By: Sarah Rasemont, Attorney
A recent judgment reminds us that when delivering a vehicle, the seller must give the buyer all the documents necessary for its transfer and registration.
Article 1716 para. 1 of the Civil Code of Québec (“C.C.Q.“) provides that the seller is required to deliver the property, and to warrant its ownership and quality. Article 1717 C.C.Q. specifies that this obligation to deliver the property is fulfilled when the seller puts the buyer in possession of the property or consents to the buyer taking possession of it, and all hindrances are removed.
In Seck v. 9381-2998 Québec inc.1, the Court of Québec asked whether the used car dealer who sold the vehicle had fulfilled its obligation when delivering it. In this case, when possession was taken of the vehicle, it was delivered with a temporary registration. However, the dealer allegedly failed to hand over the registration documents.
The Court noted that the buyer had to retain the services of a lawyer and send a formal notice before the dealer took steps to issue the documents allowing the vehicle to be registered. According to the Court, the dealer had been lax and the Court came to the conclusion that the dealer had not fulfilled its obligation to deliver by failing to take the necessary steps to transfer the vehicle in the buyer’s name in a timely manner.
The Court noted that delivering the property is the primary obligation that the seller must meet at the time of the sale, and specified that in the event of non-performance of this obligation in a timely manner, the buyer is justified in requesting cancellation of the sale and reimbursement of the price paid.
Thus, the Court declared the contract of sale between the buyer and the dealer with respect to the vehicle terminated, ordered the customer to return the vehicle to the dealership, and ordered the dealer to reimburse the sale price as well as damages in the amount of $1500 for the stress and inconvenience caused by its failure to honour its contractual commitments.
Picture credit : LDB Lawyers
