Fairfield Credit Corp. v. Donnelly
Connecticut Supreme Court
264 A.2d 547 (1969)
John and Mary Donnelly (defendants) bought a color television from D.W.M. Advertising, Inc. (DWM) under an installment contract. The installment contract was financed by assigning it to the Fairfield Credit Corporation (Fairfield) (plaintiff) after the sale. The installment contract was written on a form Fairfield provided to DWM. The back of the form included fine print stating that the buyer: (1) would settle any disputes with the seller and (2) would not raise any buyer-seller issues as a defense against the installment contract’s assignee, Fairfield. DWM contacted Fairfield as soon as the Donnellys had signed the contract. Fairfield double-checked with the Donnellys that they had received the television and then accepted assignment of the installment contract from DWM. At the same time that the Donnellys signed the installment contract, DWM signed a service agreement stating that DWM would maintain the television for a year. Soon after the sale, the television needed multiple repairs from DWM. Within a few months, however, DWM completely disappeared. The Donnellys soon gave up trying to repair the television and stopped paying under the installment contract. Fairfield sued the Donnellys to recover the amount remaining on the contract.
Rule of Law
Holding and Reasoning (King, C.J.)
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