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{\f291\fbidi \fmodern\fcharset204\fprq1 Courier New Cyr;}{\f293\fbidi \fmodern\fcharset161\fprq1 Courier New Greek;}{\f294\fbidi \fmodern\fcharset162\fprq1 Courier New Tur;}{\f295\fbidi \fmodern\fcharset177\fprq1 Courier New (Hebrew);}
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{\f671\fbidi \froman\fcharset204\fprq2 Cambria Cyr;}{\f673\fbidi \froman\fcharset161\fprq2 Cambria Greek;}{\f674\fbidi \froman\fcharset162\fprq2 Cambria Tur;}{\f677\fbidi \froman\fcharset186\fprq2 Cambria Baltic;}
{\f678\fbidi \froman\fcharset163\fprq2 Cambria (Vietnamese);}{\flomajor\f31508\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\flomajor\f31509\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}
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{\fdbmajor\f31518\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\fdbmajor\f31519\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\fdbmajor\f31521\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}
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{\fdbmajor\f31525\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\fdbmajor\f31526\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fhimajor\f31528\fbidi \fswiss\fcharset238\fprq2 Calibri Light CE;}
{\fhimajor\f31529\fbidi \fswiss\fcharset204\fprq2 Calibri Light Cyr;}{\fhimajor\f31531\fbidi \fswiss\fcharset161\fprq2 Calibri Light Greek;}{\fhimajor\f31532\fbidi \fswiss\fcharset162\fprq2 Calibri Light Tur;}
{\fhimajor\f31533\fbidi \fswiss\fcharset177\fprq2 Calibri Light (Hebrew);}{\fhimajor\f31534\fbidi \fswiss\fcharset178\fprq2 Calibri Light (Arabic);}{\fhimajor\f31535\fbidi \fswiss\fcharset186\fprq2 Calibri Light Baltic;}
{\fhimajor\f31536\fbidi \fswiss\fcharset163\fprq2 Calibri Light (Vietnamese);}{\fbimajor\f31538\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\fbimajor\f31539\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}
{\fbimajor\f31541\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\fbimajor\f31542\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\fbimajor\f31543\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}
{\fbimajor\f31544\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fbimajor\f31545\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\fbimajor\f31546\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}
{\flominor\f31548\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\flominor\f31549\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\flominor\f31551\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}
{\flominor\f31552\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\flominor\f31553\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\flominor\f31554\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}
{\flominor\f31555\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\flominor\f31556\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fdbminor\f31558\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}
{\fdbminor\f31559\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\fdbminor\f31561\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\fdbminor\f31562\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}
{\fdbminor\f31563\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\fdbminor\f31564\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fdbminor\f31565\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}
{\fdbminor\f31566\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fhiminor\f31568\fbidi \fswiss\fcharset238\fprq2 Calibri CE;}{\fhiminor\f31569\fbidi \fswiss\fcharset204\fprq2 Calibri Cyr;}
{\fhiminor\f31571\fbidi \fswiss\fcharset161\fprq2 Calibri Greek;}{\fhiminor\f31572\fbidi \fswiss\fcharset162\fprq2 Calibri Tur;}{\fhiminor\f31573\fbidi \fswiss\fcharset177\fprq2 Calibri (Hebrew);}
{\fhiminor\f31574\fbidi \fswiss\fcharset178\fprq2 Calibri (Arabic);}{\fhiminor\f31575\fbidi \fswiss\fcharset186\fprq2 Calibri Baltic;}{\fhiminor\f31576\fbidi \fswiss\fcharset163\fprq2 Calibri (Vietnamese);}
{\fbiminor\f31578\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\fbiminor\f31579\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\fbiminor\f31581\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}
{\fbiminor\f31582\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\fbiminor\f31583\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\fbiminor\f31584\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}
{\fbiminor\f31585\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\fbiminor\f31586\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255;\red0\green255\blue0;
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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \snext21 \sqformat \spriority0 \styrsid2757113 Indent1;}{\s22\qj \fi-601\li2761\ri0\sb240\sa240\widctlpar
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\sbasedon19 \snext22 \sqformat \spriority0 \styrsid2757113 Num List 2;}{\s23\qj \fi-601\li3481\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls16\ilvl2\outlinelevel2\adjustright\rin0\lin3481\itap0 \rtlch\fcs1 \af0\afs24\alang1025 
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\sbasedon19 \snext27 \sqformat \spriority34 \styrsid2757113 List Paragraph;}{\s28\ql \li0\ri0\sl-360\slmult0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 
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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13781359\charrsid2757113 IN THE SUPREME COURT OF FIJI
\par Civil}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid8215924\charrsid2757113  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13781359\charrsid2757113 Jurisdiction
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2757113 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid11365652 ACTION}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid11365652  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid11365652 NO. 22 OF}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid8215924\charrsid11365652  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid11365652 1983}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2757113 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11365652 Between}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2757113 :}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11365652 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2757113\charrsid11365652 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13781359\charrsid2757113 CARPENTERS FIJI LIMITED}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid11365652\charrsid2757113 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 PLAINTIFF}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2757113\charrsid8215924 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 -and\_
