RELIANCE TRADING COMPANY (MANCHESTER), LTD. v. HAUGHTON.

(1929) 35 Ll L Rep 214

MANCHESTER COUNTY COURT.

Before His Honour Judge Leigh.

Contract-Hire purchase agreement or bill of sale-Sale of motor car-Agreement by hire purchase finance company (plaintiffs) to let to let hirer (defendant) for an immediate payment followed 12 monthly payments; provided all payments punctually made hirer to have option of purchase for nominal sum; in default agreement to come to an end and owners to resume possession; due performance guaranteed by X (original owners) - Whether the agreement genuinely represented the transaction, i.e., that there was an actual sale by X to plaintiffs who hired car to defendant, or whether the transaction was in fact a loan by plaintiffs to defendant, with the car as security, and should have been registered as a bill of sale-Onus of proof-Evidence of facts surrounding making of agreement- Held that there was an actual sale by X to plaintiffs and that the hire purchase agreement was valid-Maas v. Pepper, [1905] A.C. 102, distinguished.