FILING UNDER THE CONDITIONAL SALES ACT: IS IT NOTICE TO SUBSEQUENT PURCHASERS?

Abstract

This article refutes the widely held belief throughout the legal profession that when a seller under a conditional sale agreement files it in accordance with the Conditional Sales Act, his or her rights respecting the goods sold under the agreement are protected even against a subsequent purchaser for value and without notice. To illustrate support for the opposing argument that filing under the Conditional Sales Act is not notice for the purpose of the Factors Act or the Sales of Goods Act, it reviews the statutory provisions at issue and canvasses the common law position. It then addresses certain difficulties in the opposing argument and the effect of hire-purchase agreements before urging against amendment.