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2757113 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13781359\charrsid2757113 MERIT TIMBER PRODUCTS LIMITED}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid657209\charrsid2757113 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 DEFENDANT
\par }\pard \ltrpar\s28\ql \li0\ri0\sl-360\slmult0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid657209 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2757113 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid657209 Mr. H. Lateef for the plaintiff }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid657209 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid657209 Mr. D.C. Maharaj for the defendant}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2757113 
\par }\pard\plain \ltrpar\s39\qc \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid657209 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \b\insrsid2757113\charrsid2757113 JUDG}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid657209\charrsid2757113 MENT
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8592273 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
On the 27th April, 1981, the plaintiff company entered into an agreement with the defendant company whereby it was agreed that the plaint
iff would lease to the defendant a reconditioned Caterpillar 955L track type Loader with logforks and fibreglass canopy for a period of 24 months from 1st May, 1981, at a monthly rental of $2,768.00.
\par It was also agreed between the parties that}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8592273  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 should the d
efendant pay all rentals payable under the agreement and not be in default thereunder it would have the option to purchase the machine on giving written notice of exercise of the option and on further payment of the sum of $5,500.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16739693 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The said Agreement was in
 writing executed under seal by the defendant company.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid16739693 
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11276655 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16739693\charrsid8215924 plaintiff's}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  copy of the said Agreement was not executed by the plaintiff company although it purports to have an acceptance on it by "CARPTRAC" signed by}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11276655  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 "E.J. Handley Manager".
\par The machine was delivered to the defendant}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11276655  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 company either on the 1st or 5th May, 1981. The date is not certain.
\par On or about the 21st July, 1981, trouble was}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11276655  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 experienced with the machine and it was delivered to the plaintiff company for repairs.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5076371 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 There is no dispute as to the 
condition of the machine when it was returned for repairs. The engine had seized due to it being operated with no oil or insufficient}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5076371  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 oil.}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The cause of there being no or little oil circulating}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5076371  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid13781359\charrsid8215924 is not known. The repair account came to $9,909.67.
\par Clause 3(a) of the Agreement provides as}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5076371  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 follows}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 :}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 
\par {\listtext\tab}}\pard\plain \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls17\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid14576273 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 "3. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13781359\charrsid14576273 MAINTENANCE OF EQUIPMENT:}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 
\par {\listtext\tab}(a) Lessee will keep the equipment in good order and repair so that 
they shall at all times during the term of this Lease be in first class condition for equipment of their description and (without limiting the generalty of the foregoing) will pay all expenses of operating, servicing and maintaining the equipment and at a
ll times as}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13375510  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
occasion requires will furnish (so far as the equipment is of a kind requiring the same) all fuel, oil, tyres, greasing, repairs, renewals, replacement parts, washing, cleaning, polishing and garaging."
\par }\pard\plain \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14576273 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 Clause 4. provides as follows}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 :}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
\par {\listtext\tab}}\pard\plain \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls17\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid14576273 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12740525 "4. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid13781359\charrsid14576273 DAMAGE TO EQUIPMENT:}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 
\par {\listtext\tab}}\pard \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls17\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid12740525 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Lessee will be liable to make good all damage caused to or suffered by the equipment during the term of the lease and Lessor reserves the right to carry out all repairs, maintenance,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12740525  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid13781359\charrsid8215924 servicing and whatsoever to make good such damage at Lessee}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 s expense."
