In 2008, Mickey, the registered proprietor of a two-storey shop house, contracted to grant a 10-year lease of the ground floor to Donald to run an Indian cuisine restaurant business. Even though the contract required Mickey to execute a lease instrument for the purpose of registering a lease, the parties delayed over the matter. Meanwhile Donald entered and took possession of the premises. Last year, Mickey contracted to sell the whole shop house to Pluto. As Mickey did not engage the service of a lawyer, they (Mickey and Pluto) decided to appoint Pluto's solicitor as the stakeholder in the transaction. Pluto paid the full purchase price to the solicitor. The transfer was registered. Most unfortunate for them, the solicitor absconded with the purchase money and could not be traced.

Required 

Who, in between Mickey and Pluto, has to bear the loss caused by the misdeed of the solicitor?

Answer rating: 100% (QA)

Solution The loss caused by the misdeed of the solicitor should be borne by Pluto As Pluto paid the ... View the full answer