Guarantor Seeks Recovery of CNY 22,000 in Disputed Car Sale
A guarantor who paid a car purchase price on behalf of a buyer later found that the vehicle had been resold without ownership transfer. The guarantor sued the seller, the rental company, and the buyer to recover the money. The court ruled that the guarantor could reclaim the amount from the buyer but dismissed claims against the other defendants.
In 2009, a rental company based in Eastern China City rented a car to Mr. Zhao. The car was originally owned by Mr. Wu but had been sold to Mr. Chen, a partner in the rental company, though the registration was never updated. During the rental period, Mr. Zhao had an accident that damaged the vehicle. After repairs, Mr. Chen and Mr. Zhao signed a purchase agreement for the car at CNY 22,000. Mr. Li acted as guarantor for Mr. Zhao. When Mr. Zhao failed to pay, Mr. Li paid the full amount to the rental company. Later, Mr. Li discovered that the car had been resold by Mr. Chen to another person and then transferred to a new owner. Mr. Li demanded repayment from all parties but was refused, leading to the lawsuit.
During the court hearing, Mr. Li presented the rental contract, the purchase agreement, a receipt for his payment of CNY 22,000, and vehicle registration records showing that Mr. Wu remained the registered owner. The rental company and Mr. Chen argued that Mr. Chen had purchased the car earlier from Mr. Wu and that the sale to Mr. Zhao was valid. They claimed Mr. Li should seek reimbursement only from Mr. Zhao. The court reviewed evidence including multiple purchase agreements and a bank transfer. Although some parties objected to certain documents