Section 627
Consequences Of Formation Of Hire-purchase Contract
(1)
Notwithstanding anything contained in the contract, the following
terms and conditions shall be deemed to be inherent in the hirepurchase
contract concluded between the parties:
(a) The hirer has the right of uninterrupted possession
and use of the hired goods,
(b) The goods are free from any type of charge or
claim of any one at the time of transfer of the
goods by the owner to the hirer,
(c) The owner of the goods has assured that the hirer
will have a reasonable opportunity to compare
such goods with the sample,
(d) The owner of the goods has the right to sell the
hired goods at the time of the transfer of such
goods by him to the hirer,
(e) The goods referred to in clause (a) are of
satisfactory quality at the time of the transfer of
goods,
(f) If the hirer has informed the owner of the goods
that he or she is hiring the goods for any particular
purpose, the owner of the goods guarantees that
such goods or quality thereof will be appropriate
for that purpose.
(2) Notwithstanding anything contained in clause (e) of
sub-section (1), the owner of the goods shall not be liable for the
quality of the goods in any of the following circumstances:
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(a) The owner of the goods was not aware of the
defect in the goods, for which the hire-purchase
contract has been made at the time of conclusion
of such contract,
(b) The hire-purchase contract itself has a stipulation
about the defect in the quality of the goods,
(c) If the hirer has collected and examined a sample
of the goods and the quality of the goods matches
with such a sample,
(d) The hire-purchase contract is concluded with
regard to any second-hand goods and that matter is
specified in the contract.
(3) If the hirer takes any goods on hire on the basis of a
sample, the owner of the goods shall be deemed to have assured of
the fact that all of such goods match with the sample.
(4) If the description of any goods or quality thereof is
specified in a contract concluded under this Chapter, the owner of
the goods shall be deemed to have assured of the fact that such
goods or quality thereof shall be as specified in the contract.
Provided that if the sample is also specified in the contract,
the matching of the quality of such goods with that of the sample
shall not suffice, and it shall be matched with the description of the
contract at the time of transferring the whole of the goods.