Implied Terms III
Consumer Credit Act
PART VI
Hire-Purchase Agreements
Application of Part VI.
56.—This Part shall apply to hire-purchase agreements.
Requirement to state cash price.
57.—(1) Before any hire-purchase agreement is entered into in respect of any goods, the owner shall state in writing the cash price to the prospective hirer, other than in the agreement.
(2) Subsection (1) shall be deemed to have been complied with—
(a) if the hirer has inspected the goods or like goods and at the time of his inspection tickets or labels were attached to or displayed with the goods clearly stating the cash price, either of the goods as a whole or of all the different articles or sets of articles comprised therein, or
(b) if the hirer has selected the goods by reference to a catalogue, price list or advertisement which clearly stated the cash price of the goods as a whole or of all the different articles or sets of articles comprised therein.
Contents of hire-purchase agreements.
58.—(1) A hire-purchase agreement and any contract of guarantee relating thereto shall be made in writing and signed by the hirer and by or on behalf of all other parties to the agreement, and—
(a) a copy of the agreement shall be—
(i) handed personally to the hirer upon the making of the agreement, or
(ii) delivered or sent to the hirer by the owner within 10 days of the making of the agreement, and
(b) in the case of any contract of guarantee relating to the agreement, a copy of the guarantee and the agreement shall be—
(i) handed personally to the guarantor upon the making of the contract, or
(ii) sent within 10 days of the making of any contract by the F69[owner] to the guarantor.
(2) A hire-purchase agreement shall contain a statement of—
(a) the hire-purchase price,
(b) the cash price of the goods to which the agreement relates,
(c) the amount of each of the instalments by which the hire-purchase price is to be paid,
(d) the date, or the method of determining the date, upon which each instalment is payable,
(e) the number of instalments,
(f) the names and addresses of all parties to the agreement at the time of its making, and
(g) any costs or penalties to which the hirer will become liable for any failure by the hirer to comply with the terms of the agreement.
(3) A hire-purchase agreement shall contain a list of the goods to which the agreement relates sufficient to identify them.
(4) A hire-purchase agreement shall contain a notice which is at least as prominent as the rest of the contents of the agreement, in the terms specified in the Fifth Schedule.
(5) A hire-purchase agreement shall contain in respect of the cooling-off period a statement that the hirer—
(a) has a right to withdraw from the agreement without penalty if the hirer gives written notice to this effect to the F69[owner] within a period of 10 days of the date of receipt by the hirer of a copy of the agreement, or
(b) may indicate that he does not wish to exercise this right by signing a statement to this effect, this signature to be separate from, and additional to, the hirer’s signature in relation to any of the terms of the agreement.
(6) A hire-purchase agreement shall contain a statement to the effect that a hirer is obliged to give the owner information under section 69 as to the whereabouts of the goods to which the agreement relates.
(7) A hire-purchase agreement shall contain in a prominent position the words “Hire-purchase agreement”.
Annotations:
Amendments:
F69
Substituted (13.05.1996) by Consumer Credit Act, 1995 (Section 60) Regulations 1996 (S.I. No. 130 of 1996), reg. 2.
Enforceability.
59.—An owner shall not be entitled to enforce a hire-purchase agreement or any contract of guarantee relating thereto or any right to recover the goods from the hirer, and no security given by the hirer in respect of money payable under the hire-purchase agreement or given by a guarantor in respect of money payable under such contract of guarantee as aforesaid shall be enforceable against the hirer or guarantor by any holder thereof, unless the requirements specified in sections 57 and 58 have been complied with:
Provided that if a court is satisfied in any action that a failure to comply with any of the aforesaid requirements, other than section 58 (1), was not deliberate and has not prejudiced the hirer, and that it would be just and equitable to dispense with the requirement, the court may, subject to any conditions that it sees fit to impose, decide that the agreement shall be enforceable.
F70[
Regulations relating to form and content of hire-purchase agreements.
60.—(1) The Bank may make regulations amending section 58 or the Fifth Schedule with respect to the form or content of hire-purchase agreements.
(2) The Bank may exercise the power conferred by subsection (1) only after consulting with, or at the request of, the Director and only after obtaining the consent of the Minister for Finance.]
Annotations:
Amendments:
F70
Substituted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 35(1) and sch. 1 pt. 21 item 18, S.I. No. 160 of 2003, subject to transitional provision in s. 36 and sch. 3 para. 23(1).
Editorial Notes:
E41
Power pursuant to section exercised (8.08.1996) by Consumer Credit Act, 1995 (Section 60) (No. 2) Regulations 1996 (S.I. No. 246 of 1996).
