TORT LAW — Detinue — Constructive Bailment Arising from Retention of Goods After Sale
Principle Statement
When ownership passed to the plaintiff, what remained with the defendant was bare possession. That possession was to come to an end when the defendant procured an alternative generator. Clearly, there was a constructive bailment contract between the parties.
Ratio Decidendi (Source)
Per Oguntade, JSC, in Martchem Industries Nigeria Ltd v. M.F. Kent West Africa Ltd (2005) NLC-1142000(SC) at p. 15; Paras B–D.
Ratio Decidendi (Source):"When the plaintiff/appellant had paid for the goods and taken delivery of part of them, ownership and possession of the goods in respect of those the plaintiff/appellant took delivery of passed to the plaintiff/appellant. In respect of the 50KVA generator, ownership similarly passed to the plaintiff/appellant. What remained with the defendant/respondent thereafter was a bare possession. That possession was to come to an end when the defendant/respondent procure an alternative generator. Clearly therefore, there was a constructive bailment contract between the parties."
Explanation / Scope
Constructive bailment arises where a seller retains possession after ownership has passed to the buyer. The bailee must deliver goods upon demand or agreed condition. The principle applies to detinue and bailment.
