Contracts Keyed to Ayres
Williams v. Walker-Thomas Furniture Co.
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
In 1957, Plaintiff, a retail furniture company, began using a standard form contract for all of its credit transactions. One of the clauses in the contract allowed Plaintiff, upon default by a purchaser, to repossess all items still being paid for at the time of repossession. A separate clause of the contract provided that all credit purchases between a purchaser and Plaintiff would be handled under one account, with all payments made spread pro rata over all items purchased, no matter when the items were purchased. Defendant first purchased furniture from Plaintiff in 1957 and continued to do so through 1962 when she purchased a stereo set. Defendant defaulted on a payment and Plaintiff filed an action to repossess all of the items Defendant had purchased since 1957 since under the terms of the contract, she was still purchasing all of them. The trial court found for Plaintiff and Defendant appealed.
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