Implied Conditions of Hire Purchase Agreement

When entering into a hire purchase agreement, both parties – the buyer (hirer) and the seller (owner) – must be clear about the terms and conditions of the agreement. One of the most important aspects to consider are the implied conditions of a hire purchase agreement.

Implied conditions are those that are not specifically stated in the agreement but are nevertheless expected to be followed by both parties. These conditions are imposed by the Hire Purchase Act of 1965 and are a crucial part of the agreement.

The first implied condition is that the owner has the right to sell the goods. This means that the owner must have the legal right to sell the goods before entering into an agreement with the hirer. If the owner does not have the right to sell the goods, the hirer may be entitled to damages or compensation.

The second implied condition is that the goods are of satisfactory quality. This means that the goods must be fit for their intended purpose and free from defects. If the goods are not of satisfactory quality, the hirer may be entitled to a refund or replacement.

The third implied condition is that the goods match the description given. This means that the goods should match any description given by the owner or the manufacturer. If the goods do not match the description given, the hirer may be entitled to a refund or replacement.

The fourth implied condition is that the hirer will have quiet enjoyment of the goods. This means that the hirer has the right to use the goods without interference from the owner or any third party. If the hirer is unable to use the goods due to interference, they may be entitled to compensation.

The fifth implied condition is that the owner will provide title to the goods. This means that the owner must have the legal right to transfer ownership of the goods to the hirer. If the owner is unable to provide title to the goods, the hirer may be entitled to compensation.

Overall, it is important for both the hirer and owner to understand the implied conditions of a hire purchase agreement. By doing so, they can ensure that they are both complying with the law and that the agreement is fair and reasonable. If either party fails to adhere to the implied conditions, legal action may be taken.