The case of Bowmakers, Ltd. v. Barnet Instruments, Ltd. deserves perhaps more attention than it has received. The judgment, delivered by du Parcq L.J., is per curiam. and of a strong Court of Appeal. It is a broad and easy-flowing judgment which cites few authorities and states a general rule in general terms without enumerating the exceptions to which it adverts. It accordingly gives rise to not a few difficulties. But it may well be correct on the main points which it appears to decide; and it may prove to be generally helpful in principle, upon the difficult topic of property passing under illegal contracts, if the principle involved can be extracted and stated with particularity.
The facts, as determined in the Court of Appeal, are as follows:—
The defendants (appellants), Barnet Instruments, Ltd., were minded to purchase from a Mr. Smith some machine tools; but instead of the defendants purchasing directly from him, in order to facilitate the financing of the transaction, it was arranged, as is customary, that Bowmakers, Ltd., the plaintiffs, should buy the machines from Smith and let them, upon normal hire purchase terms, to the defendants. Accordingly the plaintiffs, having bought from Smith, entered into three separate hire purchase agreements with the defendants: Nos. 1 and 2 of March and April, 1944, concerned new machine tools, No. 3 of June, 1944, dealt solely with a machine tool which was ‘used’. The defendants ‘after making some, but by no means all the agreed payments sold for their own advantage and converted to their use, all the machines except that one which was the subject of agreement 2, and this latter they also converted to their own use by refusing to deliver it up to the plaintiffs on demand’.