HIRE-PURCHASE

Evening Post, Volume CXVI, Issue 35, 10 August 1933, Page 12

HIRE-PURCHASE

RETURN OF MOTOR-CAR

COMPANY'S EXPLANATION

Following a recent decision by Mr. E. Page, S.M., in which h e granted relief to the purchaser of a motor-ear after holding that certain, conditions of a hirerpurchaso agreement used by Dominion Motors, Ltd., aanounted to a penalty, Mr.'A. J\f.,Cousins, counsel for the company, at the Magistrate's Court today, asked that, in /justice to the company, leave should hh given him to refer to certain facts that did not appear in the judgment. The company at the'hearing claimed, that, under the terms of its agreement, it was entitled to the full valua of the outstanding promissory notes, plus interest and insurance, notwithstanding the fact that the car had boen returned and that the- sum of £.345 had, already been credited to the. purchaser in partpayment of the car, which was bought for £641 14s 9d. ' "Unfortunately," said Mr. Cousins, " a number of pe/ople are under the impression that tho company was not prepared to make a.ny allowance to the defendant on the resale of the car. The company's attitude was stated in a letter written to the defendant's solicitors on March 31 last. The material parts of that letter are as follows: — " 'Tlio company has adopted the policy of allowing no credit when it sues for the balance purchase price. It is, however, prepared to allow a credit on payment by the defendant. Upon a resale being effreeted the company would deduct from the resale price all costs of resale (including an allowance for overhead expenditure) and' any other costs arising out of repossession and resale.' l "I would like to point out," continued counsel, "that the amount of this credit could not toe ascertained at the date of the hearing as the car had liot then been resold,. As a matter of fact, this action was really a test case brought for thei purpose of ascertain-, ing the legal affect of certain clauses in the agreement." "The mattffre mentioned by counsel," said Mr. Page, "do not affect the legal consideration of the document. That i,vas the only duty which the Court at ,'the time had to consider, but I think that it is due to the plaintiffs to give counsel an opportunity of stating what, the plaintiff's practice was, and what it intended to do in the present casrs on the resale of the car." Mr. S. G-.. Stephenson, who appeared for the da-fendant (Edmund W. Cotter) and Mr. Cousins, then submitted legal argument on questions as to whether t'ho defendant was liable for an insurance premium on the car and. for throe instalments of purchase money amounting to £30 that were outstanding at the time the car was handed 'back to Dominion Motors. < The Magistrate reserved his decisions on. these points.