Obtaining Credit Flashcards
Obligations/requirement of credit to be vaild
The obligation to pay must be legally enforceable against whomever the
credit is obtained
Time to pay
Credit may involve varying periods of time. It can be obtained over lengthy periods, as in loan agreements, or for a matter of minutes:
EG the time taken to consume a meal or receive a haircut.
At the end of the period of credit payment is expected to be made.
Credit – 3rd person
Under the extended definition of “obtain” it will be sufficient that the defendant obtained the extension of credit to another person
(Credit may be obtained on behalf of another person)
Examples of situations where ‘credit’ may be obtained include:
• obtaining money on loan
• extending existing overdraft facilities
• renting or leasing a dwelling
(Timing of) Intention to deceive - Case Law
R V MCKAY -
On appeal it was held that the credit had been obtained on booking in but at that time the accused did not possess an intent to deceive
There must be an intent to deceive at the time the credit was obtained
Continuing representation example
Nice to know: When someone enters a restaurant and ordering a meal would usually be a representation that they will follow the normal practice and pay for the meal.
If during the course of the meal, they decide to avoid payment, the continuing representation of an intention to pay will become false and any subsequent obtaining of food will come within s240.
Payment withheld
Intent to deceive does not exist where payment is withheld because of genuine dissatisfaction with the service.
Hire purchase
Where goods are obtained on hire purchase by a false representation, the offence committed is deception.
However, if the offender later sells the goods to another, the offender commits theft by conversion.
The offender never receives title for goods
fraudulently obtained on hire purchase
