Stewart is a dealer in new and used watches. Stewart borrows his neighbor Philip's golf clubs for a local tournament. At the tournament, Stewart does very poorly and Jerry comes up to him and says:

"Stewart, you must be frustrated! However, I note that you have very lovely golf clubs, will you sell them to me at $ 2,000?"

Stewart accepts and hands Jerry the golf clubs. Jerry gives Stewart $ 2,000.--.

When Philip finds out what has happened, he goes to Jerry and demands his golf clubs back. Jerry says:

"I don't have to give them back, I bought them from a merchant! I honestly believed that the golf clubs belonged to Stewart."

Philip sues Jerry to get his golf clubs back - please discuss!