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ACTS SUPPLEMENT No. 2 |
12th June, 2009. |
ACTS SUPPLEMENT to The Uganda Gazette No. 27 Volume CII dated 12th June, 2009. Printed by UPPC, Entebbe, by Order of the Government. |
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Hire Purchase Act THE HIRE PURCHASE ACT, 2009. |
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ARRANGEMENT OF SECTIONS. Part I—Preliminary. Commencement. Application. Interpretation. Part II—Hire Purchase Agreements. Execution of hire purchase agreement. Requirements relating to hire purchase agreements. Interest rate. Avoidance of certain provisions in a hire purchase agreement. Implied conditions and warranties. Part III—Termination and Completion of Hire Purchase Agreement. Termination by hirer. Completion of purchase of goods by hirer. Part IV—Recovery of Possession By Owner. Owner not to engage in deceptive conduct. Communication between the parties. Owner not to disclose to third party information in connection with payment or repossession. Owner not to charge late charges greater than debt. Recovery of possession where two thirds of price paid. Provisions where a suit is instituted. Where order for delivery of goods is postponed. |
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Act 3 Hire Purchase Act 2009 Section. Part V—Licensing of Hire Purchase Business.
Part VI—Miscellaneous.
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schedule Currency point. |
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THE HIRE PURCHASE ACT, 2009. An Act to provide for the regulation and registration of hire purchase agreements and the licensing of persons carrying on hire purchase business and for related purposes. Date of Assent: 8th May, 2009. Date of Commencement: 12th June, 2009. Be it enacted by Parliament as follows: Part I—Preliminary.
This Act shall come into force on a date appointed by the Minister by statutory instrument.
This Act applies to hire purchase agreements entered into after the coming into force of this Act.
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Act 3 Hire Purchase Act 2009 “bailment” means a delivery of goods or movable personal property by one person to another in trust for the execution of a special object upon or in relation to goods beneficial either to the bailor or bailee or both and upon a contract, express or implied, to perform the trust and carry out the object and either redeliver the goods to the bailor or dispose of the goods in conformity with the purpose of the trust; “cash price” means the price at which a creditor would have sold the goods to the buyer for cash on the date of the hire purchase agreement; “contract of guarantee“, in relation to a hire purchase agreement, means a written contract, made at the express or implied request of the hirer, to guarantee the performance of the hirer’s obligations under the hire purchase agreement, and “guarantor” shall be construed accordingly; “currency point” has the meaning assigned to it in the Schedule; “delivery” means voluntary transfer of possession from one person to another; “goods” includes all chattels, personal, other than things in action and money and all emblements, industrial growing crops and things attached to or forming part of land which are agreed to be severed before sale or under the contract of sale; “guarantor” means a person who agrees to perform the hirer’s obligations in case the hirer defaults under a hire purchase agreement; “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 hirer; “hire purchase business” means a business of entering into hire purchase agreements; |
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“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, including the cash price, interest, financial charges, and a deposit or other initial payment; “hirer” means the person who takes 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 operation of law; “interest” means prime lending rate of interest set by the Central Bank; “licence” means a licence issued to carry on hire purchase business under this Act; “licensed person” means a person licensed under Part V to carry on hire purchase business, and includes a company to which 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; “Minister” means the Minister responsible for trade; “owner” means the person who hires 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 operation of law; “satisfactory quality” means the state and condition of goods; and the following, among others, are aspects of the quality of goods—
kind in question are commonly supplied;
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Act 3 Hire Purchase Act 2009 “warranty” means an agreement with reference to goods which are the subject of a hire purchase agreement, but collateral to the main purpose of the agreement, the breach of which gives a right to a claim for damages, but not to a right to reject the goods and treat the agreement as repudiated.
Part II—Hire Purchase Agreements.
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Act 3 Hire Purchase Act 2009
referred to in subsection (4); or
and which he or she knows to be false or does not believe to be true, commits an offence and is liable on conviction to a fine not exceeding one hundred currency points or imprisonment not exceeding one year or both.
of his or her inspection, tickets or labels were attached to or displayed with the goods, 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; or
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.
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Act 3 Hire Purchase Act 2009
to the agreement; and
executed by a guarantor;
to which the agreement relates;
hire purchase price is to be paid and the date, or the mode of determining the date upon which each instalment is payable;
and
commenced.
relating to the rights of the hirer which is at least as prominent as the rest of the contents of the agreement;
registered post by the owner to the hirer within six weeks after the date of the agreement or, if the parties agree, the hirer may collect the agreement from the premises of the owner; and
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agreement.
Interest rates in relation to hire purchase of goods under a hire purchase agreement shall be determined by the Central Bank of Uganda.
hire purchase agreement is excluded or restricted;
a hirer by reason of the termination of the hire purchase agreement by him or her under that section;
the bailment in any manner, is subject to liability which exceeds the liability to which he or she would have been subject if the agreement had been terminated by him or her under this Act;
formation or conclusion of a hire purchase agreement is treated as, or taken to be the agent of the hirer;
a person acting on his or her behalf in connection with the formation or conclusion of a hire purchase agreement;
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Act 3 Hire Purchase Act 2009 for the hired property;
hirer’s premises without the knowledge or express authority of the hirer for the purposes of the repossession of the hired property; or
goods under section 10, is void.
at the time when the property is to pass;
possession of goods as long as there is no default;
encumbrance in favour of a third party at the time when the property is to pass; and
Uganda without the consent of the owner.
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Act 3 Hire Purchase Act 2009 defects which the examination revealed or ought to have revealed.
