The scenario raises a conflict between two large interests. A balance has
to be struck between O’s ownership interest and B’s commercial interest.5
Both need protection: There will be little order in society if title to property
is not protected against theft; on the other hand, business can thrive only
in an environment where there is some measure of security in commercial
transactions. The starting point of the law has always been to uphold
ownership interest at the expense of commercial interest. That starting
point is embedded in the ancient maxim nemo dat quod non habet. It is
also found in section 21(1) of the Sale of Goods Act,6 which provides:
‘Subject to this Act, where goods are sold by a person who is not their
owner...the buyer acquires no better title to the goods than the seller had....’
There are exceptions to this rule. The better known exceptions7 are