\par }\pard\plain \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12481087 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Clauses 3 and 4 are stringent provisions and committed the defendant to keeping the machine in good order at all times during the term of the hiring and to making good all damage to the machine howsoever caused. Insurance covered accidental 
loss and damage but there is no provision for fair, wear and tear normally found in}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12481087  a }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 lease.
\par The reason for this stringency would appear to be the nature of the transaction - a Hire/Purchase one. During the hire period of 24 months it is anticipated the op
tion to purchase will be exercised at the end of the hire and the lessee is treated from the inception as}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12481087  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 ultimate owner of the machine.}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 As such ultimate owner}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12481087  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 it is to be expected that he accepts all expenses and risks in connection with the machine.
\par This idea of ultimate ownership is borne out also by the written Used Equipment Warranty Statement which the plaintiff gave to the defendant at about the time of the defendant executing the Agreement.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14968384 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The Warranty is expressed to extend over a period of 30 da
ys from the 1st May, 1981. As the machine broke down about 21st July, 1981, the Warranty had expired more than a month previously.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11803773 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Mr. W.L. Briggs the Manager of the defendant company said in evidence that when he read the Warranty he told Mr. Chute, an em
ployee of the plaintiff company that the Warranty was a joke because it virtually said that if the machine broke down it was his (Mr. Brigg}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 s problem). Mr. Chute was alleged to say "we would stand you right" leading Mr. Briggs to believe that the plaintiff company would take care of the machine for a longer period than}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid11803773  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 stated in the guarantee.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15741350 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 Mr. Chute, the plaintiff company}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 s sales Manager denied that he told Mr. Briggs not to worry and that Carptrac would make good any major defects.
\par The burden of establishing that the Warranty period was extended beyond the 30 days stated therein lies on the defendant and it has not discharged that burden.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9635785 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
There was in any event another hurdle that the defendant had to overcome and that was to establish that the seizure of the motor arose through a defect that would have been covered by the Warranty.
\par Mr. Briggs who has had considerable mechanical experience agreed that the damage caused to the machine was due to it being driven with low or no oil. He could not say why the
re was low oil or no oil. He mentioned several possible causes such as faulty rings or valve guides. He denied that the cause was negligence of the operator of the machine in not carrying out proper maintenance. He testified to seeing the operator topping
 up the engine of the machine on the day it broke down.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3768008 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
It is not possible to determine why there was little or no oil in the engine but there is no dispute that the damage to the machine was a direct result of it}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3768008  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 being driven with little or no oil in the engine.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16457448 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Under the Agreement the defendant was obligated to keep the machine in good condition. The Warranty had expired but in any event the defendant did not establish that the damage was the result of faulty or defective parts.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9049668 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The defendant is liable to 
meet the costs of the repairs necessitated by it being driven with no or little oil.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4273339 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4273339 T}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
he repairs were not completed until 18th November, 1981, when the plaintiff wrote to the defendant requesting settlement of an account for $18,213.76 made up of $9,909.67 the costs of the repairs and $8,304.00 arrears of monthly lease rentals.
\par When this account was not paid the plaintiff company wrote again claiming cost of the repairs and the sum of $65,269.67 the total of the remaining lease rentals provided for in the hire/purchase agreement.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8419407 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
In this action the plaintiff company now claims the sum of $9,909.67 cost of the repair, the sum of $18.03 advertising costs and general damages for breach of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8419407  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 agreement.
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8419407 Before considering the plaintif}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8419407 f}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2821260 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8419407 s claim further,}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9796862  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8419407 or the defendant}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8419407 '}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid13781359\charrsid8419407 s defence and counterclaim, there is one alternative legal defence which should be considered.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9796862 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
The defendant alleges that the true nature of the transaction was that it was a loan or sale of a machine on time payments and that the agreement was in fact
 a Bill of Sale which was not registered under the provisions of the Bills of Sale Act and the agreement is therefore void and unenforceable.
\par Even if the transaction was a Bill of Sale, the provisions of the Bills of Sale Act would have no application and 
that is because the defendant is an incorporated company. Under section 3 of the Act the capital or property of an incorporated company is expressly excluded from the definition of "personal chattels".
