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Feldaroll Foundry Plc v Hermes Leasing (London) Ltd

Sale of goods - Contracts - Hire purchase - Dealing as consumer - Companies - Fitness for purpose - Satisfactory quality - Unfair contract terms - Right of purchaser to reject goods on grounds of fitness - Unfair Contract Terms Act 1977, s 6 (2) - Unfair Contract Terms Act 1977, s 10

28 May 2004

The first defendant (H) appealed a decision that it was liable to the claimant (F) in relation to the sale of a defective car sold on a hire purchase agreement. F had agreed to the purchase of a Lamborghini motor car by way of hire purchase. H was a finance company which had agreed to provide the necessary finance agreement. The car was to be used by F's managing director (B), who was an enthusiast of high performance cars, and accordingly the use of the Lamborghini was seen as a reward. The car was defective and it was accordingly returned to the dealer within a few days. However F sought to roll-over the terms of the finance agreement to the supply of a replacement performance car. Accordingly F paid initial instalments under the terms of the finance agreement. A replacement car was never provided and the dealer subsequently became insolvent. By the instant proceedings F sought the repayment of the sums paid by way of instalments under the finance agreement, and H sought the remainde...

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