Validity of Conditional-Sale Contracts as Affected by Express or Implied Permission to Sell in the Ordinary Course of Business

Authors

Phyllis Cavender

Abstract

Conditional sales have always been viewed with more or less disfavor by the courts, but now, in every state, with the exception of Louisiana, such a reservation of title by vendor is valid as against the bona fide purchasers and creditors of the conditional vendee, if there has been sufficient compliance with the recording laws that may exist. The question to be herein considered is whether that general rule is in any way modified where the goods are purchased for the purpose of resale. This is a problem of practical significance to the business world in that it involves the question whether one may safely purchase property from a dealer in such property without first making an investigation as to his title. The weight of authority and better reasoning supports the view that this authority to the vendee to sell the property purchased by the conditional sale does not m any way affect the character of the contract, and, as between the original parties the contract is valid. The following will be a discussion, first, as to the validity of this authority to resell with respect to purchasers from the conditional vendee, and second, as to its validity with respect to creditors.

First Page

65

Recommended Citation

Phyllis Cavender, Notes and Comments, Validity of Conditional-Sale Contracts as Affected by Express or Implied Permission to Sell in the Ordinary Course of Business, 5 Wash. L. Rev. 65 (1930).
Available at: https://digitalcommons.law.uw.edu/wlr/vol5/iss2/3