I post on behalf of Greg Tolhurst:

1.  Assume A hires goods to B to be used in B’s business run from premises leased from C.
2. The contract of hire states that if B fails to pay A on time, or gives up possession of A’s goods, then A may terminate and retake possession.
3. B goes broke and leaves C’s premises with A’s goods there.
4. Before A finds out, C leases the premises with A’s goods intact, to D.

Questions:

(a) Is C liable in conversion?

(b) Is there any defence for C? eg can C argue ius tertii, ie that A did not have immediate right to possession when C took over premises, because A had not at that time sought possession from B?

GREG TOLHURST | Pro-Dean and Professor of Commercial Law
Faculty of Law

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Executive Assistant - Sandie Tolliday (Mon – Thurs)

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