Facts: L, being in possession of furniture under a hire purchase agreement made with the claimant, sold and delivered the furniture, before the last payment had been paid to the defendant. D received it in good faith and without notice that the C had any right in respect of it.
Held: In the court of first instance, it was held that the delivery to the defendant was within the provisions of section 9 of the Factors Act, and therefore valid. C appealed and appeal was dismissed:
Lord Esher: “This is a very plain case, and the construction of the statute is very clear. It deals with “Dispositions by mercantile agents” in one set of sections, and with “Dispositions by sellers and buyers of goods” in another set of sections, in which s. 9 is included. The case is clearly within that section. [His Lordship read s. 9.] Mrs. Lloyd had agreed by this hire and purchase agreement to buy the goods, and they were put into her possession with the consent of the owner. Mrs. Lloyd sold the goods to the defendant without notice that they were not hers, and he, acting in good faith and with no notice of the plaintiff’s right, received them. Sect. 9 was passed to meet this very kind of case. I am of opinion that the judgment of Wright, J., was right, and this appeal should be dismissed.”