E42
Power pursuant to section exercised (13.05.1996) by Consumer Credit Act, 1995 (Section 60) Regulations 1996 (S.I. No. 130 of 1996).
Implied terms as to title.
74.—(1) In every hire-purchase agreement, other than one to which subsection (2) applies, there shall be—
(a) 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, and
(b) an implied warranty that the goods are free, and will remain free until the time when the property is to pass, from any charge or encumbrance not disclosed to the hirer before the agreement is made and that the hirer shall have and enjoy quiet possession of the goods except so far as it may be disturbed by any person entitled to the benefit of any charge or encumbrance so disclosed.
(2) In a hire-purchase agreement, in the case of which there appears from the agreement or is to be inferred from the circumstances of the agreement an intention that the owner should transfer only such title as he or a third person may have, there shall be—
(a) an implied warranty that all charges or encumbrances known to the owner have been disclosed to the hirer before the agreement is made, and
(b) an implied warranty that neither—
(i) the owner, nor
(ii) in a case where the parties to the agreement intend that any title which may be transferred shall be only such title as a third person may have, that person, nor
(iii) anyone claiming through or under the owner or that third person otherwise than under a charge or encumbrance disclosed to the hirer before the agreement is made,
will disturb the hirer’s quiet possession of the goods.
(3) Nothing in this section shall prejudice the operation of any other enactment or rule of law whereby any condition or warranty is to be implied by a hire-purchase agreement.
Letting by description.
75.—(1) Where under a hire-purchase agreement goods are let by description, there shall be an implied condition that the goods will correspond with the description, and if under the agreement the goods are let by reference to a sample as well as a description it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.
(2) Goods shall not be prevented from being let by description by reason only that, being exposed for sale or hire, they are selected by the hirer.
(3) A reference to goods on a label or other descriptive matter accompanying goods exposed for sale or hire may constitute or form part of a description.
Implied undertakings as to quality or fitness.
76.—(1) Except as provided by this section and subject to the provisions of any other enactment, there is no implied condition or warranty as to the quality or fitness for any particular purpose of goods let under a hire-purchase agreement.
(2) Where the owner lets goods under a hire-purchase agreement in the course of a business, there is an implied condition that the goods are of merchantable quality within the meaning of section 14 (3) of the Sale of Goods Act, 1893, except that there shall be no such condition—
(a) as regards defects specifically drawn to the hirer’s attention before the agreement is made, or
(b) if the hirer examines the goods before the agreement is made, as regards defects which that examination ought to have revealed.
(3) Where the owner lets goods under a hire-purchase agreement in the course of a business and the hirer, expressly or by implication, makes known to the owner or the person by whom any antecedent negotiations are conducted, any particular purpose for which the goods are being hired, there shall be an implied condition that the goods supplied under the agreement are reasonably fit for that purpose, whether or not that is a purpose for which such goods are commonly supplied, except where the circumstances show that the hirer does not rely, or that it is unreasonable for him to rely, on the skill or judgment of the owner or that person.
(4) An implied condition or warranty as to quality or fitness for a particular purpose may be annexed to a hire-purchase agreement by usage.
(5) The foregoing provisions of this section apply to a hire-purchase agreement made by a person who in the course of a business is acting as agent for the owner as they apply to an agreement made by the owner, except where the owner is not letting in the course of a business and either the hirer knows that fact or reasonable steps are taken to bring it to the notice of the hirer before the agreement is made.
Samples.
77.—Where under a hire-purchase agreement goods are let by reference to a sample, there shall be an implied condition—
(a) that the bulk will correspond with the sample in quality, and
(b) that the hirer will have a reasonable opportunity of comparing the bulk with the sample, and
(c) that the goods will be free from any defect, rendering them unmerchantable within the meaning of section 14 (3) of the Sale of Goods Act, 1893, which would not be apparent on reasonable examination of the sample
.
Statements purporting to restrict rights of hirer.
78.—(1) Subsections (2) and (3) apply to any statement likely to be taken as indicating that a right or the exercise of a right conferred by or a liability arising by virtue of section 74, 75, 76 or 77 is restricted or excluded otherwise than under section 79.
(2) A person in the course of business shall not do any of the following things in relation to a statement to which subsection (1) refers:
(a) display on any part of any premises a notice that includes any such statement;
(b) publish or cause to be published an advertisement which contains any such statement;
(c) supply goods bearing, or goods in a container bearing, any such statement; or
(d) otherwise furnish or cause to be furnished a document including any such statement.
(3) For the purposes of this section a statement to the effect that goods will not be exchanged, or that money will not be refunded, or that only credit notes will be given for goods returned, shall be treated as a statement to which subsection (1) refers unless it is so clearly qualified that it cannot be construed as applicable in circumstances in which the hirer may be seeking to exercise a right conferred by any provision of a section mentioned in subsection (1).
