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Hire Purchase and Leasing (Implied terms of HPA (Section 74 (Owners Title)…
Hire Purchase and Leasing
Hire Purchase
When you lease a product from the owner and can use it while paying agreed upon sums at agreed upon intervals. You do not own the product until the last payment has been made
Nature
HP is a bailment
The bailee may buy the goods
There is an option to buy the goods
Can last from a few months to a few years
Termination
Section 63
When hirer terminates the HPA, he must either buy the goods or return
Consumer Credit Act (1995)
section 57
Notification of cash price
Section 58
All details of the HPA in writing
Section59
Owner can't enforce agreement until sections 57 &58 are completed
Implied terms of HPA
Section 74
Owners Title
Section 75
Description of goods
Section 76
Merchantable quality & fit for purpose
Section77
Sale by sample
Section 79
Exclusions of implied terms
Restriction on owners rights
Section 62
Entry to premises
Section 64
Recovery of goods
Section 66
Courts descretion
Transfer of ownership
Section 70
Open or public market
3rd Party bought in good faith & didn't know of the lack of title of goods
Leasing
Short or Long term
Hirer will never own the goods
Financial or operating leases