Question
Clarkson purchased an automobile from Easyprice Autos for $17 000, under a conditional sale agreement. Easyprice assigned the conditional sale contract to CVF Inc., which
Clarkson purchased an automobile from Easyprice Autos for $17 000, under a conditional sale agreement. Easyprice assigned the conditional sale contract to CVF Inc., which advanced Clarkson the bulk of the purchase price. CVF immediately registered its security interest under the (Ontario) Personal Property Security Act. Six months later, Clarkson entered into a second conditional sales contract with Sonmax Corp. for the purchase and installation of stereo equipment in the vehicle at a cost of $3500, including financing charges. CVF was not informed of this second contract. Sonmax promptly registered a lien against the vehicle under the Repairs and Storage Liens Act. A few months later, when Clarkson fell into arrears with his repayments, Sonmax repossessed the vehicle and gave Clarkson notice of its intention to sell the vehicle to secure repayment of what was owed it. At that point, CVF learned of the action by Sonmax and also claimed the vehicle. Which firm has the prior claim?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started