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13313833 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid9796862 
Section 2 of the Act applies to every bill of sale whereby the holder or granter has power at}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  any time to seize or take possession of any }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\ul\insrsid13781359\charrsid13313833 personal chattels}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  comprised}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13313833  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
in or made subject to such bill of sale.
\par The transaction in the instant case was clearly a hire/purchase one. The agreement expressly provides that the equipment remains the personal property of the lessor (the plaintiff company).
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5834737 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
In England the hire/purchase transactions are different. The owner of the chattel sells it to a finance company whi
ch either re-sells it to the prior owner on hire/purchase terms or to a third person to whom the former owner had arranged to "sell" the chattel.
\par It is where the owner is in fact seeking finance and sells his chattel to a finance company and then enters into a hire/purchase agreement in respect of the same chattel that it has sometimes been held that the agreement is in}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid5834737  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 reality a bill of sale.
\par Ha}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5834737 l}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 sbury 4th Edition Volume 22 paragraph 211}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5834737  states:}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 
\par {\listtext\tab}}\pard\plain \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls17\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid12737841 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 "211.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
BILLS OF SALE DISTINGUISHED.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 A bona fide agreement in writing for the bailment or sale of goods which}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 are not to become the property of the bailee or buyer}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 unless and until the last instalment of the stipulated}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 payments is made,}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 and providing for the right of the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
owner or seller to retake possession in default of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 payment, is not a bill of sale, and does not require}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 to be registered under the Bills of Sale Acts. This}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
is because no property is conveyed by such an agreement}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 to the hirer or buyer during the effective currency of}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid2563308  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 the agreement, and, therefore, the hirer or buyer not}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
being the owner of the goods, the licence to seize only}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 empowers the owner or seller to retake possession of his}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 own goods. The effect is the same if the owner of chattels}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
sells them and by an independent contract becomes the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 hirer or buyer of the same goods under a hire purchase or}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 conditional sale agreement made with the purchaser, even}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
if the amount of the purchase price in such a contract}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 is a sum equivalent to that obtained by the hirer or buyer}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid145942  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 on the original sale."
\par }\pard\plain \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid145942 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The agreement in the instant case is not a bill}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid145942  of sale.
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The machine was at all material times the property of the plaintiff company and this finding disposes of the defendant company}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}
{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 s counterclaim for damages for conversion and a declaration that it is the owner of the machine. There now remains only the defendant company}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 s counterclaim for damages for alleged wrongful repossession.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10779936 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Each party alleges that there has been a breach of the agreement by the other party. The defe
ndant company paid only four of the monthly instalments up to the end of August 1981 and no payments thereafter. Two of those payments were made while the machine was in the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12025185\charrsid8215924 plaintiff's}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  possession for repairs.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12025185 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The repairs to the tractor were not completed 
until November, 1981, by which time three monthly payments of rent would have been overdue if the agreement was still}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12025185  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 in force.}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 It is not clear what the plaintiff did as}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12025185  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 regards the breach alleged by the defendant company. In its letter of the 1st December, 1981, it claimed the costs of repairs and the remaining lease rentals payable under the agreement totalling $65,269.67.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13583919 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Under clause 16 of the Agreement headed MISCELLANEOUS it provides (inter alia) that}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11040941  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 :
\par {\listtext\tab}}\pard\plain \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls17\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid15613471 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 "In case of any default by Lessee hereunder all
 sums due and to become due hereunder shall, at the option of Lessor or any assignee of Lessor, become payable forthwith."
\par }\pard\plain \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11040941 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The Miscellaneous clause is a most unusual one and contains a great many provisions that are normally separate and distinct provisions in an agreement.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2445165 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Clause 14 provides specifically for default but there are as many if not more provisions in clause 16 dealing}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2445165  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
with default than there in the default clause.
\par The letter of 1st December, 1981, appears to indicate that the plaintiff company}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 s original claim was made pur}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid7607363 su}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 ant to the provisions of clause 16 a claim which it did not pursue in this action.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7607363 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
The plaintiff in its Statement of Claim did not quantify its claim for damages other than its claim for the repairs and advertising charges.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12677112 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
There is no basis for its claim for the advertising charges which were incurred when the plaintiff}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12677112  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 endeavoured to sell the machine.}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The defendant company}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12677112  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 never exercised its option to purchase and cannot be held responsible for those charges.
