Rowland v. Divall (1923)

Contract II (Special Contracts) · Sale of Goods

Facts.

The plaintiff bought a car from the defendant and used it for several months, only to discover the car was stolen and had to be returned to the true owner. He sued to recover the whole price he had paid.

Issue.

Where the seller had no right to sell (breach of the implied condition as to title), can the buyer recover the entire price despite having used the goods?

Held.

Yes. There was a total failure of consideration — the buyer never got the ownership he bargained for. He could recover the full price; the use he had in the meantime did not reduce it.

Why it matters.

It is the leading authority on the implied condition as to title (s.14(a)) and shows how seriously the law treats a defect of title.

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