Contracts Keyed to Calamari
Williams v. Walker-Thomas Furniture Co.
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Appellee operated a retail furniture store. Appellee permitted consumers to purchase furniture by paying monthly installments. Such purchases were governed by a form contract that provided the value of the item and purported to lease the item for a monthly payment. The contract stated that the appellee would retain title to the furniture until the total of all monthly payments equaled the value of the item. In the event of default, the appellee could repossess the item. The contract also contained an obscure provision that allowed the appellee to apply each monthly payment pro rata to all outstanding leases. The effect of such a provision is to keep a balance due on every item until there was no balance due on any of the items. This gave Appellees the right to repossess all items in the case of a default. Appellants Thorne and Williams both purchased items that were repossessed under a purchase contract.
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