purchaser

Ratio Decidendi

The car was obtained by fraud, not theft; the contract of sale between Kerr and Galloway was voidable, not void, and was not rescinded before Galloway sold the car to Gibson, a bona fide purchaser for value. Therefore, Gibson acquired good title to the car.

Court Disposition

Appeal sustained; interlocutor of Sheriff-substitute reversed.

Orders

  • Gibson's claim to be ranked and preferred to the car sustained.
  • Ownership of the car vested in Gibson.