Hire-Purchase Act 1964

JurisdictionUK Non-devolved
Citation1964 c. 53
(1) This section applies where a motor vehicle has been bailed or (in Scotland) hired under a hire-purchase agreement, or has been agreed to be sold under a conditional sale agreement, and, before the property in the vehicle has become vested in the debtor, he disposes of the vehicle to another person.(2) Where the disposition referred to in subsection (1) above is to a private purchaser, and he is a purchaser of the motor vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement”) that disposition shall have effect as if the creditor’s title to the vehicle has been vested in the debtor immediately before that disposition.(3) Where the person to whom the disposition referred to in subsection (1) above is made (the “original purchaser”) is a trade or finance purchaser, then if the person who is the first private purchaser of the motor vehicle after that disposition (the “first private purchaser”) is a purchaser of the vehicle in good faith without notice of the relevant agreement, the disposition of the vehicle to the first private purchaser shall have effect as if the title of the creditor to the vehicle had been vested in the debtor immediately before he disposed of it to the original purchaser.the disposition by which the first private purchaser becomes a purchaser of the motor vehicle in good faith without notice of the relevant agreement is itself a bailment or hiring under a hire-purchase agreement, andthe person who is the creditor in relation to that agreement disposes of the vehicle to the first private purchaser, or a person claiming under him, by transferring to him the property in the vehicle in pursuance of a provision in the agreement in that behalf,notwithstanding anything in F3section 21 of the Sale of Goods Act 1979 (sale of goods by a person not the owner) , butwithout prejudice to the provisions of the Factors Acts (as defined by F4section 61(1) of the said Act of 1979 or of any other enactment enabling the apparent owner of goods to dispose of them as if he were the true owner.that trade or finance purchaser, orany other trade or finance purchaser who becomes a purchaser of the vehicle and is not a person claiming under the first private purchaser,that the vehicle was bailed or (in Scotland) hired under a hire-purchase agreement, or was agreed to be sold under a conditional sale agreement andthat a person (whether a party to the proceedings or not) became a private purchaser of the vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevent agreement”) ,(2) It shall be presumed for those purposes, unless the contrary is proved, that the disposition of the vehicle to the person referred to in subsection (1) (b) above (the “relevant purchaser”) was made by the debtor.that the debtor disposed of the vehicle to a private purchaser purchasing in good faith without notice of the relevant agreement, andthat the relevant purchaser is or was a person claiming under the person to whom the debtor so disposed of the vehicle.that the person who, after the disposition of the vehicle to the original purchaser, first became a private purchaser of the vehicle was a purchaser in good faith without notice of the relevant agreement, andthat the relevant purchaser is or was a person claiming under the original purchaser.(5) Without prejudice to any other method of proof, where in any proceedings a party thereto admits a fact, that fact shall, for the purposes of this section, be taken as against him to be proved in relation to those proceedings.goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, andthe exercise of an

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