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. Gary purchased the snowmobile free of any claims by Andrew, because he had no notice of the conditional sale agreement.

Question

Quizplus · Accepted Answer

Gary does not purchase the snowmobile free of Andrew's claims because the registration of the conditional sale agreement serves as public notice of Andrew's interest in the snowmobile, regardless of whether Gary personally had knowledge of it.

Janicka Purchased a Snowmobile from Andrew Under a Conditional Sale