\par Although the plaintiff through its Credit Controller, Mr. Low, endeavoured in Court to quantify its claim for damages, I must treat the claim as one for general}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12677112  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 damages for breach of contract.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The figures he furnished}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid12677112  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 would assist if the basis for determining the measure of damage is the balance rentals payment}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8657645 s}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924  due under the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12677112  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
agreement less the value of the machine at the time of the alleged breach. The only comment I would make about the figures at this stage is that the value of the machine should be the market value a
nd not book value which could reduce the claim by $6,000 or $7,000 or even more dependent on the percentage mark up of the machine for retail purposes.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13566548 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
The defendant alleges there was a breach by the plaintiff company in that it repossessed the machine without notice.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3954230 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
The claim by the defendant company for damages for wrongful possession arose as a result of an admission by Mr. Sadasiwan, an Assistant Accountant, employed by Carptrac when he was giving evidence for the plaintiff}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid3954230  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 company.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 He stated in eviden
ce in chief that depreciation}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3954230  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 was calculated for 3 months to arrive at the written down value of $41,218 for the machine as at 31st July, 1981.

\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1708330 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3954230 I}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
n answer to a question from the Court as to why a period of 3 months to the 31st July, 1981, was taken, he stated that 3 months depreciation was taken because that}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1708330  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 was "when machine was repossessed".}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 He confirmed in answer}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid1708330  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 to a further question from Mr. Lateef that his company}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 s records indicated that the machine had been repossessed.
\par He later sought to qualify that statement by expressing doubts about whether the machine had in fact been repossessed.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15754570 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 Mr. Sadasiwan gave his evidence in a clear and}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15754570  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 straight forward manner.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 He worked for Carptrac where the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15754570  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 machine was kept and repaired and as an Assistant Accoun
tant would have been in a position to know whether the machine}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15754570  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 had been repossessed.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 He clearly admitted that Carptrac}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid15754570  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
records showed the machine had been repossessed.
\par There was no repossession in the sense that it was taken out of the actual possession of the defendant company since it was already in Carptrac}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 s possession to carry out repairs but there was a factual determination of the defendant}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
s right to possession.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid150115 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Repossession as at the 31st July, 1981, would not in the circumstances be unusual. The machine when brought in for repairs had suffered very extensive damage and it was the view of Mr. Petero Mausio the }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid150115\charrsid8215924 plaintiff's}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  employee expressed in his letter of 4th August, 1981, that the damage was caused by the negligence of the defendant company}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid150115  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 "for not carrying out the fundamentals of operating the machine".
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1859170 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid150115 The probability is that the plaintiff then decided }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid13781359\charrsid8215924 to terminate the leasing and assume possession of the machine and instructions were then given to the Accounting Department to record the change preparatory to selling or leasing the machine again.
\par A complicating factor is that the defendant}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1859170  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
company paid rental for August, 1981. Monthly rentals were covered by promissory notes which the plaintiff presented to the defendant company}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 s bank each month for payment.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13238597 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
It would appear that the plaintiff presented the note for the August payment which was met but later notes were dishonoured because the defendant cancelled its instructions to the bank to honour any further notes.
\par The plaintiff continued presenting the notes until in December 1981 they purported to treat non payment of rentals after August 1981 as a breach of the agreement.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3871452 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
I find as a fact that the plaintiff company repossessed the machine on or}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13238597  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 about the 31st July, 1981. On}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid3871452  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 that date the defendant company was not in breach of any of the provisions of the agreement. Rental was paid to the 31st August, }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid3871452 1}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 981.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4095199 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The plaintiff company was not obliged to}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid4095199  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 give notice of repossession.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
The agreement specifically}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4095199  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 provided that notice is not required.
\par At the time the machine was returned to Carptrac for repairs, there was a dispute as to liability for payment of the repair account. The defendant company then contended the damage was due to internal defects and intimated it could not meet the account.

\par Mr. Briggs in evidence mentioned surrendering the machine and that when he saw there was no early prospects of getting the machine back he instructed the bank not to}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid4095199  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 honour any more promissory notes.
