The Nemo Dat Rule Essay Example | Topics and Well Written Essays - 2000 words

The Nemo Dat Rule - Essay Example All in all, the main purpose of any purchase is to have the transfer of the given good from the seller to the buyer (Akseli 2000, p.21). In accordance to the case of Rohit Kulkarni  v.  Manor Credit (Davenham) Ltd, we get to see the application of the sales in goods act and the hire purchase Act. In the case, Manor credit sold a Mercedes car to Gwent via hire purchase terms. When Dr. Kulkarni approached Gwent, it sold to the doctor the car. Later on, when Gwent failed to pay as per the hire purchase agreement, Manor decides to repossess the car. The doctor is then left without a car and no refund (Crosling 2000, p.83). Therefore, Dr. Kulkarni takes Manor Credit to court to have refund of his money. A lot of decisions come in place in this case to decide who the rightful winner of the case is (Clarke 2005, p.63). In addition, there have been several cases like this that have been in court and different ruling made leaving many to argue if nemo dat rule is an efficient law to be us ed in the legal system. From the above case, Dr. Kulkarni wanted refund for the car which he had bought from Gwent, but according to the law, Gwent was not the sole owner of that property (Bar 2011, p.63). Since sale of property involves the transfer of commodity from one owner to the other, since Gwent did not have the rightful papers to prove they were the owners of the car, Dr. Kulkarni is left disadvantaged. In accordance to hire purchase act, the owner of the given commodity can repossess the commodity when the buyer has not paid nine tenths of the price agreed upon hire purchase (Clarke 2005, p.54). This law proves unfair in this case since an individual would have already paid money worth more than even the cash price of a given commodity and the owner repossess (Hoffman 2006, p.161). Though the hire purchase act, advocates for that, its innocent victims who would have lost their money and time buying that commodity. Such a law should either be abolished or changed so as not to belittle the innocent ones in the society. Since the owner of a given commodity is the one regarded as the one who has the rightful details to be the owner, take for instance in the above case, the owner is Manor credit (Connolly 2000, p.67). The nemo dat rule is also a good rule when view from the business point of view. Imagine the business person had invested his money in dealing in the hire purchase business and may be having debts and loans to repay, for a given customer to default payment indicate that the given business will be the verge of making laws. Hence by the ninth tenth rule applying is a way of making businesses not to enter into situations that they make loses (Gillies 2000, p. 78). It is hence disadvantageous to the customer who had the product since he or she would not be compensated by the business person (Luisa 2003, p.73). Such a law should be changed so that in the event that the owner repossesses his or her product, then the customer should have way of not coming out of the agreement worse than he or she entered. Such a law is only disadvantageous to the business people and disadvantageous to the customers. The given business person can be able to repossess and resell the given commodity and still get his or her money while the customer succumbs his or her loses (Howells 2006, p.45). In continuing to analyze the Nema dat rule, the doctor in the above case may have been favored by the ruling that stated that he might have been repaid if the commodity in question was