Cases Related to Hire Purchase Agreement

Hire purchase agreement is a type of agreement where the ownership of a product or a property is passed on to the buyer after they make a series of payments. Hire purchase agreement is a common practice for people who want to buy something but don`t have enough money to pay for it upfront. However, like any other agreement, there are legal cases related to hire purchase agreements. In this article, we will take a look at some of the legal cases related to hire purchase agreements.

Case 1: Gifford v Cartwright [1940] 1 KB 409

This case is important because it established the principle that when a buyer uses the product before they have paid for it, they are not entitled to any compensation if the product is damaged or if it breaks down. In this case, Gifford bought a car under a hire purchase agreement. He used the car before he had paid for it, and the car broke down. Gifford claimed that the seller was responsible for the repair costs, but the court ruled against him.

Case 2: Re Graham [1931] 2 Ch 487

In this case, the buyer of a horse under a hire purchase agreement was unable to make the payments. The seller took back the horse, but the buyer claimed that the horse was worth more than the outstanding amount of the hire purchase agreement. The court ruled that the seller was entitled to take the horse back and sell it to recover the outstanding amount of the hire purchase agreement.

Case 3: Summit Finance Ltd v McQuitty [1975] 1 QB 665

In this case, the buyer of a car under a hire purchase agreement defaulted on the payments. The seller took back the car, and the buyer claimed that the seller had breached the agreement by taking back the car before the full amount had been paid. The court ruled that the seller was entitled to take back the car and sell it to recover the outstanding amount of the hire purchase agreement.

Case 4: Hanley v Eboracum Finance Ltd [1968] 1 QB 375

In this case, the buyer of a car under a hire purchase agreement claimed that the car was defective and refused to make the payments. The seller took back the car and sued the buyer for the outstanding amount of the hire purchase agreement. The court ruled that the seller was entitled to the outstanding amount of the hire purchase agreement and that the buyer had to pay the amount.

Conclusion

Hire purchase agreements have been a popular way for people to purchase goods and services for a long time. However, like any other agreement, there are legal cases related to hire purchase agreements. The cases discussed in this article highlight some of the legal issues that can arise when entering into a hire purchase agreement. As a buyer or seller, it is important to understand your rights and obligations under a hire purchase agreement to avoid any legal issues in the future.

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