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,and Simon seizes the snowmobile,Smith would have a right of action against Simple.

Question

Quizplus · Accepted Answer

Smith can pursue a right of action against Simple because Simple sold the snowmobile without clear title, as the conditional sale agreement was registered and Simple was aware of it.

Simple Purchased a Snowmobile from Simon Under a Conditional Sale