Bona Fide Purchaser in UK Law

Leading Cases
  • Foskett v McKeown
    • House of Lords
    • 24 May 2000

    If, as a result of tracing, it can be said that certain of the policy moneys are what now represent part of the assets subject to the trusts of the purchasers trust deed, then as a matter of English property law the purchasers have an absolute interest in such moneys. There is no room for any consideration whether, in the circumstances of this particular case, it is in a moral sense "equitable" for the purchasers to be so entitled.

    Following is the process of following the same asset as it moves from hand to hand. Tracing is the process of identifying a new asset as the substitute for the old. Where one asset is exchanged for another, a claimant can elect whether to follow the original asset into the hands of the new owner or to trace its value into the new asset in the hands of the same owner.

    It is merely the process by which a claimant demonstrates what has happened to his property, identifies its proceeds and the persons who have handled or received them, and justifies his claim that the proceeds can properly be regarded as representing his property. It identifies the traceable proceeds of the claimant's property. It enables the claimant to substitute the traceable proceeds for the original asset as the subject matter of his claim.

    Both remedies are proprietary and depend on successfully tracing the trust property into its proceeds. A beneficiary's claim against a trustee for breach of trust is a personal claim. It does not entitle him to priority over the trustee's general creditors unless he can trace the trust property into its product and establish a proprietary interest in the proceeds.

  • Independent Trustee Services Ltd v GP Noble Trustees Ltd
    • Court of Appeal (Civil Division)
    • 28 Feb 2012

    Despite that inability, the availability of the bona fide purchaser defence means that a transaction in favour of a bona fide purchaser for value without notice is as effective as it would be if he could vest the beneficial title in the purchaser.

  • Credit Agricole Corporation and Investment Bank v Papadimitriou
    • Privy Council
    • 24 Mar 2015

    The rule is that the defendant in this position cannot say that there might well have been an honest explanation, if he has not made the inquiries suggested by the facts at his disposal with a view to ascertaining whether there really is.

  • Goddard v Nationwide Building Society
    • Court of Appeal (Civil Division)
    • 27 Jun 1986

    Thirdly, the right of the party who desires the protection to invoke the equitable jurisdiction does not in any way depend on the conduct of the third party into whose possession the record of the confidential communication has come. It is directly in point in the present case and our decision necessarily affirms it.

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Legislation
  • Legal Practitioners (Ireland) Act 1876
    • UK Non-devolved
    • 1 de Enero de 1876
    ...... such charge or right shall, unless made to a bona fide purchaser for value without notice, be ......
  • Land Registration Act 2002
    • UK Non-devolved
    • 1 de Enero de 2002
    ......(6) and 238 of that Act (under which a purchaser in good faith for money or money's worth takes ...S-85 . Bona vacantia 85 Bona vacantia . . Rules may make ... Insolvency Act 1986 which protects a bona fide . purchaser for value without notice. . ......
  • Finance Act 1920
    • UK Non-devolved
    • 1 de Enero de 1920
    ......transferred by him to a bona fide purchaser, and. what part, if any, of the ......
  • Finance Act 1940
    • UK Non-devolved
    • 1 de Enero de 1940
    ......was bona fide effected or suffered three years before. the ...) any person (other than a bona fide purchaser for. full consideration in money or money's ......
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Books & Journal Articles
  • The Misguided Quest: The Clear Case against UNIDROIT
    • Núm. 4-1, Marzo 1996
    • Journal of Financial Crime
    • 54-59
    The purpose of this article is to give a perspective on the latest attempt, via a multinational agreement, to limit and control the international trade in cultural artifacts. The scope of the propo...
    ...... provid e greate r deferenc e t o purchasers ' right s ove r possessor' s rights . Rather ... I t order s tha t a bona fide purchase r mus t giv e u p hi s stole ......
  • Payment of Pecuniary Legacies
    • Núm. 18-6, Noviembre 1955
    • The Modern Law Review
    ...... impregnable position of a legal bona fide purchaser. As it is, the conception ......
  • Tracing Money through Art Transactions
    • Núm. 5-1, Marzo 1997
    • Journal of Financial Crime
    • 44-50
    ‘Tracing’ is the means by which a person who has been wrongly deprived of a thing attempts to identify and follow that thing, or its substitute in value, into the hands of other persons to whom the...
    ...... y see k it s retur n fro m th e purchaser , fo r exampl e i n a n actio n fo r ... Bona fide purchaser for value no defence ......
  • TRACING ASSETS: A CASK FOR THE FUSION OF COMMON LAW AND EQUITY IN ENGLISH LAW*
    • Núm. 34-1, Enero 1971
    • The Modern Law Review
    ...... relationship in equity; the rights of bona fide purchasers and, finally, the rights ......
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Law Firm Commentaries
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