COMPANY NON-SUITED

Taranaki Daily News, 2 September 1933, Page 7

COMPANY NON-SUITED

HIRE-PURCHASE DISPUTE. SEIZURE ENDS CONTRACTS. By Telegraph—Press Association. Wellington, Aug. 31. Mr. E. Page, S.M., gave judgment today in the case of Dominion Motors Ltd. against Edmund W. Cotter, who was sued for the balance owing- on a car taken back by the company. Mr. Page previously held that certain conditions of the purchasing agreement used by Dominion Motors amounted to a penalty. Mr. Page said to-day that when the judgment of non-suit was given the questions whether three instalments of the purchase money, amounting to £3O, were overdue at the date of repossession of the car, and whether an insurance premium of £lO 3s 2d, paid a month prior thereto, was recoverable, were reserved for further consideration. While the contract was subsisting these amounts could no doubt have been sued for, but repossession, he said, put an bnd to the’ contracts. The agreement was not a but a sale and purchase agreement, so the’unstalments were not due for hire but as part of tn® purchase money. The vendors’ sole remedy after repossession became one for damages for breach of contract and not one for recovery of any part of the purchase money. Mr. Page said he thought that recovery of the insurance premium stood on a similar footing. The amount would form an item for consideration in an action for damages, but an end having been put to the agreement he did not think that the premium could be separately recovered. Judgement of non-suit must therefore apply to the whole of the claim, which was for £336 17s lid.