Is a verbal representation as to the roadworthiness of a car before the hire purchase agreement is signed?

Saskatchewan, Canada


The following excerpt is from Francis v. Trans-Canada Trailer Sales Ltd., 1969 CanLII 620 (SK CA):

In Webster v. Higgin [1948] 2 All ER 127, 92 Sol J 454, a verbal representation as to the roadworthiness of a car was made before the hire-purchase agreement was signed. It was held by the court of appeal that this undertaking was a collateral warranty, the effect of which was not negatived by a clause in the written agreement excluding all warranties other than those in the document. It is clear from this judgment that such a clause is to be very strictly construed against the person who relies on it.

It is clear on the above authorities that the appellant cannot rely on the exclusionary clause in the conditional-sales contract. Where, as here, the collateral agreement is consideration for the entering into the written agreement, the exclusionary clause cannot prevail against it. The present facts, in my view, fall clearly within the principle enunciated in Brownsberger v. Harvey, supra.

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