LAW

Published on
KembaraXtra-Case Law-Attorney General's Reference (No 1 of 1985)

Core Concept: Explores the application of Section 5(3) of the Theft Act 1968 in the context of obligations to account for property received.Case Facts: Defendant (D): Manager of a public house (salaried).

Obligation: Contractually bound to sell only employer's beer and remit all profits to the employer. Action: Sold beer not belonging to the employer and retained the profits.

Charge: Theft, based on the argument that the money received from customers belonged to the employer under Section 5(3) of the Theft Act 1968.Legal Issue: Does the money received by the manager from the sale of his own beer constitute "receiving property on account" for the employer under Section 5(3) of the Theft Act 1968?

​Held (Court of Appeal): D's actions did not constitute theft under Section 5(3) of the Theft Act 1968. The money was received by D on his own account, from the private sale of his own beer. This was considered a breach of contract, and not a matter for criminal law. The appropriate remedy lies in civil law.

​Key Takeaways: Section 5(3) Interpretation: This case clarifies that Section 5(3) does not automatically apply to all situations where an individual receives money while owing an obligation to another. "On Account"

​Requirement: The funds must be received specifically on behalf of the other party, not merely in a context where an obligation exists.

Distinction Between Criminal and Civil Liability: The case emphasizes the boundary between criminal theft and civil breaches of contract. Not every breach of a contractual obligation involving money constitutes theft.

​Implications for Studying Theft:
​Careful Analysis of Obligations: When analyzing potential theft cases, carefully examine the nature of the obligation and the capacity in which the defendant received the property.

​Focus on Intent and Deception:
Consider whether the conduct suggests deceptive practices. Civil vs. Criminal Threshold: Consider whether the action is better suited for civil remedy.
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