Stenning v Radio and Domestic Finance Limited - [1961] NZLR 7

Hire purchase — Hire purchase agreement — Agreement in contravention of statutory provisions — Void inter partes and in hands of assignee without notice — Illegality not curable by estoppel — Collateral promissory notes also void even in the hands of a holder in due course — Economic Stabilisation Act 1948, s. 18 — Hire Purchase and Credit Sales Stabilisation Regulations 1957 (S.R. 1957/170) Regs. 3, 8, 10.

Bills of exchange, promissory notes and other negotiable instruments — Promissory notes collateral with illegal hire purchase agreement — Discounted by finance company without notice of illegality — Not a holder in due course — Such promissory notes void even in hands of holder in due course — Bills of Exchange Act 1908, s. 29 (2).