The proprietary consequences of fraud

Book section

Suppose A is fraudulently induced to transfer rights to B. B, for example, knocks on A’s door falsely representing that they are collecting for charity; in truth, they believe that charity begins at home. If A hands over a £50 note, they will obviously have claims for compensatory damages against B in the tort of deceit and, alternatively, to be paid the value of their performance in unjust enrichment. Both are necessarily personal claims. But what are the ‘proprietary’ consequences of the handing over of the note? Does A’s right pass to B? If so, does B immediately hold that right on trust for A? Alternatively, can A revest the right in themselves by unilaterally rescinding the transfer or obtaining an order of the court to that effect? Similar questions arise in reverse, where A is fraudulently induced to take a transfer of rights from B. B, for example, may have sold a title to a fake Picasso painting to A, and A is now seeking to recover the purchase price....

Authors: Swadling, W

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Hart Publishing
• Host title: Fraud and Risk in Commercial Law
• Pages: 169-196
• Chapter number: 9
• Place of publication: Oxford
• Publication date: 2024-07-30
• Acceptance date: 2024-03-04
• Edition: 1
• DOI: 10.5040/9781509970780.ch-009
• EISBN: 9781509970780
• ISBN: 9781509970759
• Language: English