Schedule 4., Part I, paragraph 35(1)

In every hire-purchase agreement, other than one to which subsection (2) below applies, there is— an implied condition on the part of the creditor that he will have a right to sell the goods at the time when the property is to pass ; and an implied warranty that— the goods are free, and will remain free until the time when the property is to pass, from any charge or encumbrance not disclosed or known to the person to whom the goods are bailed or (in Scotland) hired before the agreement is made, and that person will enjoy quiet possession of the goods except so far as it may be disturbed by any person entitled to the benefit of any charge or encumbrance so disclosed or known.

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Source: legislation.gov.uk · retrieved 2026-07-30