PURCHASE OF CAR

New Zealand Herald, Volume LXX, Issue 21577, 23 August 1933, Page 12

PURCHASE OF CAR

CLAIM FOR COMPLETION JUDGMENT FOR £207 Claim for loss incurred through an alleged failure to carry out the terms of a hire purchase agreement over a motor-car was inado before Mr. Justico Herdman in the Supreme Court yesterday. The Automobile Finance Company, Limited (Mr. Johnstone and Mr. Haynes), sought to recover from Charles H. Court (Mr. Inder), £207, the amount said to be unpaid under an agreement. Two related agreements were made on June 29, 1931, between the plaintiff company and Alfred Ernest Hay, of Auckland, salesman, who bought the car, and between the plaintiff company and tho defendant, who backed the purchaser. The original price of the car was £665 6s, including a deposit of £2OO for the option of purchase, tho remainder to be paid in 24 monthly _ instalments. Tho promissory notes which Hay gave for tlieso wore endorsed by the defendant. Mr. Johnstone said Hay made default in his payments, and on May 18, 1932, tho plaintiff company terminated tho agreement with him and repossessed the car. The sum duo was then £329, which, after negotiation, was reduced to £277. The defendant refused to purchase tho car, and the plaintiff, after attempting to sell it by auction, disposed of it privately for £7B. That was credited against tho amount owing by defendant. Tho defendant's liability arose when the hire purchase agreement was terminated. Mr. Inder submitted that whether tho agreement was a hire purchase or a conditional purchase agreement, the defendant's responsibility ceased on the termination of tho contract by the owner. Ho argued that the agreement was a conditional purchase one. Defendant was no more than a guarantor. If tho plaintiffs fotook possession of the chattel they had to content themselves with the chattel. They could not have both the chattel and the money. His Honor said tho caso seemed to him reasonably clear. Tho result depended entirely upon tho view taken of the documents. Defendant's liability must be determined entirely upon tho interpretation of the agreement to which he affixed his name. His Honor could only construo the language used in tho drawing of tho document as a contract on tho part of the defendant to become tho purchaser of the chattel. He would therefore give plaintiff judgment for £207 7s 4d, with costs and expenses.