Finance litigation briefing — May 2014: credit agreement conditional upon survival of supply agreement
By Greg Standing
Where a Consumer Credit Act debtor-creditor-supply agreement finances a specific supply transaction, the law implies into the finance agreement a term making it conditional on the survival of the supply agreement. Where the supply agreement is rescinded for breach of contract, the credit agreement can also be rescinded.
This was the finding of the Supreme Court in Durkin v DSG Retail Ltd. Durkin has entered into this debtor-creditor-supplier agreement to fund the purchase of a computer. Durkin attempted to return the computer the day after purchase as it did not meet his requirements. The retailer refused to accept that rejection or cancel the credit agreement. Durkin refused to make any payments and told the lender he had rescinded both the purchase and credit agreement. The lender continued to demand payment and issued a default notice that was registered with the credit reference agencies.
Durkin sought damages for the lender’s negligent misrepresentation as to his alleged defaults. He claimed damages, including a sum for injury to his credit rating…
Click on the link below to read the rest of the Wragge Lawrence Graham & Co briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Wragge Lawrence Graham & Co
News from The Lawyer
Briefings from Wragge Lawrence Graham & Co
‘Remuneration’ or ‘non-cash benefit’? Big implications for maternity leave.
Employer and trustee duties in relation to pensions and The Pensions Regulator.