R let a vehicle on hire purchase terms to one E(SS), who passed it to BD in breach of his obligations under the hire purchase agreement. E(SS) drew up an ‘invoice’ stating the value of the car to be a certain sum, X. At the time, E(SS) owed BD substantially more than X for goods supplied. E(SS) had been unable to discharge that debt, and BD therefore took the vehicle in part satisfaction of the debt.
Held: The Judge considered whether the transaction amounted to a ‘disposition’ within section 29. He said this: ‘it appears to me that the consideration for this transaction was not money, albeit a document called an ‘Invoice’ was produced and the value of the vehicle agreed. Rather the consideration was a forbearance to sue for that part of the outstanding debt represented by the vehicle’s value. It was not ‘an exchange for property for money’ and not, therefore, a disposition as defined by section 29 sub-section 1 of the Hire-Purchase Act 1964′.
Astill J
Unreported, July 9th 1993
Hire-Purchase Act 1964 29(1)
England and Wales
Cited by:
Cited – VFS Financial Services Ltd v JF Plant Tyres Ltd QBD 26-Feb-2013
The defendant had acquired a vehicle in lieu of payment of a debt. The vehicle was subject to an HP agreement with the claimant, who now sought possession of it. The defendant argued that it had the protection of section 27, there having been a . .
Lists of cited by and citing cases may be incomplete.
Consumer, Contract
Updated: 20 January 2022; Ref: scu.519967