Court case[1923] 2 KB 500

Rowland, a motor dealer, bought a car from Divall for 334 pounds, repainted it and sold it to a customer. Two months later the police seized the car: it had been stolen before Divall bought it, so neither Divall nor Rowland ever had title. Rowland refunded his customer and sued Divall for the full price he had paid.

The Court of Appeal held that the seller was in breach of the implied condition that he had a right to sell. The buyer had paid for ownership and received nothing of what he bargained for; the mere use of the car was not what he contracted to get. There was a total failure of consideration and the buyer could recover the whole price without any deduction for the use of the car. Nor could he be said to have 'accepted' the goods so as to be confined to damages, since a person cannot accept what the seller had no right to give.