Question
Can you please explain this question? Thank you Lee would like a La-Z-Boy Sofa but cannot afford the price of $3,600. He decides to buy
Can you please explain this question? Thank you
Lee would like a La-Z-Boy Sofa but cannot afford the price of $3,600. He decides to buy one on hire-purchase from Buckingham Furniture Ltd. (BFL). Lee signs a hire-purchase agreement with BFL, under which he has to pay monthly $150.00 per month for 24 months. Lee takes the sofa back to his flat in his van.
After paying the instalments for three months, Lee loses his job. He can no longer afford the payments and is severely short of money. He asks his friend, Janet, if she would be interested in the sofa for a mere $1,000. Janet agrees and transfers the money to Lee's account. Lee then takes the sofa to Janet's flat. Lee has since then gone travelling to Australia.
As BFL has not received its monthly instalment it tries to contact Lee, first via his mobile phone (which seems to be disconnected) and then visits Lee's flat in Ilam. When the company representative visits Lee's flat she finds it empty and is then told by one of the neighbours that Lee has left the country. On further inquiry, she learns that Janet, who lives across the street, now has the sofa.
BFL sends in debt collectors to Janet's flat to seize the sofa. Janet shows them her bank statement showing the transfer of $1,000 to Lee's bank account. Advise Janet as to her rights to the sofa.
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