Part III—Termination And Completion of Hire Purchase Agreement.
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Act 3 Hire Purchase Act 2009
or
and the hirer has failed to fulfill any of the obligations under this subsection, the hirer shall pay damages for failure to fulfill that obligation.
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the day specified.
possession of the goods, upon paying or tendering to the owner in addition to the net balance due—
incidental to taking possession of the goods;
storage, repair or maintenance of the goods; and
Part IV—Recovery of Possession By Owner.
any hired property or the collection of any payment by the hirer or the repossession of any hired property.
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Act 3 Hire Purchase Act 2009 hundred currency points or imprisonment not exceeding one year or both.
Except in the case of an agreement to the contrary, the owner shall communicate to the hirer in writing delivered at the hirer’s place of abode or any other location agreed upon, in connection with the hire purchase agreement only between the hours of six o’clock in the morning and six o’clock in the afternoon on a working day.
location of the hirer or the hired goods;
competent jurisdiction;
judicial remedy; or
An owner shall not as a result of a default, charge late charges greater than the interest payable at prime rate.
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the owner shall not enforce any right to recover possession of the goods from the hirer otherwise than by suit.
is entitled to recover from the owner by suit all sums paid by the hirer under the agreement or under any security given by him or her in respect of the agreement; and
paid by him or her under the contract of guarantee or under any security given by him or her in respect of the agreement.
the operation of the order on condition that the hirer or any guarantor pays the unpaid balance of the hire purchase |
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Act 3 Hire Purchase Act 2009 price at such times and in such amounts and fulfils such other conditions as the court thinks just; or
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Act 3 Hire Purchase Act 2009 contravention of section 15, this section shall not apply in relation to a suit by the owner to recover the remainder of the goods.
guarantor on account of the unpaid balance of the hire purchase price, except in accordance with the terms of the order; and
hire purchase agreement, and of any contract of guarantee relating to it, as to payment as the court considers necessary, having regard to the variation of the terms of payment.
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Act 3 Hire Purchase Act 2009 the owner to apply to the court for leave to execute the order unless the court directs that application to be made.
further modification of the hire purchase agreement and of any contract of guarantee relating to it as the court considers necessary having regard to the variation of the conditions of the postponement;
owner and for the transfer to the hirer of the owner’s title to the remainder of the goods. Part V—Licensing of Hire Purchase Business.
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The Minister shall by statutory order, declare the licensing authority for the purposes of this Act.
Where a licensed person applies for renewal of a licence before the expiry of the existing licence, the person may continue carrying on hire purchase business until the licensing authority has decided whether or not to renew the licence, even though the decision has not been made by the date of the expiry of the licence.
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Act 3 Hire Purchase Act 2009
Part VI—Miscellaneous.
Where goods have been hired under a hire purchase agreement and at any time after two thirds of the hire purchase price has been paid or tendered the owner makes a further hire purchase agreement with the hirer comprising the same goods, sections 16 and 17 apply in relation to each subsequent agreement from the time that particular agreement comes into force.
Where the owner enforces a right to recover possession of the goods |
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Act 3 Hire Purchase Act 2009 from the hirer otherwise than by suit, he or she shall—
as is reasonably practicable; and
which exceeds the sum of the unpaid balance of the hire purchase price and the expenses necessarily incurred by the owner in recovering possession of and selling the goods.
If, while the enforcement by an owner of a right to receive possession of goods from a hirer is restricted by this Act, the hirer refuses to give up possession of goods to the owner, the hirer is not, by reason only of the refusal, liable to the owner for conversion of the goods.
behalf of the hirer, and the date of each payment;
agreement, the amount of each instalment which is to become due and the date, or the mode of determining the date, upon which it is to become due.
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or to enforce any contract of guarantee relating to the agreement, and the owner is not entitled to enforce any right to recover possession of the goods from the hirer; and
under the agreement or given by a guarantor in respect of money payable under a contract of guarantee is enforceable by any holder of the security against the hirer or the guarantor, as the case may be.
An owner is not entitled, by reason of the hirer’s failure to carry out any obligation under a hire purchase agreement, to enforce—
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Act 3 Hire Purchase Act 2009 part of an instalment which is not less than ten percent of the hire purchase price, or two or more instalments or part of instalments which altogether are not less than five percent of the hire purchase price, are due and unpaid; or
unless he or she has made a written demand to the hirer to carry out the obligation in question within a specified period of not less than fourteen days beginning with the date of service of the demand, and the hirer has failed to comply with the demand.
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some other person who appears to be a resident or employed there and who appears to be over the age of eighteen years; or
place of abode or business in Uganda.
A person who knowingly gives false information in any proposal form or other document completed for the purpose of entering into a hire purchase agreement commits an offence and is liable, on conviction, to a fine not exceeding twenty five currency points or imprisonment not exceeding six months, or both .
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Act 3 Hire Purchase Act 2009 A hirer who takes goods obtained by him or her under a hire purchase agreement out of Uganda without the consent of the owner in contravention of section 8(1) (e) commits an offence and is liable on conviction to a fine not exceeding one hundred currency points or imprisonment not exceeding one year or both.
under this Act;
agreements;
of second hand goods under this Act;
regulations a penalty not exceeding a fine of fifty currency points or imprisonment not exceeding twelve months, or |
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The Minister may, by statutory instrument, with the approval of Cabinet, amend the schedule.
commencement of Act
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SCHEDULE. ss.3, 37 CURRENCY POINT. A currency point is equivalent to twenty thousand Uganda shillings. |
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