Hire-Purchase Act 1959

In every hire‑purchase agreement there shall be deemed to be —

an implied warranty that the hirer shall have and enjoy quiet possession of the goods;

an implied condition on the part of the owner that he will have a right to sell the goods at the time when the property is to pass;

an implied warranty that the goods will be free from any charge or encumbrance in favour of any third party (other than a charge or encumbrance created by or with the consent of the hirer) at the time when the property is to pass.

In every hire‑purchase agreement there shall be deemed to be an implied condition that the goods shall be of merchantable quality but no such condition shall be deemed to be implied —

as regards defects of which the owner could not reasonably have been aware, or, if there is a dealer, neither the owner nor the dealer could reasonably have been aware, at the time the agreement was made; or

where the hirer has examined the goods or a sample thereof, as regards defects which the examination ought to have revealed; or

if the goods are second‑hand goods and the agreement contains a statement to the effect that —

the goods are second‑hand; and

all conditions and warranties as to quality are expressly negatived,

Where the hirer expressly or by implication makes known to the owner or to the dealer or to any servant or agent of the owner or the dealer the particular purpose for which the goods are required, there shall be deemed to be implied in the hire‑purchase agreement a condition that the goods are reasonably fit for that purpose but no such condition shall be deemed to be implied if the goods are second‑hand goods and the agreement contains a statement to the effect —

that the goods are second‑hand; and

that all conditions and warranties of fitness and suitability are expressly negatived,

Without prejudice to any other rights or remedies to which an owner may be entitled where the hirer has made known expressly or by implication to the dealer or to any servant or agent of the dealer the particular purpose for which the goods are required, an owner is entitled to be indemnified by the dealer against any damage suffered by the owner through the operation of the provisions of subsection (3).

Nothing in this section prejudices any other enactment or rule or law whereby any condition or warranty is to be implied in any hire‑purchase agreement.