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid5585462 Exhibit No. 4 is a letter written on behalf of the defendant company to Carptrac}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid5585462 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid5585462 s Audit}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
 Controller. That letter referred to earlier advice that the defendant company could not keep the machine while it was not in running order and referred to an offer made by the plaintiff company to let the defendant have the mac
hine with no repair charges and two months grace as regards payments.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12742550 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
There was no mention of Exhibit 5 by any of the witnesses nor was there any reply to it tendered.
\par Mr. Briggs }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid12742550\charrsid8215924 wrote}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  Exhibit 6 to Carptrac dated 8th February, 1982, to which he never recei
ved a reply. The letter appears not to have been finished because the second paragraph appears to be incomplete.
\par Exhibit 6 does however indicate that Mr. Briggs was still disputing liability for repairs and he refers to returning the machine in June 1981. That date appears to be an error because the machine was delivered for repairs in July 1981.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1851917 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
I mention this evidence because it appears that about July or August 1981 there was a dispute regarding liability for repairs. Both parties took action about that time which indicates the hiring was at an end.
\par On the plaintif}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 f}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid9531898 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
s part is the fact that it instructed its accounting department to record the repossession}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1851917  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 of the machine about the 31st July, 1981.}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 There were}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1851917  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
subsequent instructions given to sell or lease the machine. Mr. Chute testified that he received instructions after}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1851917  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
repairs were done to sell or lease the machine.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 He could}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1851917  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid13781359\charrsid8215924 not say when he received the instructions.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9044238 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 On the defendant}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 s part at about the same time the bank}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 s instructions to honour the notes were cancelled and steps were taken to obtain another machine from America.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11279372 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Rental was payable monthly in advance. Rent for August 1981 was due and presumably paid on or shortly before}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11279372  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
1st August, 1981. That was the last payment made.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11279372  }{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid13781359\charrsid8215924 plaintiff company}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
s action in treating the machine as having been repossessed or back in stock as at 31st July, 1981, appears to indicate that the plaintiff company accepted that situation at that time but later in December 1981 purported to claim that the
re were three monthly instalments overdue.
\par There is one liability that the defendant has not}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11279372  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 met and that is the repair account.}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 It was not ascertainable}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11279372  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
in July or August 1981 because repairs had not then commenced. Under the agreement the defendant company is liable to pay the costs of the repairs.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14426557 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 In clause 16 are provisions purporting to provide}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid14426557  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 that the lease is irrevocable.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 It provides as follows
\par {\listtext\tab}}\pard\plain \ltrpar\s21\qj \li1440\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\ls17\outlinelevel0\adjustright\rin0\lin1440\itap0\pararsid12981034 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 
\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
"This lease is irrevocable for the full term hereof and for the aggregate rental herein reserved, and the rent shall not abate by reason of termination of the Lessee}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid13781359\charrsid8215924 s right of possession and/or the taking of possession by Lessor or for any other reason, and delinquent instalments of rental shall bear interest at the highest lawful contract rate."
\par }\pard\plain \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14426557 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 
\af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 It is understandable that Mr. Lateef did not have much to say about clause 16 and only referred to it when asked by the Court where it was provided that the plai
ntiff company could claim all unpaid rentals.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3497700 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 In view of the decision I have come to it is not necessa}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid2317301 ry to consider whether clause 1}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
6 is enforceable but I would add that if hire/purchase transactions of the nature that the plaintiff company is embarking on becomes a feature}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497700  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
in commercial }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid3497700\charrsid8215924 circles}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  in Fiji there may well be an urgent need for }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid3497700\charrsid8215924 legislation}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 , to regulate such transactions.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4019346 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 Highly developed countries overseas have}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid4019346  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 found such legislation necessary to protect purchasers who are very much more sophisticated and educated than most Fiji citizens.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8732320 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
I have some sympathy for the defendant company. Carptrac who specialise in Caterpillar equipment were apparently unable to complete repairs within a period of about four months. This may have been due to not h
aving spare parts in stock in which case it would have been equitable in the circumstances to waive rental payments until the machine had been repaired. Unless a person can make use of a machine to earn money he is not likely to be able to meet}{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8732320  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 payments.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 C
ompanies that sell equipment should carry normal}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8732320  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
spares but in Fiji it is public knowledge that there are long delays while waiting for spares to arrive from overseas.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8732320  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
Delay may also have been because the leasing was terminated about July 1981 and the plaintiff company had other machines in stock available for sale or leasing and did not have to hurry with the repairs.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16329752 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
The burden of establishing that the defendant company was in breach of its agreement falls on the plaintiff}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16329752  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 company.}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 It has not satisfied me there was any breach which}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16329752  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 entitled it to general damages.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 It has however established}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid16329752  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 that the defendant is liable for the costs of repairs.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11684112 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
On the other hand there is evidence that the plaintiff company terminated the leasing by repossessing the machine 
about 31st July, 1981, but that termination, if it was a breach of the agreement, did not result in any loss or damage to the defendant company. No such loss or damage has been established and accordingly the defendants counterclaim must fail and is dismi
ssed with costs to the}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11684112  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 plaintiff company.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 I have not overlooked the payment of}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11684112  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
the August rental. There has been no claim for refund of this rental. Nor did the defendant cancel the August}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11684112  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
promissory note. The defendant company obviously considered rental for August was payable at that time.
