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

Question

Quizplus · Accepted Answer

Since Andrew properly registered the conditional sale agreement according to provincial legislation, his interest in the snowmobile is protected against subsequent purchasers like Gary, even if Gary did not search for conditional sale agreements. Therefore, if Janicka defaults on the payment, Andrew has the right to seize the snowmobile from Gary.

Janicka Purchased a Snowmobile from Andrew Under a Conditional Sale