Consumer Credit Flashcards
Andrews v Hopkinson
Credit - broker’s liability to the debtor At common Law (replaced by S.56)
- Dealer was found liable. Dealer promised that the vehicle was of a certain quality. The customer had bought a bus and the dealer told him it was of good quality. They agreed to HP and then had an accident due to a defective steering column. The dealer was liable even though there was no contract between them because there had a specific warranty by the dealer and because the car defect was due to a negligent lack of inspection.
Durkin v DSG Retail Ltd
the law implies a term whereby the survival of a credit agreement is conditional upon the survival of the supply agreement. By rejecting the goods and thereby rescinding the supply agreement Mr Durkin could also rescind the credit agreement by invoking the implied condition
-Durkin wanted to buy a laptop, he went to PC world in Aberdeen and specified his requirements. The sales assistant didn’t know if it had an inbuilt modem, but he wasn’t allowed to take it out of the box to check. He was told that he could bring it home and if it didn’t have one he could return it. He paid the deposit and completed the credit agreement. The sales assistant signed the credit agreement on behalf of HFC. The laptop didn’t have the internal modem. He asked for his deposit back and they refused the goods and didn’t cancel the agreement. The sheriff court granted a declaration that Mr Durkin had rescinded the contract
