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Report No. 20

Clause 6

General.-Section 8 of the English Act sets out the conditions and warranties which are to be implied in hire-purchase agreements, and that has, in general, been adopted in this clause.

Condition for title-when owner should have title

It will be seen that under the draft, the condition as to the title of the owner is to operate at the time when the property in the goods is to pass.1

Sale of Goods Act

Though some of the warranties and conditions dealt with in this clause are also dealt with in some provisions of the Indian statute law,2 still, for the sake of comprehensiveness they have been included in the draft, on the lines of the English Act.

Structure of clause

The structural arrangement of clauses given in the English Act has been departed from, in order to deal separately with warranties, conditions other than those of fitness, and condition of fitness.

"At any time when the property is to pass"

The words "at any time when the property is to pass" have been used (instead of "at the time when the property is to pass") to leave no doubt that the clause applies both (i) when the property passes under the agreement, and (ii) when it passes by virtue of the Act-by premature purchase.

1. For a detailed discussion see the body of the Report, para. 12.

2. These have been cited within the brackets, under the clause.

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