Hire-Purchase Act 1969 · 2020 Revised Edition · Part 5 · Guarantors
22. Rights of guarantor against owner
Feedback & supportA guarantor under this Part may at any time secure his discharge by paying the amount due to the owner from the hirer.
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;
Upon such payment being made, the guarantor is entitled to —
sue the hirer in the name of the owner for any breach of the hirer’s obligations under the regulated agreement subject to providing the owner with a suitable indemnity for costs or sue in his own name if he takes a legal assignment of the debt under the regulated agreement; and
insist upon the transfer to himself of all securities taken by the owner from the hirer to secure performance of the hirer’s obligations.
A guarantor is entitled in the event of any claim being made against him by the owner on the guarantee to avail himself of any set‑off or counterclaim which the hirer may possess against the owner.
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;
Unless otherwise agreed by the parties, a guarantor who exercises his rights under this section shall pay to the owner any reasonable costs incurred by the owner (including legal expenses) in preparing, drawing, stamping or registering the indemnity, assignment or transfer, as the case may be.