(4) A person in the course of a business shall not furnish to a hirer goods bearing, or goods in a container bearing, or any document including, any statement, irrespective of its legal effect, which sets out, limits or describes rights conferred on a hirer or liabilities to the hirer in relation to the goods or any statement likely to be taken as such a statement, unless that statement is accompanied by a clear and conspicuous declaration that the contractual rights which the hirer enjoys by virtue of section 74, 75, 76 or 77 are in no way prejudiced by the relevant statement.
Exclusion of implied terms and conditions.
79.—(1) An express condition or warranty does not negative a condition or warranty implied by this Part unless inconsistent therewith.
(2) A term of a hire-purchase agreement or any other agreement exempting from all or any of the provisions of section 74 shall be void.
(3) A term of a hire-purchase agreement or any other agreement exempting from all or any of the provisions of section 75, 76 or 77 shall be void and shall not be enforceable unless it is shown that it is fair and reasonable.
(4) Subsection (3) shall not prevent a court from holding, in accordance with any rule of law, that a term which purports to exclude or restrict any of the provisions of section 75, 76 or 77 is not a term of the hire-purchase agreement.
(5) Any reference in this section to a term exempting from all or any of the provisions of any section of this Part is a reference to a term which purports to exclude or restrict, or has the effect of excluding or restricting, the operation of all or any of the provisions of that section, or the exercise of a right conferred by any provision of that section, or any liability of the owner for breach of a condition or warranty implied by any provision of that section.
Liability of persons conducting negotiations antecedent to hire-purchase agreements.
80.—Where goods are let under a hire-purchase agreement to a hirer, the person, if any, by whom the antecedent negotiations were conducted shall be deemed to be a party to the agreement and that person and the owner shall, jointly and severally, be answerable to the hirer for breach of the agreement and for any misrepresentations made by that person with respect to the goods in the course of the antecedent negotiations.
Application of sections 12 and 15 to 19 of Act of 1980 to hire-purchase agreements.
81.—Where goods are let under a hire-purchase agreement, section 12 (which relates to warranties for spare parts and servicing) of the Act of 1980 and sections 15 to 19 (which relate to guarantees and undertakings) of the Act of 1980 shall have effect as if a contract for the sale of goods were a hire-purchase agreement, the buyer were the hirer and the person by whom the antecedent negotiations were conducted were the seller.
Application of section 13 of Act of 1980 to hire-purchase of motor vehicles.
82.—Where a motor vehicle is let under a hire-purchase agreement, section 13 (which relates to an implied condition on sale of motor vehicles) of the Act of 1980 shall have effect as if a contract for sale were a hire-purchase agreement, the buyer were the hirer and the person by whom the antecedent negotiations were conducted were the seller, and the owner shall, jointly with that person and severally, be answerable to the hirer for breach of the implied condition.
Antecedent negotiations and representations.
83.—(1) In this Part “antecedent negotiations”, in relation to a hire-purchase agreement, means any negotiations or arrangements with the hirer whereby he was induced to make the agreement or which otherwise promoted the transaction to which the agreement relates; and any reference to the person by whom any antecedent negotiations were conducted is a reference to that person by whom the negotiations or arrangements in question were conducted or made in the course of a business carried on by him.
(2) (a) For the purposes of this Part any negotiations conducted or arrangements or representations made by a servant or agent, if conducted or made by him in the course of his employment or agency, shall be treated as conducted or made by his employer or principal; and anything received by a servant or agent, if received by him in the course of his employment or agency, shall be treated as received by his employer or principal.
(b) In this subsection “representations” includes any statement or undertaking, whether constituting a condition or a warranty or not, and references to making representations shall be construed accordingly.
PART VII
Consumer-Hire Agreements
Contents of consumer-hire agreements.
84.—(1) A consumer-hire agreement and any contract of guarantee relating thereto shall be made in writing and signed by the hirer and by or on behalf of all other parties to the agreement, and—
(a) a copy of the agreement shall be—
(i) handed personally to the hirer upon the making of the agreement, or
(ii) delivered or sent to the F71[hirer] by the owner within 10 days of the making of the agreement,
and
(b) in case of any contract of guarantee relating to the agreement, a copy of the guarantee and the agreement shall be—
(i) handed personally to the guarantor upon the making of the contract, or
(ii) sent within 10 days of the making of any contract by the F71[owner] to the guarantor.
