Sri Lanka Consolidated Acts

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Consumer Credit Act (No. 29 of 1982) - Sect 4

Warranties and conditions,

4.
(1) In every hire-purchase agreement there shall be
(a) an implied warranty that, the hirer shall have and enjoy quiet possession of the goods;
(b) an implied condition on the part of the owner that he will have a right to sell the goods at the time when the property is to pass ;
(c) an implied warranty 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.
(2) In every hire-purchase agreement there shall be an implied condition that the goods will be of merchantable quality but such a condition shall not be implied
(a) as regards defects of which the owner could not reasonably have been aware at the time the agreement was made;
(b) where the hirer has examined the goods or a sample thereof, as & regards defects which the examination ought to have revealed ;
(c) as regards defects specified in the agreement whether referred to therein as defects or by any other description to the like effect;
(d) if the goods are second-hand goods and the agreement contains a statement to that effect.
(3) Where the hirer whether expressly in writing or by implication has made known to the owner the particular purpose for which the goods are required, there shall be an implied condition that the goods will be reasonably fit for such purpose.
(4) Where the goods are let or agreed to be sold under a hire-purchase agreement by reference to a sample there shall be
(a) an implied condition on the part of the owner that the bulk will correspond with the sample in quality ; and
(b) an implied condition on the part of the owner that the hirer will have a reasonable opportunity of comparing the bulk with the sample.
(5) Where the goods are let or agreed to be sold under a hire-purchase agreement by description there shall be an implied condition that the goods will correspond with the description; and if the goods are let or agreed to be sold under the agreement by reference to a sample as well as by description it shall not be sufficient that the bulk of the goods corresponds with the sample if the goods do not correspond with the description.
(6) An owner shall not be entitled to rely on any provision in a hire-purchase agreement excluding or modifying the condition set out in subsection (3) unless he proves that before the agreement was made the provision was brought to the notice of the hirer and its effect made blear to him.

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