Tando Motors (Pty) Ltd sells and delivers a motor vehicle to Oxford, a car dealer, with the knowledge that Oxford will display the vehicle at his Sandton showroom. In terms of the sale agreement, ownership of the vehicle will not be transferred to Oxford until he has paid the full purchase price to Tando Motors (Pty) Ltd. Oxford pays the purchase price with a postdated cheque. Subsequently, Oxford sells the vehicle to Mr Bruno, who pays the purchase price to Oxford. Oxford delivers the vehicle to Mr Bruno. However, Mr Bruno insists on being supplied with a letter of assurance, which Oxford duly does. The cheque that Oxford gave to Tando Motors (Pty) Ltd is subsequently dishonoured.

 

1. What action would you advise Tando Motors (Pty) Ltd to institute against Mr Bruno, in order to retrieve the motor vehicle, and do you think that Tando Motors (Pty) Ltd would succeed in the action? Your answer should make reference to relevant case law and should contain a detailed consideration of any defences which Mr Bruno might raise.   [15 marks]
2. Assume that Oxford's postdated cheque was in fact honoured. Describe briefly the form of constructive delivery which would have resulted in ownership of the vehicle being transferred from Tando Motors (Pty) Ltd to Oxford.