Efforts to Locate the Owner of Goods and Confer Good Title

To determine whether a finder of goods has the power to sell the goods and give good title to the buyer, the level of diligence exercised in locating the owner becomes crucial. Different levels of diligence can be applied, ranging from ordinary diligence to due diligence. Let's explore each level and its implications:

a) Ordinary Diligence:
If the finder employs ordinary diligence but cannot locate the owner of the goods, they do not have the power to sell the goods and give good title to the buyer. Ordinary diligence refers to the level of effort that a reasonable person would normally make in attempting to find the owner. However, this level of effort may not be sufficient to meet the legal requirements in terms of locating the owner.

b) Reasonable Diligence:
When the finder goes beyond ordinary diligence and exercises reasonable diligence in searching for the owner, they may be able to sell the goods and give good title to the buyer. Reasonable diligence implies a higher level of effort than ordinary diligence and requires the finder to take additional steps to locate the owner. This may include conducting thorough research, contacting relevant authorities, posting notices, or engaging in other reasonable actions to find the owner.

c) Lack of Diligence:
If the finder exhibits a lack of diligence in attempting to locate the owner of the goods, they do not possess the power to sell the goods and give good title to the buyer. A lack of diligence refers to a failure on the part of the finder to make any reasonable effort to find the owner. This lack of effort may be deemed insufficient and unjustifiable, thereby negating the finder's ability to confer good title.

d) Due Diligence:
The highest level of diligence that a finder can exercise is due diligence. When the finder employs due diligence and exhausts all reasonable efforts to locate the owner, they can sell the goods and give good title to the buyer. Due diligence requires the finder to take every possible step within reason to find the owner, including employing professional assistance, utilizing advanced search methods, and exploring all available resources.

In conclusion, the ability of a finder of goods to sell the goods and give good title to the buyer depends on the level of diligence applied in locating the owner. While ordinary diligence is usually insufficient, reasonable diligence, lack of diligence, and due diligence can significantly impact the finder's authority to confer good title.