Hire-Purchase Act 1969 · 2020 Revised Edition · Part 5 · Guarantors
20. Liability of guarantor and his rights on repossession
Feedback & supportSubject to this Act, a guarantor shall not, by reason of the operation of this Act, be discharged from liability under his guarantee.
guarantor
“guarantor” means a person who has guaranteed the performance by a hirer of all or any of his obligations under a hire-purchase agreement or a conditional sale agreement but does not include the dealer or a person engaged, at the time of the giving of the guarantee, in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement;
The liability of a guarantor shall continue notwithstanding that the owner has, pursuant to the provisions of a regulated agreement, taken possession of the goods comprised in the regulated agreement (and whether or not the goods have been redelivered to the hirer pursuant to this Act).
owner
“owner” means a person by whom goods are bailed to a hirer under a hire‑purchase agreement or a conditional sale agreement and includes a person whom the owner’s rights or liabilities under the agreement have passed by assignment or by operation of law;
Nothing in subsection (2) shall operate to preserve the liability of a guarantor where the owner and the hirer have entered into a new agreement in respect of the goods comprised in any regulated agreement.
hirer
“hirer” means the person who takes or has taken goods from an owner under a hire‑purchase agreement or a conditional sale agreement and includes a person to whom the hirer’s rights or liabilities under the agreement have passed by assignment or by operation of law;
No guarantor shall be liable to any further or other extent than the hirer, the performance of whose obligations he has guaranteed.
Nothing in this Act shall affect any agreement by the guarantor binding him to the performance of any obligation that is not one of the obligations imposed on the hirer under the regulated agreement in respect of which the guarantee is given.
regulated agreement
“regulated agreement” means a hire-purchase agreement or a conditional sale agreement which relates to the goods specified in the First Schedule, but does not include any agreement in which the hirer is engaged in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement;
Where goods have been delivered to the hirer pursuant to a regulated agreement and the owner subsequently takes possession of the goods, any guarantor who has paid any moneys to the owner in accordance with his guarantee shall have the like right in like manner to recover those moneys as he would have had if he had been the hirer of the goods.
goods
“goods” includes any replacement or renewal by the hirer of any part or parts of any goods and any accessory added or addition made to any goods by the hirer during the period of the hiring;
For the purpose of calculating the amount received by the owner, all moneys paid and the value of any other consideration provided by or on behalf of the hirer shall be deemed to have been paid or provided by the guarantor.
No moneys shall be recovered by the guarantor in excess of the moneys actually paid by him.