Sunday, 13 November 2016
Moorgate mercantile co ltd vs Twitchings
A car dealer who was a member of HPI Ltd was ofered a car by M who told him (the car dealer) that the car was free from hire purchase liability. The car dealer consulted HPI which was the central registrar recording about 98 percent of cars under hire purchase and he was told that the car was not under hire purchase. The dealer bought the car and sold it to another. However the car had been under hire purchase but HPI was not aware of it and where M defaulted, the finance company in charge on the discovery of what had transpired,the company sued to recovery of damage for conversion. The dealer by his defence claimed that by failing to register the hire purchase agreement underHPI the finance company were estopped from claiming damagess for conversion. Held; the dealer was liable for conversion.