Is cl. 16 of a leasing agreement enforceable?

Counsel for the plaintiff charges that cl. 16 of the leasing agreement merely gives the defendant an option to purchase the vehicle after the expiration of the first 12 months of the agreement and that there is no obligation to transfer title if the option is not exercised. He relies on Helby v. Matthews, [1895] A.C. 471. He also maintains that, by the use of words in the leasing agreement such as “the lease”, “lessor” and “lessee”, the agreement cannot be a sale or an agreement of sale. He submits that the agreement cannot come within the ambit of s. 19(1)(c) of the Act, as the parties never intended that property in the goods would pass to the defendant on payment of the rentals and the residual value or on the performance of any condition.