Case study: Locke v Austin [2017] - A fiction case based on British case law

The original owner of a Jaguar car (Locke) entrusted it to a man named Austin for repairs to be carried out.

Austin used the car for his own purposes, crashed it and caused extensive damage. Given the situation, Austin made the decision to get rid of the vehicle and sold it to Keynes, who owned a garage, for 500.

Keynes was not fully sure about Austins legal title to the car. He had noticed that Austin was nervous when proposing the car sale and urged him to close the operation as soon as possible. Keynes hesitated for a few days and considered the possibility to perform some research. But finally Keynes decided not to ask questions, as he had his own plans for the Jaguar: making money on it. So he paid the price required by Austin, spent 1000 repairing the car and sold it to a finance company.

Questions:

1. Spot the general basic rule of Property Law illustrated by this case and explain its meaning
2. Was the above rule breached by Austin? Please provide reasons for your answer
3. Was the rule violated by Keynes? Why yes or why not?
4. Is there any exception to the rule that can be applied to this case? Please state the reasons for your response
5. Finally: who does the car belong to? Should some compensation be paid to any of the individuals involved in the case?