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Car & Universal Credit v Caldwell [1964] 2 WLR 600

Mr Caldwell sold his Jaguar car on 12th Jan to a rogue, Norris, who had paid £10 cash deposit and left another car as security and gave a cheque for £965. The following day Mr Caldwell went to cash the cheque and discovered it was fraudulent and the car left as deposit turned out to be stolen. Mr Caldwell reported the incident to the police and used his best endeavours to co-operate with the police to find Norris in order to rescind the contract of sale. He also contacted the Automobile Association to try to locate the car. Norris had acquired a voidable title to the car as the contract was induced by fraudulent misrepresentation. Norris sold the car on to a third party on 15th Jan. The question for the court was whether the actions taken by Mr Caldwell were sufficient to avoid the contract.

Held:

Mr Caldwell had successfully rescinded the contract. He had taken all steps possible to demonstrate that he no longer wished to be bound by the contract. He should not be prejudiced by the fact that his endeavours failed to locate Norris.
 
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