Re-possession Ends Agreement

Manawatu Times, Volume LIV, Issue 7250, 1 September 1933, Page 7

Re-possession Ends Agreement

PURCHASE MONEY AND INSURANCE CANNOT BE RECOVERED. Pur Press Association. WELLINGTON, Aug. 31. Mr E. Page, S.M., finalised his judgment to-day in the case of the Dominion Motors, Ltd., against Edmund W. Cotter. Ho had held that certain conditions of the purchasing agreement used by the Dominion Motors amounted to a penalty. He said to-day that, when judgment of a nonsuit was given the question whether three instalments of purchase money amounting to £3O ovordue at the date of repossession cf a car, and insurance premium £lO 3s 2d, paid a month prior thereto were recoverable, was reserved for further consideration. While the contract was subsisting these amounts could no doubt have been sued for, but repossession, he said, put an end to the contract agreement. It was not a hire-purchase but a sale-and-purchase agreement, so instalments were not due for hire, but as part of the purchase money. The vendor’s 3ole remedy after repossession became one for damages for breach of contract and not one for recovery of any part of the purchase money. He thought recovery of the insurance premium stood on a similar footing. The amount would form an item for consideration in an action for damages, but the agreement having been put an end to he did not think the premium could be separately recovered. Judgment for the non-suit must therefore apply to the whole of the claim, vhwh ffi® & M