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Sales - What Constitutes Notice Of Defective Title

Michigan Law Review

A retail dealer in automobiles sold to the plaintiff a new and unregistered automobile. This car had previously been sold by the dealer to a third person, under a conditional sale agreement. This contract the dealer assigned to the plaintiff who recorded it, together with the assignment. Neither the conditional vendor nor the plaintiff took possession of the car which was left in the dealer's possession. Thereafter the dealer sold it to the defendant who purchased for value and without actual notice and took possession. The plaintiff sought to recover the car in an action of replevin. Held, the …