Work out who will own the goods in the following examples:

(i) A has agreed that B can borrow his bicycle while A goes on a month’s holiday. Without permission or authority, B sells the bicycle to C, who believes that B is the owner of the bicycle. A did not know B well and made no attempt to check whether or not he was honest.

(ii) D buys a car from a garage, deliberately paying with a bad cheque. The following day the garage owner discovers that the cheque has bounced and tells the police and the AA to look out for the car. One week later D sells the car to E, an innocent purchaser who pays a reasonable price for the car.

(iii) F has taken a car on hire-purchase from a finance company. F sells the car to G, a dealer in cars who does not know that the car is the subject of a hire-purchase agreement. G sells the car to H, another dealer in cars. I, a carpenter, buys the car from H in good faith and then sells it on to J.

(iv) An art dealer who often sells paintings on behalf of clients is asked to renovate a painting by K, so that K can sell it at auction. L visits the art dealer’s shop while the art dealer is having his lunch and the art dealer’s shop assistant sells the painting to L.

(v) N visits an art dealer’s shop and examines a painting for some considerable time. Later N phones the shop and makes a definite agreement to buy the painting for £2,000. The dealer is to deliver the painting to N’s house the following day. Later, by mistake, a shop assistant sells the same painting to O, who takes it away.

(vi) P buys a machine from Q for £4,000. Ownership is not to pass to P until the full price has been paid. P takes possession of the machine and, without Q’s permission or knowledge, sells the machine to R. P has now become insolvent.

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