Clause 15

Subject to this section, an owner shall not exercise any power of taking possession of goods comprised in a hire-purchase agreement arising out of any breach of the agreement relating to the payment of instalments until he has served on the hirer a notice, in writing, in the form set out in the Fourth Schedule to this Act and the period fixed by the notice has expired, which shall not be less than twenty-one days after the service of the notice.

An owner need not comply with subsection (1) of this section if there are reasonable grounds for believing that the goods comprised in the hire-purchase agreement will be removed or concealed by the hirer contrary to the provisions of the agreement, but the onus of proving the existence of those grounds lies upon the owner.

Within fourteen days after the owner has taken possession of goods that were comprised in a hire-purchase agreement he shall serve on the hirer and every guarantor of the hirer a notice, in writing, in the form set out in the Fifth Schedule to this Act.

Where the owner takes possession of goods that were comprised in a hire-purchase agreement he shall deliver or cause to be delivered to the hirer personally a document acknowledging receipt of the goods or if the hirer is not present at that time send to the hirer immediately after taking possession of the goods a document acknowledging receipt of the goods.

The document acknowledging receipt of the goods, required under subsection (4) of this section shall set out a short description of the goods and the date on which, the time at which and the place where the owner took possession of the goods.

If the notice required by subsection (3) of this section is not served the rights of the owner under the hire-purchase agreement shall thereupon cease and determine; but if the hirer exercises his rights under this Act to recover the goods so taken possession of, the agreement shall have the same force and effect in relation to the rights and liabilities of the owner and the hirer as it would have had if the notice had been duly given.