Motor Mart and Exchange Ltd v Singh (C,C. 315-1930.)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Where a vehicle subject to a hire-purchase agreement is totally destroyed, the contract of hiring automatically ceases as there is nothing left to hire. The owner is entitled to recover damages for the loss of their property, being the unpaid balance of the purchase price, rather than continuation of monthly instalments.
Outcome
Judgment entered for plaintiffs with provision for payment by instalments subject to conditions
Facts
The plaintiffs supplied a car to the defendant under a hire-purchase agreement. The car was subsequently destroyed in an accident and was damaged beyond repair, constituting a total loss. The car was insured by the defendant in accordance with the contract terms. The defendant made a claim on the insurance company, which disputed liability, leading the defendant to commence separate proceedings against the insurer. The plaintiffs brought this action to recover Sh. 2,411/63, being the unpaid balance of the purchase price, and Sh. 230 for transport and haulage expenses incurred after the accident. The defendant contended that the plaintiffs were only entitled to continuation of monthly instalments rather than immediate judgment for the full amount.
Issues
- Whether upon total destruction of the subject-matter of a hire-purchase agreement, the plaintiffs were entitled to immediate judgment for the entire unpaid balance of the purchase price, or only to continuation of monthly instalments.
Orders
- Judgment for the plaintiffs as claimed.
- Defendant to pay Sh. 2,411/63 as damages being the balance of the agreed price.
- Defendant to pay Sh. 230 being expenses for transport and haulage of the damaged car.
- Costs of the action awarded to the plaintiffs.
- Execution stayed provided defendant pays Sh. 230 and taxed costs forthwith, and continues monthly payments of Sh. 301/45 until receipt of insurance payment, whereupon any remaining balance becomes immediately due.
Rules and key headnotes
Full judgment
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