Lottering v SA Motor Acceptance Corporation Ltd 1962 (4) SA 1 (E)

Lottering v SA Motor Acceptance Corporation Ltd 1962 (4) SA 1 (E)

Issue: Whether a motor finance company can recover a vehicle from a purchaser who has failed to make payments under a hire-purchase agreement.

Facts:

Lottering purchased a vehicle from SA Motor Acceptance Corporation Ltd (SAMAC) under a hire-purchase agreement. The agreement provided that Lottering would make monthly payments to SAMAC until the full purchase price of the vehicle was paid.

Lottering fell into arrears with his payments and SAMAC repossessed the vehicle. Lottering then demanded that SAMAC return the vehicle to him, arguing that the repossession was unlawful.

SAMAC refused to return the vehicle, arguing that it was entitled to repossess the vehicle under the terms of the hire-purchase agreement.

Held:

The Court held that SAMAC was not entitled to repossess the vehicle. The Court reasoned that the hire-purchase agreement did not expressly give SAMAC the right to repossess the vehicle if Lottering fell into arrears with his payments.

The court also found that SAMAC had not given Lottering a reasonable opportunity to rectify his breach of contract by paying the arrears in his payments.

Key Facts:

• A purchaser of a vehicle under a hire-purchase agreement failed to make payments.
• The motor finance company repossessed the vehicle.
• The purchaser demanded that the vehicle be returned to him, arguing that the repossession was unlawful.
• The motor finance company refused to return the vehicle, arguing that it was entitled to repossess the vehicle under the terms of the hire-purchase agreement.

Reasons:

• The Court held that the motor finance company was not entitled to repossess the vehicle.
• The Court reasoned that the hire-purchase agreement did not expressly give the motor finance company the right to repossess the vehicle if the purchaser fell into arrears with his payments.
• The court also found that the motor finance company had not given the purchaser a reasonable opportunity to rectify his breach of contract by paying the arrears in his payments.

Conclusion:

The Court's decision in Lottering v SA Motor Acceptance Corporation Ltd 1962 (4) SA 1 (E) is a significant case in South African law. The Court's decision clarified the law relating to the rights of motor finance companies to repossess vehicles from purchasers who have failed to make payments under hire-purchase agreements.