conversion
Conversion is an intentional act of dealing with goods that is inconsistent with the owner's right to possess them. The defendant need not intend to wrong the owner or know of his title; an innocent buyer from a thief who resells the goods is liable. The usual remedy is damages equal to the value of the goods.
Distinguish detinue, which is wrongful detention of goods after the owner's demand, where the remedy can be return of the goods. Distinguish trespass to goods, which is direct interference with possession. In India, recovery of specific movable property is governed by ss.7 and 8 of the Specific Relief Act, 1963. The criminal law counterpart is criminal misappropriation.
Example
The warehouse keeper who sold the stored rice without the owner's consent is liable in conversion, even if he honestly believed he had authority.
In Indian law
- Hollins v. Fowler (House of Lords, 1875): innocent dealing inconsistent with the owner's title is conversion
- Sections 7 and 8, Specific Relief Act, 1963 (recovery of specific movable property)
See also
detinue · trespass · criminal misappropriation · movable property
Read more in the study notes
- Arbitration: meaning, kinds and salient features of the 1996 Act (Alternative Dispute Resolution Systems)
- Arbitrators: qualities, appointment, challenge and substitution (Alternative Dispute Resolution Systems)
- Conciliation under industrial, family and marriage laws (Alternative Dispute Resolution Systems)
- Bank: definition, kinds of banks and their functions (Banking Law)
- Negotiation, endorsement, assignment and presentment (Banking Law)
- Paying banker, collecting banker and crossing of cheques (Banking Law)