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One Blenkam, knowing that Blenkarn & Co. was a reputed customers of Lindsay & Co., placed an order with Lindsay & Co. by imitating the signature of Blenkarn & Co. The goods were then sold to Cundy, an innocent buyer. A suit was filed by Lindsay & Co. against Cundy for recovery of goods. Discuss the legal position.

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Solution

Solution:
Section to which the given problem relates: Section 72.
Decision:
Cundy didn't get a good title and hence he must return the goods or make payment for the same.
Reason:
There was no contract between Lindsay & Co. and Cundy as Lindsay never intended to contract with Blenkarn.
Leading case: Cundy v. Lindsay & Co.

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