Hire-Purchase Act · 2024 Revised Edition · Part · Guarantors
21. Guarantor not to be bound in certain cases
Official textFrom Attorney General's Chambers, unchanged
Where a guarantor of the performance of the obligations of the hirer under a hire-purchase agreement enters into an agreement binding the guarantor —
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, 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;
to pay to the owner an aggregate sum which is larger than the balance originally payable under the agreement; or
to perform an obligation in respect of goods other than the goods comprised in the hire-purchase agreement, the agreement so entered shall be void unless the agreement is executed by the guarantor in the presence of an advocate and solicitor instructed and employed independently of the owner and the advocate and solicitor certifies in writing upon the agreement that —
he is satisfied that the guarantor understands the true purport and effect of the agreement; and
the guarantor has executed the agreement in his presence.
Hire-Purchase
An advocate and solicitor shall not give a certificate in respect of an agreement under subsection (1) unless —
he has read over and explained the agreement to the guarantor or has caused the agreement to be read over and explained to the guarantor in his presence;
he has examined the guarantor touching his knowledge of the agreement;
he is satisfied that the guarantor understands the true purport and effect of the agreement; and
the guarantor has freely and voluntarily executed the agreement in his presence.
Failure by an advocate and solicitor to comply with subsection (2)
in respect of a certificate shall not invalidate the certificate.
Terms defined in s 2
goods
Defined · s 2“goods” includes any replacement or renewal by the hirer of any part or parts thereof and any accessories added or additions made thereto by the hirer during the period of the hiring;
guarantor
Defined · s 2“guarantor” means a person who has guaranteed the performance by a hirer of all or any of his obligations under a hire-purchase 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;
hire-purchase agreement
Defined · s 2“hire-purchase agreement” includes a letting of goods with an option to purchase and an agreement for the purchase of goods by instalments (whether the agreement describes the instalments as rent, hire or otherwise), but does not include any agreement — (a) whereby the property in the goods comprised therein passes at the time of the agreement or upon or at any time before delivery of the goods; or (b) under which the person by whom the goods are being hired or purchased is a person who is engaged in the trade or business of selling goods of the same nature or description as the goods comprised in the agreement;
hirer
Defined · s 2“hirer” means the person who takes or has taken goods from an owner under a hire-purchase agreement and includes a person to whom the rights or liabilities of the hirer under the agreement have passed by assignment or by operation of law;
owner
Defined · s 2“owner” means a person who lets or has let goods to a hirer under a hire-purchase agreement and includes a person to whom the rights or liabilities of the owner under the agreement have passed by assignment or by operation of law;