Hi
There is an interesting issue regarding the 'sale' of weights in the situation described above. Maybe someone with legal knowledge can tell me whether my understanding (set out below) is correct under the law of England and Wales ( Sale of Goods Act 1979 and other relevant legislation), which would apply, for example, to the sale of Sweetbriar Gallery?
If weights are consigned by an owner (the original owner) for sale to a dealer (dealer 1), there will be a contract with dealer 1 (whether written or oral), and if dealer 1 'sells' them to someone else in accordance with that contract, then title can be transferred to the purchaser, and the purchaser owns them. Dealer 1 then owes the original owner whatever was agreed.
If dealer 1 transfers the items to another dealer (dealer 2) without the original owner's agreement, then there is no contract between the original owner and dealer 2, so dealer 2 cannot 'sell' the item, because title cannot transfer as there is no agreement to do so. So any 'sale' of the item by dealer 2 is illusory: the purchaser will have paid money for items that they cannot legally own, and the original owner can recover them. (Somewhat similar to the position with stolen goods: possession does not equate to ownership). The 'buyer' would have to recover the money that they had paid from dealer 2. It does not matter whether dealer 2 obtained the items 'in good faith' or not: title was not transferred to dealer 2 from the original owner unless dealer 2 bought the items in accordance with the terms of the contract between dealer 1 and the original owner, in which case dealer 1 should have paid the original owner.
If dealer 1 sold his business as a going concern to dealer 2, so that dealer 2 became the major shareholder and responsible for the assets, debts, contracts and other aspects of the business of dealer 1, then the contracts would automatically transfer to dealer 2. But if dealer 2 bought various assets from dealer 1, but not the whole business, then the contracts between consignors and dealer 1 could not transfer to dealer 2. In order for dealer 2 to sell items legally, with appropriate transfer of title, dealer 2 would need to agree new contracts with each consignor.
Is that correct?
Alan