CHAPTER 14
HIRE PURCHASE ACT

[PRINCIPAL LEGISLATION]

ARRANGEMENT OF SECTIONS

   Section

Title

   1.   Short title.

   2.   Interpretation.

   3.   Application of the Act.

   4.   Establishment of Registry.

   5.   Hire purchase agreements to be registered.

   6.   Requirements relating to hire purchase agreements.

   7.   Avoidance of certain provisions.

   8.   Conditions and warranties to be implied in hire purchase agreements.

   9.   Duty of hirer to give information as to whereabouts of goods.

   10.   Removal of goods from Tanzania.

   11.   Power of Court to allow goods to be removed.

   12.   Duty of owner to supply documents and information.

   13.   Appropriation of payments where more than one agreement.

   14.   Right of hirer to determine hire purchase agreement.

   15.   Hirer to be entitled to finalise agreement at any time.

   16.   Evidence of adverse detention in action by owner to recover possession of goods.

   17.   Restriction of owner's right to recover possession of goods otherwise than by action.

   18.   Powers of Court in certain actions by owner to recover possession of goods.

   19.   Owner to account for proceeds of sale.

   20.   Effect of postponement of an order for specific delivery of goods to owner.

   21.   Successive hire purchase agreements between same parties.

   22.   Hirer's refusal to surrender goods not to be conversion in certain cases.

   23.   Limitation of owner's right to enforce certain provisions of agreement.

   24.   Agreement binding on liquidator or trustee of owner.

   25.   Insolvency or bankruptcy of hirer.

   26.   Negotiable instruments.

   27.   Service of notice or document on owner or hirer.

   28.   False information.

   29.   Power to make rules.

CHAPTER 14
THE HIRE PURCHASE ACT

An Act to make provision for the regulation of certain hire purchase agreements and for related matters.

[1st November, 1966]
[G.N. No. 312 of 1966]

Act No. 22 of 1966

1.   Short title

   This Act may be cited as the Hire Purchase Act.

2.   Interpretation

   (1) In this Act, unless the context otherwise requires–

   "buyer", "delivery", "goods", "property", "sale", "seller" and "warranty" have the meaning respectively assigned to them by the Sale of Goods Act *;

   "contract of guarantee" in relation to any hire purchase agreement, means a contract made at the request, express or implied, of the hirer to guarantee the performance of the hirer's obligations under the hire purchase agreement, and the expression "guarantor" shall be construed accordingly;

   "court" means a court of competent jurisdiction;

   "hire purchase agreement" means an agreement for the bailment of goods under which the bailee may buy the goods or under which the property in the goods will or may pass to the bailee and where by virtue of two or more agreements, none of which by itself constitutes a hire purchase agreement, there is a bailment of goods and either the bailee may buy the goods or the property in the goods will or may pass to the bailee, the agreement shall be treated for the purposes of this Act, as a single agreement made at the time when the last of the agreements was made;

   "hire purchase price" means the total sum payable by the hirer under a hire purchase agreement in order to complete the purchase of goods to which the agreement relates exclusive of any sum payable as a penalty or as a compensation or as damages for a breach of the agreement, but including any sum payable by the hirer by way of a deposit or other initial payment or credited or to be credited to the hirer under the agreement on account of any such deposit or payment whether that sum is to be or has been paid to the owner or to any other person or is to be or has been discharged by a payment of money or by the transfer or delivery of goods or by any other means;

   "hirer" means the person who takes or has taken goods from an owner under a hire purchase agreement and includes a person to whom the hirer's rights or liabilities under the agreement have passed by assignment or by operation of law;

   "Minister" means the Minister responsible for matters relating to commerce;

   "owner" means the person who lets or has let goods to a hirer under a hire purchase agreement and includes a person to whom the owner's property in the goods or any of the owner's rights or liabilities under the agreement has passed by assignment or by operation of law.

   (2) Any reference in this Act to taking possession of goods comprised in a hire purchase agreement does not include a taking of possession by the owner as a result of the voluntary return of such goods by the hirer, but does include a taking of possession by the owner of such goods pursuant to an order of a court and a return of goods after a notice has been served on the hirer pursuant to the provisions of this Act.

3.   Application of Act

   This Act shall apply to and in respect of all hire purchase agreements entered into after the commencement of this Act under which the hire purchase price does not exceed the sum of sixty thousand shillings.

4.   Establishment of Registry

   (1) There is hereby established a Registry of Hire Purchase, in this Act to be called the "Registry" for the purpose of registering hire purchase agreements.

   (2) For conducting the business of the Registry the Minister may, by notice in the Gazette, appoint a Registrar of Hire Purchase and as many Assistant Registrars of Hire Purchase, in this Act referred to as "the Registrar" and "Assistant Registrar" respectively, as the Minister may think fit.

   (3) Subject to the directions of the Registrar an Assistant Registrar, shall have all the powers and perform all the duties and be subject to all the obligations of the Registrar.

5.   Hire purchase agreements to be registered

   (1) Every hire purchase agreement to which this Act applies shall be delivered for registration to the Registrar.

   (2) The Registrar shall, on payment of the prescribed fee, register any hire purchase agreement delivered in accordance with subsection (1) of this section unless–

   (a)   the agreement being liable to stamp duty is not duly stamped; or

   (b)   the agreement being made in a language other than Swahili is not accompanied by a Kiswahili translation which the Registrar is satisfied as true and accurate.

   (3) On registration of a hire purchase agreement the Registrar shall deliver to the owner a certificate of registration which shall be accepted by the court as prima facie proof of the facts stated.

   (4) Unless the hire purchase agreement shall have first been registered in accordance with the provisions of this section–

   (a)   no person shall be entitled to enforce the agreement against the hirer or to enforce any contract of guarantee relating to the agreement, and the owner shall not be entitled to enforce any right to recover the goods from the hirer; and

   (b)   no security given by the hirer in respect of money payable under the agreement or given by a guarantor in respect of money payable under such a contract of guarantee shall be enforceable against the hirer or the guarantor by any holder.

   (5) The Registrar shall be permitted on such terms and subject to such conditions and limitations as may be prescribed to disclose the identity of any property subject to or the parties to, a registered hire purchase agreement.

6.   Requirements relating to hire purchase agreements

   (1) Before any hire purchase agreement is entered into in respect of any goods, the owner shall state in writing to the prospective hirer, otherwise than in the note or memorandum of the agreement, a price at which the goods may be purchased for cash, in this section referred to as the "cash price":

   Provided that this subsection shall be deemed to have been sufficiently complied with–

   (a)   if the hirer has inspected the goods or like goods and at the time of inspection, tickets or labels were attached to or displayed with the goods, clearly stating the cash price, either of the goods as a whole or of all the different articles or sets of articles comprised in the goods; or

   (b)   if the hirer has selected the goods by reference to a catalogue, price list or advertisement, which clearly stated the cash price either of the goods as a whole or of all the different articles or sets of articles comprised in the goods.

   (2) An owner shall not be entitled to enforce a hire purchase agreement or any contract of guarantee relating to such agreement or any right to recover the goods from the hirer, and no security given by the hirer in respect of money payable under the hire purchase agreement or given by a guarantor in respect of money payable under such a contract of guarantee shall be enforceable against the hirer or guarantor by any holder, unless the requirement specified in subsection (1) has been complied with, and–

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