Some agreements by guarantor void if guarantor not independently advised
19 Some agreements by guarantor void if guarantor not independently advised
Where a guarantor enters into an agreement binding the guarantor —
to pay to the owner under a hire‑purchase agreement an aggregate sum which is larger than the balance originally payable under the hire‑purchase agreement; or
to perform an obligation in respect of goods other than the goods comprised in a hire‑purchase agreement; or
to permit the owner under a hire‑purchase agreement or any person acting on behalf of the owner to enter upon any premises for the purpose of taking possession of or inspecting goods that are subject to the hire‑purchase agreement; or
to relieve the owner under a hire‑purchase agreement or any person acting on behalf of the owner from liability for any such entry,
the agreement so entered into by the guarantor is void and the owner under the hire‑purchase agreement concerned commits an offence against this Act unless the agreement is executed by the guarantor in the presence of a solicitor instructed and employed independently of the owner and the solicitor, as the case may be, certifies in writing upon the agreement —
that he is satisfied that the guarantor understands the true purport and effect of the agreement; and
that the guarantor has executed the agreement in his presence.
A solicitor shall not give a certificate in respect of an agreement under subsection (1) unless —
he has read over and explained the agreement to the guarantor or has caused the agreement to be read over and explained to the guarantor in his presence; and
he has examined the guarantor touching his knowledge of the agreement; and
he is satisfied that the guarantor understands the true purport and effect of the agreement; and
the guarantor has freely and voluntarily executed the agreement in his presence.
Failure by a solicitor to comply with subsection (2) in respect of a certificate does not invalidate the certificate.
[Section 19 amended: No. 107 of 1973 s. 17.]
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