BONA FIDE, fide` (Lat. abl. of bona fides, good faith). Literally, 'in good faith.' It is not a technical term of English law; yet it is often used in connection with the transfer or pos session of property. If a person takes posses sion of another's property, honestly believing it to be his own, and, without notice of the other's title, adds to its value. his liability to the owner is for the value of the property when originally taken : but if the taking is in bad faith, he is held liable, generally, for the whole value of the improved property, without any allowance for his enhancement of its worth. A bona fide purchaser is one who hays property for a valuable consideration, without notice of any defect in his vendor's title and believing that the vendor has a good right to sell and convey a good title. By the civil-law rule, which prevails on the Continent of Europe and in Scotland, such a purchaser from a trader in the course of his business acquires a perfect title. though his vendor had none. According
to the English common law, however, his title is no better than his vendor's. If the vendor had title, but one which was voidable by a third person for fraud (q.v.). the bona fidc purchaser would be able to hold the property. So a bona fide purchaser of property from a trustee clothed with the legal title can hold it as against the cestui gar trust (q.v.). Again, the bona fide of a negotiable instrument (q.v.) holds it free from any defect of title be tween prior parties, and free from defenses available to prior parties among themselves. This rule had its origin in the customs of mer chants, and received the sanction of common-law courts because it was necessary to enable ne gotiable paper to discharge the functions of currency.