5. Ronaldo’s acceptance of goods by Benjamin
Here arises the issue of whether Benjamin had the authority to sale the cargo to Ronaldo. It can be claimed that there are two opinions on this subject.
On the one hand Benjamin never became lawful holder of the shipment under s.19(3) of SOGA 1979 and as a result he had no right on the goods’ property. This fact and in combination with s.21(1) gives no property to Ronaldo.
On the other hand Ronaldo can rely on s.25(1), as Benjamin did not notice him regarding his previous transaction with Maurice. Benjamin got the cargo from Maurice in good faith33, which also happened with Ronaldo receiving the same Bill of Lading from Benjamin in line with the definitions given in s.2(1) & s.2(4), paying…show more content… Additionally, if we take the view that property had not passed to Benjamin, then s.39(2) also gives Maurice the right of stoppage of the goods as s.41(c) & s.44 confirm that the unpaid seller Maurice has exercisable rights on the goods. However, what confuses the case is that Benjamin had already sold the cargo to Ronaldo. If Maurice had taken action against Benjamin prior to the re-sale, then no such issue would have arisen, as the property would be an issue between these two parties which means that Maurice could exercise his aforementioned rights against him , but now a third person has the title of the goods and has nothing to do with the conflict between Benjamin and Maurice since he acted in good faith. Accordingly, under s.43(1)(b) Maurice’s rights on the cargo cease to exist, since Ronaldo lawfully obtained the bill of lading by Benjamin. In support of his statement s.47(2)(a) also provides that no lien, retention or stoppage can be exercised on the consignment.
To sum up, since the action against Benjamin was effected after Ronaldo had acquired the title of the goods, Maurice had no right on the cargo.
8. Stoppage in transit – Letter of indemnity – Non delivery of the goods
According to the definition of the transit period in s. 45(1) SOGA 1979, the goods were in transitu when the transactions between the involved parties took place.