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Hire-Purchase Act, 1974 (NRCD 292)

Section 13—Implied Terms.
(1) Notwithstanding any agreement to the contrary, in every hire-purchase or conditional sale agreement there shall be implied—
(a) a term that the hirer or buyer shall have and enjoy quiet possession of the goods;
(b) a term that the goods shall be free from any charge or encumbrance in favour of any third party at the time when the property is to pass;
(c) a term that the owner or seller will have a right to sell the goods at the time when the property is to pass.
(2) Where the hirer or buyer, whether expressly or by necessary implication—
(a) has made known to the owner or seller, or to a servant or agent of the owner or seller, the particular purpose for which the goods are required; or
(b) in the course of any antecedent negotiations has made that purpose known to any person by whom those negotiations were conducted, or to a servant or agent of such a person,
there shall, subject to the provisions of section 14, be implied a term that the goods will be reasonably fit for that purpose.
(3) A breach of a term specified in this section by the owner or seller shall give the hirer or buyer a right to damages in respect of such breach, or to such other remedy as the court may think appropriate.

Subject : Hire-Purchase Trading  

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