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HIRE-PURCHASE ACT (NORTHERN IRELAND) 1966 - SECT 38

Restriction on orders transferring owner's title.

38.(1) While the operation of an order for the specific delivery of goods to
the owner is postponed, the hirer shall, subject to the following provisions
of this section, be deemed to be a bailee of the goods under and on the terms
of the agreement.

(2) No further sum shall be or become payable by the hirer or a guarantor on
account of the unpaid balance of the hire-purchase price, except in accordance
with the terms of the order.

(3) The court may make such further modification of the terms of the
agreement, and of any contract of guarantee relating thereto, as the court
considers necessary having regard to the variation of the terms of payment.

(4) If, while the operation of the order is postponed, the hirer or a
guarantor fails to comply with any condition of the postponement, or with any
term of the agreement as varied by the court, or wrongfully disposes of the
goods, the owner shall not take any civil proceedings against the hirer or
guarantor otherwise than by making an application to the court by which the
order was made but, in the case of a breach of a condition relating to the
payment of the unpaid balance of the hire-purchase price, it shall not be
necessary for the owner to apply to the court for leave to execute the order
unless the court has so directed.

(5) When the unpaid balance of the hire-purchase price has been paid in
accordance with the terms of the order, the owner's title to the goods shall
vest in the hirer.


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© 1966 Crown Copyright

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