Whose contract?

[Slegal]

I hope someone can assist urgently.

A car was bought by person A using B's money. It was paid for on B's debit card and cash. B instructed A to purchase the car for them because B could not.

The seller, C, knew the car was for B and filled the V5 on B's name. However on the invoice it states A's name. The car and insurance are in B's name.

There is now contract dispute. B insists it is their contract but C says it is not.

Can anyone please guide me whose contract it is? Speaking to CAB and a barrister, they say the contract is with B. But speaking to a different barrister they are state the contract is with A.

Can anyone please guide me who the contract is with? And forward &/or guide me especially to the law section/s and to any case law?

The reason I ask is the matter has gone to court and we have had a number of postponements and hearings on different matters. C is insistent now contract is with A. But A is not on the claim because A and B have split up. So from outset B has dealt with everything including lodging the claim.

I would be ever so grateful for any assistance. I have checked the internet (for a couple of hours) but cannot get a definitive answer. The matter is urgent I have a hearing very shortly.

[des8]

Re: Whose contract?

Hi and welcome.

Could you please clarify who is the claimant and who is the defendant?
What is the claimant seeking?

[FlamingParrot]

Re: Whose contract?

I hope someone can assist urgently.

A car was bought by person A using B's money. It was paid for on B's debit card and cash. B instructed A to purchase the car for them because B could not.

The seller, C, knew the car was for B and filled the V5 on B's name. However on the invoice it states A's name. The car and insurance are in B's name.

There is now contract dispute. B insists it is their contract but C says it is not.

Can anyone please guide me whose contract it is? Speaking to CAB and a barrister, they say the contract is with B. But speaking to a different barrister they are state the contract is with A.

Can anyone please guide me who the contract is with? And forward &/or guide me especially to the law section/s and to any case law?

The reason I ask is the matter has gone to court and we have had a number of postponements and hearings on different matters. C is insistent now contract is with A. But A is not on the claim because A and B have split up. So from outset B has dealt with everything including lodging the claim.

I would be ever so grateful for any assistance. I have checked the internet (for a couple of hours) but cannot get a definitive answer. The matter is urgent I have a hearing very shortly.

We need to get a clearer picture here. So A and B were a couple at the time of the purchase of the car, presumably living together and not bothered about who owned the car because they could both use it. Is there any reason why B could not purchase the car even when it was B's money?

You say B has 'dealt with everything including lodging the claim'. So B is the claimant, is that right? Is B trying to establish ownership of the car now he's split up with A? If this is a dispute between A and B over the car, where does C come in? C got his money for the car from B. You say A is not on the claim, so is B suing C? What for?

What remedy is the claimant (presumably B) seeking?

[Slegal]

Re: Whose contract?

The Claimant seeks a refund. The car was and is substantially faulty ans was mis-sold. The vehicle was rejected early on.

Yes, A and B were together but not any more and have no contact.

C, the seller, knew the car was for B. They filled in the V5 under B's name and posted it out. Also payment was taken on B's card. The invoice however is in A's name. After 2 years plus of litigation C now disputes the contract is with B and insists it is with A which B rejects given C knew full well it was for B. B could not sign the contract for B has two little children to take care of but was within the vicinity (in the foyer with the toddlers) when car was sold. Sale was under B's instructions to then partner. I hope this makes sense now. The vehicle was always under B's name.

Any support regarding the law and case law?

C has lied through their teeth and fabricated evidence. They have dragged the case for over 2 years. Their barrister has also acted unlawfully, told many lied and mislead the court repeatedly. But there is no need to go there here.

- - - Updated - - -

By the way thank you both for your help so far.

[des8]

Re: Whose contract?

It seems to me that A acted as agent for B, the principal.
A was an agent authorised to conclude a single transaction for B.
The circumstances indicate that A was not authorised to contract in his own name.
In an agency relationship title to the goods remains with the principal (the vehicle is in principal's name)
The fact that A was acting as agent for B was disclosed and obvious in that B's bank card was used, and the vehicle was registered in B's name.
B, the principal is the correct person to take action against the seller.
I'll have to go hunting to find relevant case law!

[Slegal]

Re: Whose contract?

Thank you des8. I have the hearing tomorrow so if you can provide me any case law asap I'd be most grateful.

[des8]

Re: Whose contract?

This was a one time agency set up between the two parties.
It will be up to the defendant to show that B was not the principal, and so does not have standing to bring the claim.
The circumstances you mentioned (use of B's Debit card, registration of vehicle in B's name) will IMO make it difficult for him to show B is not the principal.
Just denying the fact is not proof.

Agency law is involved, but this is a fairly straightforward situation and it will be for the judge to decide if B is right claimant.


An agent who acts within the scope of authority conferred by his or her principal binds the principal in the obligations he or she creates against third parties.

• Ireland v Livingstone [1872] LR 5 HL 395 for Express Actual Authority
• Hely-Hutchinson v Brayhead Ltd [1968] 1 QB 549 for implied actual authority
• Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480 for apparent authority

If you intend to use these authorities they should already have been declared in your case statements, and copies filed and served.

[Slegal]

Re: Whose contract?

I cannot thank you enough!!!

[Slegal]

Re: Whose contract?

I now wait for a new re-listed trial date for hearing. Will keep you guys informed in due course.

[Slegal]

Re: Whose contract?

Can someone locate any case law regarding how long you can have an item (in this case a car) before declining it due to serious inherent faults (including major engine) and ask for a full refund? Surely, six weeks is nothing before the faults started to really manifest themselves and notifying the seller. I'm aware it does depend on the type of item/cost etc... but clearly a car is a very advanced piece of kit and often faults are not realised until some time later.

I've located some of interest (causal browse on the internet) but wish to cross-check or be provided with even more stronger reasons/case law.

However, we did first ask for a repair,replacement and then finally a full refund. All refused by seller.

Thank you in advance for your support.

- - - Updated - - -

Obviously it doesn't have to be a car but where the same arguments and case law can be used.

[des8]

Re: Whose contract?

Your statutory rights bestowed by the Sale of Goods Act 1979 give you 6 months in which to reject a vehicle, during which period the dealer would need to prove the faults weren't present when you purchased it.
You then have a further 5 years and six months in which to reject the vehicle, but you have to prove the faults were there when you purchased the vehicle.

Re case law most cases will be dealt with in County Court and judgements there are not binding on other courts.
However here's one (newspaper) report http://cardealermagazine.co.uk/publi...pay-2750/52909
This SCOTTISH case might be of use< j & h ritchie ltd v lloyd ltd 2007
Also see: rogers-v-parish-scarborough-ltd-ca-1987
And this article might be of interest: http://www.lawgazette.co.uk/news/on-...13.fullarticle

[Slegal]

Re: Whose contract?

des8, you are a legend mate and most, most helpful, thank you. I have other case law too which I will use. I will look at those links.
Best,