Summary

David Davis Hervey v. Rhode Island Locomotive Works…

The policy of the law in Illinois will not permit the owner of personal property to sell it, either absolutely or conditionally, and still continue in possession of it. Possession is one of the strongest evidences of title to this class of property, and cannot be rightfully separated from the title, except in the manner pointed out by statute. The courts of Illinois say that to suffer without notice to the world the real owners ip to be in one person, and the ostensible ownership in another, gives a false credit to the latter, and in this way works an injury to third persons.
Source: Wikisource

David Davis Hervey v. Rhode Island Locomotive Works…

The court held, 'that it was a mere subterfuge to call this transaction a lease,' and that it was a conditional sale, with the right of rescission on the part of the vendor, in case the purchaser should fail in payment of his instalments,-a contract legal and valid as between the parties, but subjecting the vendor to lose his lien in case the property, while in possession of the purchaser, should be levied upon by his creditors.
Source: Wikisource

David Davis Hervey v. Rhode Island Locomotive Works…

Nor is the transaction changed by the agreement assuming the form of a lease. In determining the real character of a contract, courts will always look to its purpose, rather than to the name given to it by the parties. If that purpose be to give the vendor a lien on the property until payment in full of the purchase-money, it is liable to be defeated by creditors of the purchaser who is in possession of it.
Source: Wikisource

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