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In this case, A sells to B tins of condensed milk labelled ‘C.D.F. brand’, which is an infringement of N Company’s trade mark. This means that A does not have a good title to the goods and he has no right to sell them to B. Therefore, A has breached the implied condition of title and B can reject the goods or take off the labels, and claim damages for the reduced value. If the true owner of the trade mark, N Company, sues B for infringement and B has to make over the goods to N Company, B will be entitled to refund of the price from A.
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