Bona Fide Purchaser


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Bona Fide Purchaser

 

in civil law, a person who has acquired property without knowing that the person from whom he has acquired it did not have the right to sell, give, or exchange it. The sale of stolen or found goods, in particular, is unlawful. The bona fide purchaser is the person who not only did not know but also should not have known and could not have known of the unlawfulness of his acquisition. This means that when acquiring a particular article one must exercise caution; for example, the acquisition of an article at too low a price under suspicious circumstances may serve as the basis for concluding that the purchaser, although he did not know for certain, could have and should have assumed that he was acquiring a stolen article. A purchaser who knew or should have known of the unlawfulness of the transaction is recognized as a bad-faith purchaser.

Good faith in acquisition is very important in the recovery by an owner of property in the unlawful possession of another person; for example, in Soviet civil law money and securities may not be recovered from a bona fide purchaser. If property has been purchased for value by a bona fide purchaser, the owner may recover his property from the purchaser only in cases that are strictly defined by law (Civil Code of the RSFSR, arts. 152 and 153).

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The justice then considered those sections of the Act where there were express references to 'any bona fide purchaser for value', (12) 'transfer for valuable consideration', (13) and 'disposition for valuable consideration', (14) and concluded that these express references extended to the whole statute and as a consequence, the purpose of the statute was not to confer indefeasible and paramount title on mere volunteers who had become registered as proprietors.
Routine title defects: The trustee as bona fide purchaser and lien creditor
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As you have been aware, since 2002 we have been embroiled in litigation with Kevin Harmon, a plaintiff, who has claimed, among other things, that InnoMed had misappropriated the rights to, and was not a bona fide purchaser of, the patents pertaining to the so-called Nasal Aire sleep apnea device when InnoMed acquired such patents as part of an asset purchase in April 2001.
While we strongly opposed the undervalued and coercive offer approved by the former Board, we are confident the new Board would consider any offer made by a bona fide purchaser that is fair to all shareholders from a financial point of view, in accordance with the fiduciary duties governing all board members.
A full inventory of fixtures and fittings will be made available to any bona fide purchasers.
Finally, he said Nebraska law protects bona fide purchasers from restrictive covenants when there is no notice.