Court case[1895] AC 471

Helby, a piano dealer, let a piano to Brewster on a hire-purchase agreement: Brewster was to pay a monthly rent, could terminate the hiring and return the piano at any time, and would become owner only if he paid all thirty-six instalments. After paying a few instalments he pledged the piano with Matthews, a pawnbroker, who took it in good faith. Helby sued to recover the piano.

The House of Lords, reversing the Court of Appeal, held that Brewster had not agreed to buy. He had an option to buy by completing the payments but was under no obligation to do so; he could return the piano whenever he chose. An option is not an agreement to purchase. He was a bailee with an option, so the pledge to Matthews passed no title and Helby was entitled to the piano.