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The position is the same under a contract of hire purchase.
If interest was included, then the deposit became a contract of hire.
It is a contract of hire which also gives the hirer an option to purchase the goods.
I believe protection of all Liadens falls within your contract of hire?"
The same approach would also apply to contracts of supply such as bailment and contracts of hire.
(2) Chattel mortgage legislation does not apply to a genuine contract of hire even in the case of a sale and leaseback.
Thus s 7(4) is now restricted in practice to business contracts where possession of goods passes, but not title, namely contracts of hire, rental, lease or bailment.
The only difference is that in a contract of hire the implied terms concerned with the "owner's" right to transfer possession of the goods can be excluded if the term satisfies the test of reasonableness.
The purpose of bailment and sale is different because, in the case of an ordinary contract of hire, it is not intended that general property in the goods will pass to the bailor/hirer.
Nevertheless, there are some important differences which attach to the categorisation of the transaction as a contract of hire:(1) The hirer is not a person who has "agreed to buy" for the purposes of s9 of the FA 1889.
If a company hires out equipment for a given time on payment of a fixed fee, its profit derives from the contract of hire and not from its continued forbearance from seeking to recover that equipment during the contract period.
Certainly Chalmers, the draftsman of the SGA 1893, considered that each provision in the Act should have a common law history, an outlook which influenced the approach to formulating the statutory implied terms in contracts of hire under the SGSA 1982.
An agreement which is described as a lease or a rental is essentially a contract of hire and a hire agreement is one under which the possession of the goods passes to the other party but the property in the goods (the ownership) remains with the supplier.
He decided a large number of important contract cases but is possibly best remembered for his judgments in the Swinfen will case, in particular Kennedy v. Broun (1863) in which he held that there could be no contract of hiring and service for advocacy in litigation.
A contract of hire is a species of bailment and although it is readily distinguishable from sale in that general property is not intended to pass to the hirer, there are important public policy issues in a consumer hire context, which dictate that the owner be subject to similar liability to that visited upon the seller.