(2) A consumer-hire agreement shall contain a statement of—
(a) the cash price of the goods to which the agreement relates,
(b) the amount of each instalment to be paid by the hirer under the agreement,
(c) the date, or the method of determining the date, upon which each instalment is payable,
(d) where the agreement is for a specified period—
(i) the number of instalments, and
(ii) the total amount payable under the agreement (including taxes),
(e) the name and address of the supplier of the goods to which the agreement relates,
(f) any additional costs to be paid,
(g) the cost of any early termination by the hirer of the agreement,
(h) the names and addresses of all parties to the agreement at the time of its making, and
(i) any costs or penalties to which the hirer will become liable for any failure by the hirer to comply with the terms of the agreement.
(3) A consumer-hire agreement shall contain a list of the goods to which the agreement relates sufficient to identify them.
(4) A consumer-hire agreement shall contain a notice, which is at least as prominent as the rest of the contents of the agreement, to the effect that the agreement is for the letting of goods which remain the property of the owner.
(5) A consumer-hire agreement shall contain, in respect of the cooling-off period, a statement that the hirer—
(a) has a right to withdraw from the agreement without penalty if the hirer gives written notice to this effect to the F71[owner] within a period of 10 days of the date of receipt by the hirer of a copy of the agreement, or
(b) may indicate that he does not wish to exercise this right by signing a statement to this effect, this signature to be separate from, and additional to, the hirer’s signature in relation to any of the terms of the agreement.
(6) A consumer-hire agreement shall contain a statement to the effect that a hirer is obliged to give the owner information under section 91 as to the whereabouts of the goods to which the agreement relates.
(7) A consumer-hire agreement shall contain in a prominent position the words “Consumer-hire agreement”.
Annotations:
Amendments:
F71
Substituted (13.05.1996) by Consumer Credit Act, 1995 (Section 86) Regulations 1996 (S.I. No. 131 of 1996), reg. 2.
Enforceability.
85.—An owner shall not be entitled to enforce a consumer-hire agreement or any contract of guarantee relating thereto or any right to recover the goods from the hirer, and no security given by the hirer in respect of money payable under the consumer-hire agreement or given by a guarantor in respect of money payable under such contract of guarantee as aforesaid shall be enforceable against the hirer or guarantor by any holder thereof, unless the requirements specified in section 84 have been complied with:
Provided that if a court is satisfied in any action that a failure to comply with any of the aforesaid requirements, other than section 84 (1), was not deliberate and has not prejudiced the hirer, and that it would be just and equitable to dispense with the requirement, the court may, subject to any conditions that it sees fit to impose, decide that the agreement shall be enforceable.
F72[
Regulations relating to form and content of consumer-hire agreements.
86.—(1) The Bank may make regulations amending section 84 with respect to the form or content of consumer-hire agreements.
(2) The Bank may exercise the power conferred by subsection (1) only after consulting with, or at the request of, the Director and only after obtaining the consent of the Minister for Finance.]
Annotations:
Amendments:
F72
Substituted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 35(1) and sch. 1 pt. 21 item 19, S.I. No. 160 of 2003, subject to transitional provision in s. 36 and sch. 3 para. 23(1).
Editorial Notes:
E43
Power pursuant to section exercised (13.05.1996) by Consumer Credit Act, 1995 (Section 86) Regulations 1996 (S.I. No. 131 of 1996).
Obligation on owners to comply with sections 84 and 86.
87.—An owner who is a party to a consumer-hire agreement shall ensure that the contents of the agreement comply with section 84 and any regulations made under section 86.
Application of sections 75 to 83 to consumer-hire agreements.
88.—Where goods are let under a consumer-hire agreement, the provisions of sections 75 to 83 shall apply to the agreement as if it were a hire-purchase agreement and in every such agreement there is an implied warranty that the goods are free, and will remain free, from any charge or encumbrance not disclosed, before the agreement is made, to the person taking the goods and that that person will enjoy quiet possession of the goods except so far as it may be disturbed by any person entitled to the benefit of any charge or encumbrance so disclosed.
Right of hirer to determine consumer-hire agreement.
89.—(1) A hirer shall, at any time, be entitled to determine a consumer-hire agreement by giving notice of termination to the owner or any person entitled to receive the sums payable under the agreement.
(2) Where a notice is given under subsection (1) the agreement shall be determined after the expiration of the period of 3 months (or such lesser period as may be specified in the agreement) from the date of receipt of the notice.
Hirer to take reasonable care of goods.
90.—A hirer shall take all reasonable care of goods which are let to him under a consumer-hire agreement and shall be liable to the owner if he fails to take such care.
Duty of hirer to give information as to whereabouts of goods.
91.—A hirer shall, within 10 days of receipt of a request in writing from the owner of the goods let to the hirer under a consumer-hire agreement, inform the owner where the goods are at the time when the information is given or, if it is sent by post, at the time of posting.