\par The defendant company could not have expected to have had the machine repaired and in operation before the end of August 1981 due to the extensive damage sustained by the machine.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13840249 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 If there was in fact a breach by the def
endant company of any term of the agreement as at the 31st August, 1981, by which date the plaintiff company appears to have already determined the lease, since the defendant company had not repudiated the agreement the measure of damages to which the pla
intiff company would be entitled would only be the arrears of instalments (if any).
\par In }{\rtlch\fcs1 \af0 \ltrch\fcs0 \i\insrsid13781359\charrsid11994266 Brady and Another v. St. Margarets Trust Ltd}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11994266 . [}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 1963}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid11994266 ]}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  2 All ER 275 it was held that the defendants were only entitled to arrears of instalments up to the date they deter
mined the agreement since there had not been a repudiation of the agreement by the plaintiff but only a failure on their part to pay the instalments.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16145218 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The terms of the agreement in Brady}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 s case are n}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16145218 o}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
t known. Lord Denning M.R. referred to the agreement as being in the ordinary form the terms of which were very familiar.
\par If there had been a breach by the defendant company then I would have had to consider the legality or enforceability of clause 16 of the agreement in the instant case.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5853124 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid16145218 There is a further matt
er also if the defendant company had been in breach and that is that the plaintiff company had a number of other similar machines in stock which}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5853124  }{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid13781359\charrsid8215924 it later leased or sold.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid6503574\charrsid8215924 It}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
 had a duty to minimise its}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5853124  }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 loss by disposing of the machine leased to the defendant}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5853124  }{
\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 company before disposing of any other machine.
\par I am also in doubt as to whether the plaintiff company could refuse to deliver the machine which it still owned after it had been repaired until the repair account had been paid. The plaintiff company also to
ok advantage of the occasion to do some work on the machine which had nothing to do with the damage. The defendant company was charged with $31.70 plus the company}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid13781359\charrsid8215924 s profit thereon for what Mr. Ensor admitted was repairs due to wear and tear but was he said necessary.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9774911 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
If the repairs involving expenditure of $31.70 were necessary they would be covered by the agreement but in my view they should not have been carried out without prior reference to and instructions from t
he defendant company. This is yet another matter which satisfies me that the leasing was at an end before the repairs were done and the plaintiff company took the opportunity to get the machine into first class condition preparatory to selling it.
\par }\pard \ltrpar\s39\ql \li0\ri0\sb240\sa240\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5639665 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 The defendant company}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\insrsid8215924\charrsid8215924 '}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid11994266 s counterclaim is dismissed.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
\par There }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5639665 will}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 
 be judgment for the plaintiff company against the defendant company for the sum of $9,909.67 with costs of the claim and the counterclaim.
\par }\pard\plain \ltrpar\s28\qc \li0\ri0\sl-360\slmult0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11994266 \rtlch\fcs1 \af0\afs20\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {
\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13781359\charrsid11994266 (R.G. KERMODE)}{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid5639665\charrsid11994266 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \b\insrsid13781359\charrsid11994266 JUDGE
\par }\pard \ltrpar\s28\ql \li0\ri0\sl-360\slmult0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11994266 {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid11994266\charrsid5639665 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924 SUVA,
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16730018 7th}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid13781359\charrsid8215924  SEPTEMBER, 1984.
\par 
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