Singapore legislation

Section 21

of Hire-Purchase Act 1969

Section 21

Guarantor not to be bound in certain cases

(1)

Where a guarantor of the performance of the obligations of the hirer under a regulated agreement enters into an agreement binding the guarantor —

(a)

to pay to the owner an aggregate sum which is larger than the balance originally payable under the agreement; or

(b)

to perform an obligation in respect of goods other than the goods comprised in the regulated agreement,the agreement so entered shall be void unless the agreement is executed by the guarantor in the presence of a solicitor instructed and employed independently of the owner and the solicitor certifies in writing upon the agreement —

(c)

that he is satisfied that the guarantor understands the true purport and effect of the agreement; and

(d)

that the guarantor has executed the agreement in his presence.

(2)

A solicitor shall not give a certificate in respect of an agreement under subsection (1) unless —

(a)

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;

(b)

he has examined the guarantor touching his knowledge of the agreement;

(c)

he is satisfied that the guarantor understands the true purport and effect of the agreement; and

(d)

the guarantor has freely and voluntarily executed the agreement in his presence.

(3)

Failure by a solicitor to comply with subsection (2) in respect of a certificate shall not invalidate the certificate.

Read in full context — Hire-Purchase Act 1969 →