Hire-Purchase Act 1969 · 2020 Revised Edition · Part 3 · Implied Terms
6F. Special provisions as to conditional sale agreements
Feedback & supportSection 11(3) of the Sale of Goods Act 1979 (whereby in certain circumstances a breach of a condition in a contract of sale is treated only as a breach of warranty) shall not apply to a conditional sale agreement where the buyer deals as consumer.
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;
A breach of a condition (whether express or implied) to be fulfilled by the seller under any such agreement shall be treated as a breach of warranty, and not as grounds for rejecting the goods and treating the agreement as repudiated, if (but only if) it would have fallen to be so treated had the condition been contained or implied in a corresponding hire-purchase agreement as a condition to be fulfilled by the owner.
hire-purchase agreement
“hire-purchase agreement” means an agreement, other than a conditional sale agreement, under which —(a)goods are bailed in return for periodical payments to the hirer; and(b)the property in the goods will pass to the hirer if the terms of the agreement are complied with and one or more of the following occur:(i)the exercise of an option to purchase by the hirer;(ii)the doing of any other specified act by any party to the agreement;(iii)the happening of any other specified event;
In subsection (2), “corresponding hire-purchase agreement” means a hire‑purchase agreement relating to the same goods as the conditional sale agreement and made between the same parties and at the same time and in the same circumstances and, as nearly as may be, in the same terms as the conditional sale agreement.
conditional sale agreement
“conditional sale agreement” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the owner (notwithstanding that the hirer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in that agreement are fulfilled;