Commercial Law - Case Study
This case refers to the implied condition under the sale of goods act. The act states that should the buyer's title be avoided by reason of the fact that the seller had no title to the goods transferred, the buyer is entitled to a refund from the seller of any money paid to the seller from the good, notwithstanding that the buyer may have had temporary use or enjoyment of them (Turner 2003, p279). Before Jim knew this guitar was stolen from somebody, he was entitled to the goods. But as he was told the truth, he should return the guitar to the owner. This is because in the case of a contract for the sale of goods the main purpose of the contract is to transfer the title to goods (Turner 2003, p280). Since the seller has no title, there has been a total failure of consideration.
The issues of Gilbert's life stories and jack's idea all refer to the copyright.
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