Simple purchased a snowmobile from Simon under a conditional sale agreement.Simon registered the conditional sale agreement pursuant to the requirements for registration set down in the provincial legislation.Simple later sold the snowmobile to Smith,who purchased the machine without making a search for conditional sale agreements.
-If Simple defaults in payment to Simon,Simon may seize the snowmobile from Smith.

Question

Quizplus · Accepted Answer

Since Simon registered the conditional sale agreement as required by provincial legislation, he has a security interest in the snowmobile. If Simple defaults on payment, Simon has the right to seize the snowmobile from any subsequent buyer, including Smith, who did not make a search for conditional sale agreements before purchasing the machine.

Simple Purchased a Snowmobile from Simon Under a Conditional Sale