The Quarterly Journal of Judicial Law Views

The Quarterly Journal of Judicial Law Views

Legal Presumption of the Further Liability of Creditor on Breaches by Supplier in Debtor-Creditor-Supplier Agreements

Authors
Abbas Gasemi hamed 1
Maryam Ameri 2
1 Shahid Beheshti University
2 Judiciary
Abstract
Abstract
In tri-lateral consumer credit agreements, Recognition legal liability of lender on breaches by supplier is based on two undeniable realities: 1- close relations of lender and supplier so that they seem to be a Joint venture. 2- Responding the requirements of distributive justice and supporting the consumers as the weaker party by imposing all losses incurred by consumers due to any breach of contracts by suppliers on lenders. Whereas in UK the creditor is liable for all losses suffered by Consumer, in US, this liability is limited to the amount of credit not settled. In Iranian Legal system, regardless of lack of protective legislation on consumer credit, considering the method of conclusion of tripartite credit agreements, recognition of liability of lenders encounter two main obstacles. Lack of effective relations between the lender and supplier in most credit agreements is the first. Intensive interpretation and replacing the criterion of the possibility of derivation of common interest between supplier and creditor can solve this problem. The Second obstacle isconferring the role of seller to the creditorin almost all of the tripartite credit agreements, concluding the contract in the form of direct loan, resulted in the unification of the role of the supplier and the creditor in one person. Since conferring the role of seller to creditors is artificial and just in order to withhold gavel, passing over this artificial form and interpreting the real intent of the parties abate this obstacle.
Keywords
Trilateral credit, Creditor, Supplier, Consumer, Legal liability
Keywords
Key words: trilateral credit
Creditor
Supplier
Consumer
Legal Liability
1. Bridge, M.G (1977), “Aspect of law relating to credit cards in the United
Kingdom and the United States”, Northern Ireland legal quarterly, v.28. n4.
2. Chapman,M,(2004, 2005, 2007, 2008) “Section 75 of the consumer credit Act of 1974:”Connected lender liability and forein transactions”, International travel law journal, NN: (2004,18), (2005, 67), (2007, 69) (2008, 16).
3. Collins.D.M, “Connected lender liability: clarification from the supreme court”:
https://espace.mmu.ac.uk/611788/2/Connected%20Lender%20Liability-20clarification%20from%20the%20Supreme%2 0Court.pdf (last seen: Novamber 2017).
4. Donnelly. M & White.F, (2005), “The distance selling directives - A time for review”, Northern Ireland legal quarterly,Vol.56 , No. 2.
5. Durkin (appellant) V. DSG Retail Limited and another (respondents) (Scotland), Suprem Court of Scotland: https://www.supremecourt .uk/cases/docs/uksc-2012-0135-judgment.pdf (last visited on 1/1/2018).
6. Gibbs, Ch R. Andrew E. Jillson & Mohney, M. R, (1985), “Creditor and consumer rights”, Southwestern Law journal, Vol 39.
7. Grove V. Amex Europe Limited, [2004]EWHC2600 (Comm), Case No 2003 Folio No687, Mi, Http://www.Bailii.org/ew/cases/EWHC/Comm/ 2004/2600.html (last Seen: 12/25/2017).
8. Harvey, B. w. & Debora l. parry, (1987) The law of consumer protection and fair trading, 3rd edn, London: butter worth.
9. Hood. p, (2012), Principle of Lender Liability, Uk: Oxford university press.
10. MacQueen, H, (2011), “Faulty goods, rejection and connected lender liability”, The Edinburg Law Review, vol 15.
11. Rohner.R, (1975), “Holder in due cource in consumer transactions: requiem, revival, or reformation?” Cornell Law Review, Vol 60, N4.
12. Routledge-Cavendish Publishing Staff, Business law, 2edn, London: Cavendish.
13. Ruff. A, (2005), Contract Law, 4th ed, London: Sweet & Maxwell, 2005.
14. The Law Commission,(2012), “The report of commission on consumer redress for misleading and aggressive practices”, N 332: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236079/8323.pdf .
15. The report of Commission on Consumer redress for misleading and aggressive practices, 97:https://www.lawcom.gov.uk/project/consumer-redress-for-misleading-and-aggressive-practices/ (last seen: 1/1/2018).
16. Vandone. D, (2012) Consumer credit in Europe, Berlin: Physica-verlag(Springer).
17. Whitmore. J, (1975), “Consumer Credit Act 1974”, The Law Teacher, Vol 9, No.1: www.heinonline.org (last seen:September 2017).