Harmon Motors Ltd. v. Brittain et al., (1970) 1 Nfld. & P.E.I.R. 273 (NFCA)

• Judge: Puddester, Higgins and Mifflin, JJ.
• Court: Court of Appeal (Newfoundland)
• Case Date: May 20, 1970
• Jurisdiction: Newfoundland and Labrador
• Citations: (1970), 1 Nfld. & P.E.I.R. 273 (NFCA)

Harmon Motors v. Brittain (1970), 1 Nfld. & P.E.I.R. 273 (NFCA)

MLB headnote and full text

Harmon Motors Limited v. Brittain et al.

Indexed As: Harmon Motors Ltd. v. Brittain et al.

Newfoundland Supreme Court

On Appeal

Puddester, Higgins and Mifflin, JJ.

May 20, 1970.

Summary:

Appeal Court allowed appeal and held that when a conditional seller of goods repossesses and resells the goods, the resale has the effect of rescinding or terminating the sales contract and of relieving the buyer from further obligation regarding the sales price, notwithstanding the fact that the contract contains no repossession clause and accordingly does not fall within the provisions of the Conditional Sales Act.

In obiter, the Appeal Court also held that an agreement for lease of goods with an option to purchase was a conditional sale within Section 2(f)(ii) of the Conditional Sales Act.

Conditional Sales - Topic 22

Definition of conditional sale - The Newfoundland Court of Appeal held agreement for lease of truck with option to purchase is a conditional sale within section 2(f)(ii) of Conditional Sales Act.

Conditional Sales - Topic 1804

Seller's remedies, repossession and sale - Repossession and sale, general - Effect of, respecting buyer's obligations - Repossession and resale of goods sold pursuant to a conditional sales contract has effect of rescinding or terminating contract and relieves buyer from further obligation - (Newfoundland Court of Appeal).

Cases Noticed:

Humphrey Motors Limited v. Ells, [1935] S.C.R. 249; [1935] 2 D.L.R. 705, folld.

Statutes Noticed:

Conditional Sales Act, S.N. 1955, c. 62, sect. 2(f)(ii), sect. 12.

Counsel:

M.J. Monaghan, for the defendant, appellant;

E. Poole, for the plaintiff, respondent.