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The Role of Authorization in Title Conflicts Involving Retention of Title Clauses: Some American Lessons

journal contribution
posted on 04.02.2015, 14:31 by Sean R. Thomas
This paper considers the lack of protection granted to purchasers of goods encumbered with retention of title clauses. In chains of transactions, disponees are only able to acquire such title that their immediate disponor had. The difficulties involved in determining the extent to which the title is encumbered is magnified as chains of transactions extend. English law fails to acknowledge the vital role of authorization in cases involving pre-existing but unknowable encumbrances. The failures of English law can be usefully contrasted with the situation in the USA. Under Article 9 of the Uniform Commercial Code, a security interest can pass with the goods upon disposition, yet if the disposition is authorized, the security interest will merely attach to the proceeds of the disposition. The final purchaser will be able to retain the goods. Although prima facie similar to English law, the American case law demonstrates that authorization plays a substantially more influential role, and reduces the risk to purchasers in comparison with English law.

History

Citation

Common Law World Review March 2014 vol. 43 no. 1 29-61

Author affiliation

/Organisation/COLLEGE OF ARTS, HUMANITIES AND LAW/School of Law

Version

VoR (Version of Record)

Published in

Common Law World Review March 2014 vol. 43 no. 1 29-61

Publisher

Vathek Publishing

issn

1473-7795

eissn

1740-5556

Available date

04/02/2015

Publisher version

http://clw.sagepub.com/content/43/1/29

Language

en