Reed Bros v Bosch [1914] ZATPD 109 (27 October 1914)

Contract-Hire purchase agreement.-Purchase and sale inferred.
Rescision on ground of latent defect-Uselessness for purpose
intended.

Wliere a purchaser claims resc1ss1on of a contract of purchase and .sale on the ground of latent defects in the article sold, the Court has to decide on the evidence as a whole, having regard to the purposes for which he bought and the seriousness of the defects, whether he would have bought if he had known
of the defects. B entered into an agreement with R with reference to a motor car which provided that R let to B the car but " unless and until a purchase was effected the car
is to remain the property of R, and B was to be merely the bailee or custodian thereof." B agreed to pay R £10 on entering into the agreement and thereafter two further sums of £15 and £26 5s. Under sec. 2, B had to keep the car in good order and condition. B paid the £10 to R and took possession of the car, but owing to latent mechanical and structural defects it was found to be practically useless. B thereupon returned the car and brought
an action for the recovery of the £10 against R. Ileld, that the agreement was one of purchase and sale, the dominium in the car passing to B on payment of the last instalment.
Held, further, that as the car had not been delivered in good order and condition, which was implied from sec. 2 and was not reasonably fit for the purpose for which it had been bought, B was entitled to succeed.