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 hire-purchase 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 anyone 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 the 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:

(a) The owner of the goods was not aware of the defect in the goods, for which the hire-purchase contract was 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 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 based on a sample, the owner of the goods shall be deemed to have assured the fact that all of such goods match 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 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.